Your auto insurance is a safety net for your financial security in the event of unanticipated incidents and is a legal need. The price of auto insurance is increasing. Between 2013 and 2022, auto insurance prices climbed by 45.4%. The wisest choice might be to do something other than continue doing business with the same auto insurance company for many years. You can start to ponder if it’s time to shake things up when the times and the situation change. We’ll walk you through the indicators that indicate when to switch car insurance, how to switch car insurance successfully, and when it would be a good idea to stick with your current provider.
Before you plan to switch your auto insurance, Beem provides you with a one-stop solution to compare quotes from various insurance providers to help you get the best deal and save you hundreds of dollars every year.
When to Switch Your Car Insurance
Policy Renewal Time: It’s a good idea to assess your auto insurance coverage and costs when your insurance is up for renewal. Consider other insurance options that suit your new circumstances if you’ve undergone a substantial life transition, such as relocating or getting married.
Rate Increases: If your insurance premiums have seen consistent hikes even though your driving record remains clean, it could be a sign that your current provider is no longer offering competitive rates. Shopping around for better deals is a smart move in such situations.
Life Changes: Life events like getting a new car, adding a teen driver to your policy, or becoming an empty-nester can impact your insurance needs. Different stages of life require different coverage options, so it’s worth checking if your current provider can accommodate these changes.
Relocation: Moving to a new area might mean your current insurance company’s rates are less competitive in your new location. Different areas have varying insurance rate factors, so exploring options specific to your new locale is wise.
Unsatisfactory Customer Service: If you’ve encountered consistently poor customer service experiences, it might be an excellent time to seek out a better customer-satisfaction service provider.
How to Switch Your Car Insurance
Switching car insurance doesn’t have to be a complicated process. In fact, with a bit of planning and research, you can seamlessly transition to a new provider who better suits your requirements. Here’s a step-by-step guide on how to switch car insurance:
Assess Your Current Policy
Before switching to car insurance, look closely at your current car insurance policy. Understand your coverage, including liability, collision, comprehensive, and any additional features. Take note of your policy renewal date as well.
Research Other Providers
Explore different insurance providers to find the one that offers the coverage you need at a competitive price. Use online comparison tools to compare rates, coverage options, and customer reviews. Look for providers that have a good reputation for customer service.
Determine Your Coverage Needs
Consider any changes in your life that might affect your coverage needs. If you’ve purchased a new car, moved to a new location, or experienced other life changes, ensure that the new policy you’re considering meets your updated requirements.
Request Quotes
Contact the insurance providers you’re interested in and request quotes based on your coverage needs. Provide accurate information about your driving history, vehicle type, and any other relevant details to receive accurate quotes.
Compare Quotes
Compare the quotes from different providers. Look beyond the premium cost and consider factors like deductibles, coverage limits, and any additional benefits offered.
Check for Discounts
Inquire about available discounts that could lower your premium. Many insurers offer discounts for healthy driving records, bundling multiple policies, being a student or a good student, and more.
Notify Your Current Provider
Contact your current insurance company once you’ve found a new provider that meets your needs. Let them know you plan to switch and inquire about cancellation procedures or fees. This also allows them to offer you competitive rates to retain your business.
Purchase the New Policy
After confirming the details of your new policy with the chosen provider, purchase the new coverage. Ensure the start date aligns with the cancellation date of your ongoing policy to avoid gaps in coverage.
When Not to Switch Car Insurance Companies
| Scenario | When Not to Switch Car Insurance Companies |
| Mid-Policy | Switching mid-policy might involve cancellation fees and a refund of unused premiums. Waiting until the policy term is up is generally advisable. |
| Loyalty Discounts | If you have accumulated loyalty discounts with your current provider, switching might result in losing those benefits. Evaluate the long-term financial impact of losing these discounts before making a switch. |
How to Save Money When You Switch Car Insurance
- Bundle Policies: Consider bundling your auto insurance with other policies, like homeowner’s insurance, for potential multi-policy discounts.
- Raise Deductibles: Increasing your deductibles can lower your premiums but ensure you’re financially prepared to cover the higher deductible in case of an accident.
- Maintain Good Credit: Many insurers consider credit scores when determining premiums. Maintaining a good credit score to secure lower rates will be helpful.
Conclusion
Now you know when and how to switch car insurance when required. Switching car insurance can be a strategic financial move when circumstances change, rates rise, or customer service disappoints. To ensure a seamless transition, research, compare, and make informed decisions based on your needs. Use Beem’s online comparison tool to find the best policy for your needs. Check the coverage options, deductibles, and premiums offered by different insurance companies and pick the best one that suits your needs.
Remember that timing matters, and avoiding gaps in coverage is essential. Assess potential savings, but also factor in the value of loyalty discounts if you’ve accumulated them. You can make the most out of your car insurance choices by staying proactive and informed.
Frequently Asked Questions:
Q. Can I switch car insurance mid-policy?
You can switch mid-policy, but it might involve cancellation fees and refunding unused premiums. Waiting until the policy term is up is generally advisable.
Q. Will I lose my loyalty discounts if I switch insurers?
Yes, switching insurers might lead to the loss of accumulated loyalty discounts. Consider the financial impact of losing these discounts before making a decision.
Q. Can I switch car insurance online?
Absolutely! Many insurance providers provide online tools to help you conveniently research, compare, and switch car insurance from the comfort of your home.
