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How to Smoothly Switch Car Insurers

Switching to a new car insurer is not as grueling a task as it is generally perceived to be. Handling the whole process of changeover in a proper way would save you from any unpleasant surprises and undue troubles.

6 simple steps for a smooth transition

Go by the following sequence of 6 simple steps to ensure a transition with minimum hassles-

  1. Shop around and get a new insurance policy from a new insurance provider.
  2. Ensure that the in-force date of your new policy coincides with the cancellation date of your existing policy so that there are no lapses.
  3. Notify your existing company in writing for the cancellation of the running policy with them providing the complete details regarding the intended cancellation date and the reason for cancellation.
  4. Complete the all the cancellation procedures of your existing company such as payment of the cancellation fees.
  5. Ask for the due refund of your unused premiums, if any.
  6. Confirm the cancellation of your old policy by receiving the official policy cancellation notice from the insurance provider.

Best time to switch insurers

The most appropriate time to make a switch of the insurance company is around a month prior to your policy renewal. The renewal period of car insurance policies generally varies from 6 months to a year. Usually, the insurance companies are required to send a renewal notice to the policy holders about a month before the renewal date.

Cancellation in the middle of a cycle

The good news is that you are not bound to wait for the renewal of your existing policy to make a call for cancellation. However, annulling your policy in the middle of a cycle bears certain drawbacks:

  1. You might have to face certain problems with recovery of the unused premium amount as the refunds could be made subject to heavy deductions.
  2. You could be imposed with cancellation fees as penalty.

Hence, you should prefer to wait for the renewal time to withdraw your car insurance policy.

Consider policy switch with the existing company

Buying a new insurance policy with a new insurance provider might not be the best idea. Your current company might be able to make amendments in the existing policy or you can switch for a better policy.

If you choose to withdraw the policy then you might have to give up on the longevity or multi policy discounts and the enhanced services being offered to you under your current company’s customer loyalty and retention programs. Give a chance to your company to offer you better deals.

Quick tips

  1. Select a new company after a comparative study of the rates and services being offered by the prospective insurers in the market.
  2. Adhere promptly to the cancellation formalities of your existing insurer.
  3. Do not forget to get your new policy effective before cancellation of the old one. Enforcement of new policy can take some time so you need to plan accordingly.
  4. Ensure that the new policy comes at better discounts and savings than the previous one.
  5. Attract better deals from the prospective providers by keeping your car in a good condition by going for regular brake services and overhauling of the engine.

Author Bio: Ella Rich is a professional writer. She covers various topics. She spends her time by researching best things about technology like car repairing and servicing with her followers. She loves travelling to new places and discovering exotic cultures and cuisines.