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How To Change Auto Insurance Companies
There are many reasons why you may choose to change your auto
insurance coverage to another company. Perhaps you've found
another company that offers you the same amount of coverage for
considerably less money. You might have changed jobs and are
eligible for a group discount through another insurer, or maybe
you're unhappy with the service that your present company
provides. With the growth of the internet and quote comparison
sites, investigating your options has never been easier! Why
change to a new Auto insurance carrier?
You need to regularly review your auto insurance coverage to
make sure that you are receiving the best insurance value for
your money. You will discover that it pays to shop around. In
some states, premiums for identical policies vary widely among
different auto insurance companies. The reasons for this price
variation can be very complicated, but they boil down to a
company's claims experience with policyholders in a coverage
group (e.g. people of similar age, number of accidents, type of
vehicle). For example, if a large number of people in a coverage
group files claims during a given year, their rates will likely
rise. When this happens, better discounts and lower overall
premiums may be available at other insurance companies. When you
decide to switch your auto insurance to another company, you'll
find that it's fairly easy to do so. How to cancel your old Auto
Insurance policy
Generally, all you need to do to cancel your auto insurance
policy is to inform your insurance company in writing,
specifying the date you want the policy canceled. In some
states, the new agent must notify the previous agent of the
policy change. Some auto insurance companies ask the
policyholder send back the actual printed policy. The insurance
company will send a cancellation request form that will need to
be signed and returned. Examine the form carefully to make sure
that all information regarding the policy is correct. If the
form is not received within two weeks of sending the letter,
call the agent or company immediately to check on the status of
the cancellation. Don't just walk away from the old policy
without formally canceling it. Each state requires that auto
Insurance policies be cancelled with notice, thus the insurance
company might assume one wished to continue the coverage, and it
might eventually terminate the policy for failure to pay
premiums and report the lack of coverage to the state Department
of Motor Vehicles. This can hurt your credit rating and ability
to get a new policy. Be sure to get a new Auto Insurance policy
first
Always have a new policy in place before canceling the old auto
insurance coverage. Otherwise you might have a gap in protection
for a day or more! Most states require all drivers to carry a
minimum level of auto insurance and most insurance companies
require policyholders to present proof of new coverage before
they will cancel an active policy. The new company will be able
to time the beginning of the new policy to coincide with the
cancellation of the prior coverage. When to Change Auto
Insurance policies
At Renewal
Renewal is a convenient time to change auto insurance policies,
as you don't have to wait for a refund from your current
carrier. A renewal notice will be sent to you approximately 30
days before a new policy begins, depending on the regulations in
your state. Should you decide to switch companies, you'll need
to have a new policy by the time the current policy renews.
Though a company might say there is 10-30 days to get your
payment in before a policy terminates, you do not have coverage
until the carrier receives the payment. If you have an accident
during this time period you most likely will have no coverage
since the premium wasn't paid!
Anytime:
All Auto insurance policies contain a provision allowing you to
cancel your policy with proper notice at any time. In a few
states auto insurance companies "short rate" the policy that
means one pays a penalty for canceling before the policy renews.
Most insurance companies pro-rate their policies so there is no
penalty. The advantage of switching before the renewal date can
save you a lot of money. For example if you have a policy that
runs from Jan 15th to Aug 15th and you have an accident or
ticket that will be over 36 months on March 15th. By switching
Auto insurance companies on March 16th, you get a discount for
having a clean driving record. Your current carrier won't apply
this discount until the policy renews on August 15th! This can
save you Hundreds of dollars immediately! How long does it take
to change Auto insurance?
When you change auto insurance companies, the new agent or
insurer can generally change carriers while you wait! Generally
they'll just need a copy of your current declaration page,
driver's license and down payment to get the policy issued.
So why not get started today and Get Free Auto Insurance Quotes
from Top Companies
About the author:
Matt McWilliams is one of the co-founders of HometownQuotes.Com,
an online insurance quotes web site. He is originally from
Pinebluff, NC and attended Middle Tennessee State University. He
is considered an expert in the field of online insurance
shopping and finding new ways to help consumers save money on
their insurance. For more information visit
http://www.hometownquotes.com
Matt McWilliams
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