If you’re looking to save money on your living expenses, but are struggling to find ways to cut back, then switching car insurance companies is an easy way to reduce your cost of living and get more value for your policy.
In 2022, it was reported that more than half of insured drivers were overpaying for their car insurance, yet many policyholders remain hesitant to switch companies to avoid a potential lapse in coverage.
Contrary to popular belief, switching car insurance does not have to be a complicated process.
In fact, you can easily find more affordable coverage options and switch your policy to a new carrier in just 6 simple steps.
But before you begin the policy shopping process, there are a few key factors that can help you determine if switching car insurance companies is the right move for you and your family.
Top 5 Reasons You Should Switch Car Insurance
Whether you’ve gone through a major life event or you’re just looking to lower your rate, these are primary instances when changing car insurance should become a top priority.
One of the factors that help determine your car insurance rate is your zip code, especially if you live in an area with busy traffic that may increase your risk of being involved in an accident.
But if you’ve recently relocated to a less congested neighborhood, then you may be eligible for a significantly lower car insurance rate that still includes all of your necessary coverages.
You Added A New Driver
Ready to add your child to your car insurance policy? Then it’s a good idea to start comparing rates from different auto insurance companies.
Typically, young drivers are more expensive to insure than experienced drivers, but that doesn’t mean you have to settle for an overpriced policy.
With a little bit of research, you can find company offers that are designed for growing families, no matter how inexperienced the driver you’re bringing on is.
Your Relationship Changed
Another major factor that impacts your car insurance rate is your marital status.
So, if you’ve recently tied the knot, you’ll want to compare car insurance rates to make that you and your spouse are adequately covered, especially if you plan to share a vehicle.
On the other hand, going through a divorce can also affect how much you pay for car insurance. If you’re currently separated, you should adjust your policy to remove any unwanted drivers and determine if there may be more budget-friendly coverage options for your needs.
You Bought A Home
Buying a new home is an exciting time for most adults, but many don’t realize that this achievement can also help lower your car insurance rate.
If your car insurance company doesn’t give you the option to bundle your home and auto insurance policies at an affordable price, you should consider shopping around for a more well-rounded policy that fits all of your lifestyle needs.
Your Rates Went Up
Of course, switching car insurance companies doesn’t have to be the result of a significant life change.
If you’ve noticed that your rates have steadily increased over time, but your current carrier hasn’t offered you any discounts to help lower your costs, then it’s time to start comparing rates from competitive auto insurance companies.
When You Shouldn’t Change Carriers
Even if you notice that your rates are rising, some barriers may prevent you from changing insurance carriers.
If you’ve recently been involved in a car accident or have any open claims that are still in the process of being settled, you won’t be able to switch policies until all of these pending issues have been completely resolved.
You should contact your insurance agent to ensure that there are no lingering claims that may hold you back from lowering your rate with a new policy.
How To Switch Car Insurance In 6 Steps
Regardless of where you are in life, you deserve quality coverage options that meet your needs and budget.
That’s why we’ve broken down the car insurance switching process into 6 easy steps so that you can take immediate action towards getting the lowest rate possible.
Step 1: Check Your Policy Terms
First, you’ll need to evaluate your current policy to see when you’ll be due for a renewal, as well as any penalties you might incur from canceling your policy before the expiration date.
If at all possible, it’s best to wait until your renewal period to switch car insurance companies, so that you can easily end your contract without any fees or other complications from your current carrier.
But in the event that you can’t wait until your policy’s expiration date, you can still switch your policy with just a few additional costs.
Step 2: Start Comparing Rates
Next, you can start comparing rates for the coverage options you need most, so you can get an idea of which carrier is best able to meet your needs.
By working with a licensed insurance agent, you can quickly fine-tune your policy shopping approach and ensure that you get the most accurate quote for every policy, allowing you to make the right choice for your coverage moving forward.
Step 3: Contact Your Carrier
When you’re ready to cancel your current insurance policy, you’ll need to contact your car insurance company directly to start this process.
While the cancellation process varies from carrier to carrier, you should expect this process to take up to 30 days from the time you initiate your termination.
Step 4: Pay Any Cancellation Fees
Unless you’re able to wait until your expiration date to cancel your policy, you’ll most likely be asked to be a cancellation fee for terminating your contract early.
In most cases, the cancellation comes with a flat fee of less than $100, so you can budget accordingly if you’re planning on auto insurance companies in the near future.
Step 5: Avoid A Lapse In Coverage
Continuous coverage is an essential part of driving safely, and lapsing in your car insurance can lead to serious fines and penalties if you’re pulled over or involved in an accident.
That’s why it’s crucial to select your new car insurance policy before you cancel your existing plan so that you can seamlessly transition from one carrier to the next without the risk of being left uninsured.
Step 6: Switch Your ID Cards
Once you’ve successfully switched companies, you’ll need to update your proof of insurance, so that you can save yourself the hassle of being ticketed for lack of coverage.
You should print a new insurance id card as soon as your new policy goes into effect, and keep your cards in your vehicle at all times.
Ready to make the switch?
We understand that change can be stressful, especially in the midst of everyday life.
That’s why IIBA is here to alleviate the burden of finding great car insurance coverage at a reasonable rate, no matter what your circumstances look like.
We create a customized approach to comparing rates that put your needs front and center, and we deliver the best rates from over 40 of the industry’s best car insurance companies so that you can pick your new policy with confidence.
Most importantly, we take extra care to ensure that our customer service team leaves no stone unturned, helping you to transition between policies without any unexpected costs.
Connect with our team to start switching your car insurance policy today.