How to Change Car Insurance Companies

Thinking of how to change car Insurance Companies? Well, then you are at the right place! We are here to address you on how you can possibly change the company of your Car Insurance. 

The car insurance covers your vehicle damage and protects you financially. As we all know, Car Insurance is a mandatory annual expense for every driver. Car insurance validity is for one year with a yearly renewal policy.

The car insurance company can be changed when the expiry of current insurance is about to get over. A small amount of research can quickly get you the new insurance company of your liking. Car Insurance is essential, and if it’s not done it can result in fines, license suspension, or even jail time.  

Car Insurance covers accidental liabilities, Comprehensive damage, collision, medical payment, personal injury payment(PIP), and other optional coverage like gap coverage and auto insurance coverage. If you are looking for a Mutual Insurance company then Progressive Insure is the one to go to. It promises to give ‘Security and Protection’ to all its vehicle owners. 

Well, if you are wondering ”How does Progressive insurance work?” then here’s a quick rundown. Progressive is an insurance provider for home, auto, and life insurance coverage. Progressive has become one of the leading insurance providers in the auto insurance zone. It offers customizable auto and home insurance coverage. They provide a wide range of qualifying discounts and auto insurance discounts which rank best in the industry. 

So, the customers can access a wide range of user-friendly tools and resources online. The progressive has above average grading in A.M. best ratings which indicates its strong financial growth

Why Change the Car Insurance Company?

The common mistake buyers make while purchasing a car is their haste to get their car insured. As a buyer, you should invest plenty of time in analyzing your requirements and looking deeply into the insurance companies. There are many reasons which force the buyer to change the insurance company.

1. Expensive Premium – There might be chances that you are paying more than needed to the car insurance provider. The car premium charged by every insurance provider is different. However, there should be a justified difference between the standard market rates. 

If you are noticing that your insurance provider is charging you more compared to other insurance companies it’s the best time to change the car insurance company. 

2. Customer Service – Good Customer base is one of the best ways to maintain a healthy relationship. Companies generally invest a lot in building long-term relationships with their buyers. However, if you are noticing that your requirements are not met look for another insurance provider. 

3. Quality Service – One of the eminent reasons for a car owner to change their car insurance company is the quality of service. Some car insurance companies take too long to clear the claim process. which shows the company’s willingness to meet customer requirements. 

4. Not enough add-ons – Insurance companies offer a lot of add-ons to their insurance. If you feel that your company isn’t offering you specific add -ons or even the specific ones that you might want, then you should look for a new car insurance company. 

Changing a car insurance company is an easy process now, as all the work is done online. However, you should do proper research before changing your car insurance provider. There are  many steps to look forward to while changing car insurance companies : 

  • Analyze your requirements
  • Research and compare policies 
  • Check suitable coverages
  • Check for the online reputation of the insurer
  • Check the claim settlement
  • Began with a purchase journey
  • Choose the right IDV
  • Choose the required ad-ons
  • Go through the terms and conditions of the policy

Risks Involved in Changing Insurance Companies

There are advantages as well as disadvantages while changing a car insurance company.  Let’s learn about some of the risks of changing insurance companies.

Loyalty and Claim Benefits – Your current auto insurer may be giving you the loyalty benefits like an accident or claim forgiveness and maybe you have some discounts due to your tenure. These perks may also go when you will change your car insurance policy. It will only make sense to change insurance when the same things are provided to you by the new insurance company. 

Penalty for Switching – If you will frequently change your car insurance company you will have to face a penalty. It’s very unlikely that you will get the best rates because your tenure with your old insurer is a rating factor for other insurers. Be sure to read the reviews of people with insurance and be certain before switching.

Potential Coverage Gaps – Insurance companies update their policies often, and make sure that you have the same coverage on your new policy. The insurance companies use standard policy terms and offer the same coverage options. They may be just named differently, you should always look for insurance expertise to know everything. 

Premium and Terms – The premium prices generally increase as you age, you might end up paying more by changing to a new car policy. Plus there are tax implications for every new policy.

Medical Exam and Hidden Clauses – You will also have to go through the medical examination again. The result of the exam may affect your eligibility for new policies. An ‘ incontestability clause’ means a provider can contest your death benefit during the policy’s first two years; it is also there in medical exams. 

Benefits of Changing Insurance Companies

Special Offers and Discounts  – When you switch to a new car policy you will get Special Offers and Discounts as their new customer. They will give you updates on their discounts on your contact number and by mail. You can always avail the benefit of a new customer. As it is a promotional tactic to lure more customers. 

Wide Range of Add-Ons – The new insurers are providing a wide range of add-ons to the customers. Earlier there were limited benefits but today you will get many benefits from different insurers, like zero depreciation cover, engine protection cover, roadside assistance cover, passenger cover, daily allowance cover, consumables cover, and many more. 

Better Customer Service – Customer service is considered the face of the company. A good insurance company will have an experienced customer support team to assist you in all your queries.

Better Claim and Coverage  Service – An insurance company will provide you the complete coverage and better claim as per policy terms for the premium you will pay. 

How to Change Car Insurance Companies

These are some easy steps to follow while changing your car insurance company : 

  1. Note your Requirements
  2. Compare car insurance policies that suit your requirements
  3. Visit your preferred insures’s website
  4. Enter the required details
  5. Review coverage, terms and conditions, and policy wording 
  6. Make payment 

When is the Best Time to Switch Car Insurance Companies?

Insurance is for Renewal – The best time to change your car insurance company is when your car insurance is for renewal. Annually every car needs new insurance. If you are thinking about changing the car insurance company, don’t do it in mid-year or after two-three months, do it when the old policy it’s about to expire and it will save you from extra penalties.

Change of City or State –  If you have moved to a new state you might want to change the policy. as state and even zip code may impact your car insurance. Every city has its policy rates. Maybe you have to pay less compared to your old policy.

Just bought a new car –  If you have bought a new car you will need a new policy. Just compare all the policies and then choose the one which suits you the best. 

Since there are so many things to keep in mind before changing a car insurance company and the insurer never binds you to stick to their policy, you should feel free to switch whenever you like. Be sure to read the reviews of the insurance companies and be certain before switching.

Also, remember to cancel the old policy before buying the new one. If the new policy is in your hand you will not end up paying more. Do thorough research for a new rate before cancelling and check your potential penalties.

In addition, make sure to print new insurance id cards to stay away from unnecessary fines. By updating yourself on the risks and benefits of changing car insurance companies, you can smooth the changing process.

How to Change Car Insurance Companies was last updated June 19th, 2022 by Lokesh Jaral