Your car insurance protects you from unexpected costs resulting from vehicle accidents and other unforeseen situations, which is why it’s essential to choose a provider that meets your exact insurance needs. If you feel that you’re no longer satisfied with the coverage or services offered by your current insurer, it may be time to consider finding another company that better caters to your insurance demands.
Below, Underground Elephant, a company that offers tips and tricks for lowering your car insurance payment and providing a personal quote comparison tool from the nation’s top providers, describes several good reasons why you need to make the switch and helpful tips on how and when to change companies:
Common Reasons to Switch to a New Insurer
Bad Customer Service
You may be frustrated that your insurance company is just so hard to reach through email or phone, even if you’re a loyal policyholder. What’s worse, each time you successfully contact them, you find yourself dealing with an unfriendly, unprofessional, and rude company representative.
Poor customer service is one of the determining factors when deciding to stay with the same company for a long time. If you’ve been enduring horrible customer service, you may want to consider moving on to a more customer-friendly firm that cares about communicating properly with policyholders and doesn’t delay in resolving concerns.
Terrible Claims Experience
Your insurance provider may have given you a hard time managing your claim. Because property damage and injury claims are often complicated and time-consuming, it’s crucial that your insurance company handles claim requests promptly and fairly. If you’re disappointed and exasperated that you haven’t received a just compensation that you deserve, then it may be the right decision to find a new insurer after settling your claim.
Unreasonably Exorbitant Prices
Unexpectedly high rates are another top reason why many policyholders flee to a new insurer. Your provider may have offered competitive rates previously, but the prices, unfortunately, skyrocketed after some time, making your insurance coverage much more expensive than you initially expected. To make sure you’re getting the best rates, it’s critical to shop around and compare the rates of at least three auto insurance companies once you’ve decided to shift to a new insurer.
Perhaps you’ve found out that your insurance policy doesn’t quite cover everything that you want to be insured. Or, your needs may have changed, and your current insurer doesn’t offer the best coverage. In this case, finding a new provider that provides complete coverage that meets your requirements is a smart move.
How and When to Change Auto Insurance Companies
Investigate different companies and shortlist insurance firms with excellent track records when it comes to handling claims. Ask family, friends, and colleagues for recommendations. You can also check online forums and review sites as well as consumer publications to find the most reputable insurance providers. Additionally, check with your state insurance office to discover customer complaint ratios. What you want is not just an insurance company that offers competitive rates but one that delivers outstanding claims service.
Make sure you understand the extent of protection your new policy provides, especially the amount of liability protection and bodily injury protection. Many auto insurance companies offer considerable discounts when you get multiple policies, such as car insurance and home insurance, all from the same provider. Once you’ve weighed your options carefully and made a final decision to move on to another company, it’s best to contact your existing provider instead of simply waiting for your premium period to expire or refusing to pay the renewal fee.
The ideal time to notify your provider is near the end of your premium period. Typically, auto insurance firms allow you to cancel your policy when you give proper notice. Some companies charge a minor fee when you cancel early. Ask your provider about any penalties involved for canceling plans, so you can decide whether to switch immediately or wait until one to two months before the renewal period.
Everything should be put down in writing when signing up for a new policy, and you should confirm that your old policy is canceled correctly. Be sure that your new policy is in effect before contacting and leaving your existing provider for good. “The last thing you’d want to happen is to run into a vehicle accident or other car-related troubles without having sufficient auto insurance to protect you financially,” said Underground Elephant.
If you’re not satisfied with your present car insurance company, looking for a better one is a practical choice. Besides getting better customer service, you may be able to make substantial savings if you shop around. Remember to choose your desired start date and pay your initial premium after having your application approved before ending any existing policy. By taking the right steps, you’ll experience a smooth transition and fewer hassles while changing auto insurance firms.