How To Switch Auto Insurance

Shopping online is an easy way to find better auto insurance rates. They say “making the switch” is quick and easy… but is it, really? Simply walking away from an old provider could turn into a mess if you don’t follow all the proper steps to say “Hasta Lavista, Baby.”

1) Have A New Policy In Place.

Ideally, you should begin shopping around for a new auto insurance policy about a month before your current policy is set to expire. Before notifying your insurance provider you’ve moved onto someone new, you’ll want to be absolutely sure your premium has been paid and your application has been approved. The last thing you want is to be caught without insurance!

2) You’ve Set A Date.

When you’re starting up with a new auto insurance provider, it’s important that you talk about when the policy will begin. Overlapping insurance is bad, but it’s even worse to be driving around for a day with no insurance. Get a firm date set.

3) Say Goodbye.

It’s never pleasant, but you’ll need to notify your auto insurance provider that you wish to cancel your policy. You may do this on the phone or in writing. The worst thing you can do is to avoid this task altogether. Burying your head in the sand will lead to collectors banging down your door for nonpayment and a blemish on your credit report. Even if the new provider offers to take this step for you, it’s always best to ensure you are all set.

4) Sign The Documents.

Some auto insurance providers need you to sign official documentation stating that you wish to cancel the policy. Be sure to comply with their protocol and save yourself the hassle of having someone call and mail you constantly to get closure.

5) Don’t Forget About Your Refund.

Some customers are so excited about the new deal they just scored, they forget to see if they have any unused premium coming their way. Ask and you shall receive. Remain mum and you may get a check in the mail… or you may not!

6) Address Any Outstanding Issues.

Usually a new carrier will alert the DMV about your new auto insurance policy, but this is not always the case. Be sure to find out what your responsibilities are. If there is a lien on your vehicle or you are still making payments, be sure to inform the lienholder about the change.

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