4 Steps To Switching Your Car Insurance Coverage

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Avoiding Renter's Regret: Understanding Renter's Insurance Coverage

Moving into my first apartment brought along a whole series of new experiences. I didn't realize that the property insurance my landlord carried wouldn't cover my belongings. I was lucky to find out before anything happened, and I spent a lot of time researching the difference between renter's insurance and the property coverage for landlords. I built this site to share all of the information that I learned, including the insurance coverage best practices I picked up along the way. If you're new to renting and don't have any renter's insurance, I hope the information here helps you to see how it could benefit you and what you need to do to get it.

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4 Steps To Switching Your Car Insurance Coverage

14 March 2016
 Categories: Insurance, Blog

There are plenty of reasons you may be switching car insurance coverage. For example, the cost may be too high and you want to switch to a company that can provide you with a lower rate. Whatever the case, you will want to know how to go about switching coverage in the right way. Dropping coverage altogether can result in a lapse of coverage, which can lead to insurance companies charging you a higher rate. Here are the four steps to switching car insurance coverage:

  1. Call Your Current Insurance Company: First off, you want to call your current insurance company to let them know that you are switching providers. You don't necessarily have to provide a reason, but if it's because you want to save money, let them know. Car insurance companies are going to try and fight for your business, which can lead to your current car insurance company offering you a discount you won't want to pass up, helping you save even more. 
  2. Ask if There is a Fee: Sometimes there is a penalty for leaving your insurance company in the middle of your insurance term. Most companies will allow you to leave without a penalty so long as you provide notice. Still, it helps to know whether or not that is the case so you aren't hit with any unexpected charges for leaving your insurance company.
  3. Watch for a Lapse in Coverage: Don't cancel your current policy until you actually have coverage with another provider. If you cancel your policy and then try to seek out a new policy, it is going to appear as if you were driving without insurance during the lapse. This makes it appear as if you are an at risk customer for the insurance company, and they may charge you more than they normally would, or they could possibly deny you for coverage, as well.
  4. Drive Carefully: Finally, once you have new insurance, you want to do your best to avoid having to file a claim or receiving any speeding ticket marks on your driving record. If this happens shortly after you receive new car insurance, the car insurance company can drop you. Not only does this leave you without insurance for a time, but it also presents you as an at-risk driver with a lapse of coverage, which means you can expect high auto insurance rates in the future.

When you know the proper steps to changing car insurance companies, you can be sure that you get it done in the right way while avoiding any extra charges. For more information, contact a car insurance company like ESI Insurance Agency.