Written by Q: I’m with a great insurance company, but, I’m not sure if I’m getting the best rate. Is it ok to change insurance companies in the middle of a policy?
AIS Answer: The quick answer is YES. You can switch auto insurance companies at any time, but timing can certainly save you money in some instances.
Here’s an example.
Let say that you just signed up with an insurance company last month. Then, you decided to get a few free quotes online and another company was offering a policy premium saving a few hundred dollars per 6 month term.
Currently you still have 5 months left on your 6 month policy, you’re due to pay the second installment if you haven’t already and you’ve certainly paid the first installment which was much larger than the other monthly payments. At this time you may find that you’ve already invested more money in this 6 month policy than you’ll ever save from switching…but, there is another scenario that may make financial sense.
What about speeding tickets or other citations that may affect your rates?
If you’ve recently received a speeding ticket that has not yet gone through the system (not on your Motor Vehicle Report) or if you plan to contest the ticket but still may lose – then you have the option to switch insurance companies to give yourself a few months before a re-evalutated policy that would show the infraction. If your current policy is up in 2 or 3 months an uncontested speeding ticket may affect your rates on renewal, but, if you switched to another insurance company right before your ticket hits your Motor Vehicle Report you’ve got a new 6 month policy that will not be re-evaluated for 6 months.
If you plan on switching insurance companies, get a few free quotes online, or call an insurance agent.
Always discuss your individual insurance needs with a licensed agent in your state.
