Switching Auto Insurance Companies: How To Change Car Insurance
Should I Change My Car Insurance Company?
This is a question you should be asking yourself on a regular basis, i.e. when your policy is about to be renewed. As long as you’ve had auto insurance for the last 6 months you’ll qualify to switch to many low cost providers.
Many insurance companies (and those in the industry including agents) will have you believe that staying with one insurance company is the way to go, but in actuality, it completely depends. For instance, let’s look at this hypothetical scenario.
Let’s say you live in Chicago, Il. Most of us know that this is a big city with major traffic congestion and a fairly high crime and stolen vehicle rate in certain areas. Automobiles are very expensive to insure on average, and living close to or in a major city will often mean higher insurance rates. However, you’re a great driver and you have no accidents in the last 3 years, no moving violations and you drive a relatively inexpensive vehicle. What should you do if you feel you’re paying too much for car insurance?
Get as many auto insurance quotes as possible, that’s what!
Will It Cost Me Money To Switch Insurance Companies?
Automobile insurance companies are susceptible to loyalty as much as any other business, in fact probably more so. While you may not know you can easily and non-contractually leave a certain insurance company for another - cost may be holding you back. Here’s where cost is a concern.
If you’ve just started a new policy, or your old policy has come up for renewal and you’ve gone through to the new cycle - then they’ve likely taken a large portion of the premium within the first month. If you’ve ever wondered why insurance companies charge so much of your premium it’s because they want the portion of the premium that reflects your overall risk, and it’s what they feel comfortable charging you if you were to get in a car accident that month. This is of course the wrong time to leave an insurance company if you haven’t found another company that is offering a substantial savings over your current policy.
The whole point of changing car insurance companies is to keep or increase your existing coverage AND save money. If at any point in your current policy you see significant savings with another company, go for it. In the end it all comes down to finding the best coverage at the best price.
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