How to Change Car Insurance Companies

If you decide the time has come to change car insurance companies for whatever reason, you may be worried that this is a very involved process. It is not. Once you come to this realization, you may kick yourself for not doing it sooner. Switching doesn't take long and you can save a great deal of money by doing so.

Have you recently discovered that you are overpaying for car insurance? Are you unhappy with the customer service at your current insurer? No matter why you are thinking about making a switch of this type, the process is easy. In fact, you may wonder why you didn't do it sooner. Thanks to the Internet, you can do this right in the comfort of your own home while watching TV.

1. Research to see what other carriers are charging for coverage similar to yours. Carriers may charge based on a number of factors. It may be that your carrier has found that those in your coverage group tend to file more claims. For example, those who drive fancy sports cars may tend to file more claims than those who drive minivans. Another carrier may experience the exact opposite. This is why the rates can vary so greatly. Once you know which carrier gives you the best price for comparable coverage, it is time to make the switch.

2. Purchase your new policy first! This is essential as most states have laws requiring you to have a certain amount of coverage. This protects you from a gap in coverage. For this reason, your current carrier may not allow you to cancel your policy until you have shown proof of new coverage. If you refuse to do so and refuse to pay your premium, they may then contact the DMV to alert them to this lapse in your policy. 

3. Contact your current insurer. Do this in writing. Be sure to include the date you want the policy to be cancelled. It may be that your current insurer has already been informed by the new company. Take this step anyway to ensure you are covered and are not charged for coverage from two carriers. Your insurer will send you a cancellation request. You will need to review this carefully and make sure all of the information is correct. If it is, sign the form and return it. Once this step has been completed, you have changed companies. What could be easier?