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4 Steps for Switching Your Car Insurance Provider

If your car insurance premiums are on the rise while the customer service you receive from your provider is not what it used to be, it may be time to switch your insurance coverage. One recent report indicates that some new car models are affordable to insure, but if you are working with a company that does not strive to find you the best coverage possible, you may lose money elsewhere in your premium. Changing insurance companies can be daunting; however, there are a few steps you can take to find the right services for your budget and needs.

Understand Your Insurance Needs

When you first signed on with your current insurance company, you may have taken their advice about what was required or, if you did not own your car at the time, what your bank or lender required. If you have paid your car off since then, you might want to look into what you change about your policy before you switch carriers.

For example, if the bank required you carry collision insurance as well as basic liability, you may be able to get lower monthly premiums if your car is now paid off. You may also now qualify for certain discounts you could not take advantage of before. Make a list of what you want in a policy before you look for a new provider.

Talk With Your Current Agent

Speaking with your local car insurance agent can be an important step in switching providers because he or she may offer you a variety of policy discounts you were not aware of. In many cases, car insurance companies may have discounts available but drivers usually have to be proactive when it comes to seeking them out. While your current carrier might not be able to offer you bundling or other discounts, having this information can be helpful as you shop around for other services.

Beware of Cancellation Fees

Before you decide to make the switch, it is wise to review your current car insurance policy to ensure you will not be penalized for canceling it. While not all companies charge for this service, others may fine you as much as $50 depending on when you cancel. You may want to reach out to local insurance agents as you shop for a new policy to compare how each company handles cancellations in case you must change services again somewhere in the future.

Cover the Gap

Once you find a new insurance provider, it is important that you cover any gaps in your car insurance as you switch your policy over. Most companies now have phone apps that can provide you with digital proof of insurance until they can mail you physical copies, and you can usually begin a new policy right away. You might want to ask your new provider representative about this detail so you can be sure you are covered completely as you make the switch.

Switching car insurance companies might help you find a more affordable policy and improved customer service. Knowing which steps to take during this process can help you make a confident decision about which carrier will best suit your insurance needs and budget.

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