When a person first sets out to secure car insurance, they usually shop around and compare several online car insurance quotes. Then, when they find one that offers the coverage they want for a price they agree with, they purchase it. Normally, car insurance policies are in effect for a year. At that time, the policy is reviewed by an underwriter and the premium may increase, decrease, or stay the same. If the new premiums are not paid, the policy may lapse or expire.
In some cases, a policy owner may be dissatisfied with their policy or their insurance company. Whatever the reason, a person may choose to shop around before an auto insurance policy is up for renewal or at the time of renewal. There are a few important things that you must keep in mind before making the switch.
When you obtain car insurance quotes, whether it is online, over the phone, or in an insurance agency, you should have a copy of your current policy in hand. This will outline your current coverage and make an accurate and comparable quote easier to get. By comparing the exact coverage with each company, you will be able to make a more informed decision. If you find another quote that you like better than your existing coverage policies, you should check with your current company to see if there are any penalties for canceling your policy before renewal. This is important if you pay your premiums monthly. Depending when you choose to cancel the policy, the next payment may still be withdrawn from your account. If you have paid your policy up front, a portion may be held back from your refund. Do not cancel your existing coverage policies until you have new coverage in place.
When getting quotes, always give honest and accurate information. Provide a current copy of your driving record so that the insurance company can enter this information into their system and give you an accurate quote. It can be frustrating to tell your old insurance company that you want to cancel your policy, and then find out that your new policy’s premiums are actually higher than the initial quote. If you are replacing a policy at expiry, then you will have to start over and go through the same process as you did when you got your first insurance policy.
You should make sure that you have all pertinent information in hand before you make the decision to switch policies to another insurance company. You need to compare similar coverage, deductibles, and terms to get an accurate quote. You need to check if there will be any penalties applied to your current policy.