How to Change Car Insurance?

There are times when it’s crucial to change your car insurance provider, especially when other insurance companies are offering better coverage at cheaper and more affordable rates. Or, if you’re having issues with your current insurer. Apart from the cost of insurance, and quality of service, it’s also necessary to switch if you move to another city or state which isn’t covered by your current insurer.

Regardless of the reason, the process of switching from one insurance provider to another is pretty much quick, easy and straightforward. To avoid confusion and for a better understanding this article explains a detailed step-by-step guide.

How to Switch Car Insurance Provider?

If you’re on the verge of switching to another car insurance provider, or if you have decided already then here are the steps as follows.

Search for Car Insurance Companies Online

The first step is to search car insurance companies online, particularly the ones nearby, especially because many car insurance companies provide coverage within a specific location, mostly within a state.

As you’re switching insurers it is essential to search, and list out multiple reliable options. In this way, you can compare and determine which insurance company offers the best coverage and adequate financial protection within your budget. For an effective comparison, it is recommended that you shortlist at least 3 to 5 insurers.

If you’re looking for a reliable and affordable insurance agency in Michigan, consider checking our car insurance solutions or visit our regional offices in Flint MI, Saginaw MI, and Mt Pleasant MI.

Contact the Insurers and Get Quotes

The most important part of the comparison is the insurance rate that each of these insurers will be charging you for each type of auto insurance coverage. So, that’s why you should call the insurance companies that you have listed and ask for their quotes.

Once you get the car insurance quote from multiple insurers, you can analyze and compare to determine which one’s offering a better deal within your budget. You can even negotiate better by pointing out that another insurer is offering a cheaper rate, in this way it will be easier for you to bid on a lower car insurance premium.

Compare the Car Insurance Policies

When it comes to switching from one insurer to another, it’s crucial to carefully analyze and compare every aspect of the insurance policy. First check the types of car insurance coverage that each of these insurers are providing, and their insurance rates. Also ensure comparing discount rates, bundle offers, and deductibles.

Remember as you’re switching insurance providers, it is essential to ensure that the car insurance policy of your new provider is better than your current one. Out of all the options make sure to go for the insurer offering the best car insurance policy at the most affordable rate.

Find Out How They Process Insurance Claims

The main reason you’re purchasing car insurance is to get adequate coverage at the right time. There are some insurance companies that have a tendency of complicating the verification process to delay payment.

It is crucial for you to find out whether the next insurance company has a reliable track record of processing insurance claims. You can go through public reviews on their website, Google Business Profile, and third-party forums. You can even search on Reddit or Quora or you can start your own discussion by asking about the insurance claims process.

Avoid Policy Lapse

Policy lapse is the period in which your car insurance coverage is no longer active. Even a short policy lapse of just 1 day can lead to increased insurance premiums. The longer the policy lapse the higher your car insurance rate is likely to be.

Typically, insurance companies perceive drivers with longer policy lapse as a high-risk driver, as it portrays you may either cancel your car insurance policy or it may get cancelled by the insurer due to any violation of the policy agreement.

So, that’s why it’s essential to avoid lapses, and immediately switch to another insurer if you’re not willing to continue with your current one.

Ensure You’re Not Getting Penalized

Some insurers have early cancellation fees. Before you cancel your current car insurance policy you may need to pay a small fee. To stay on the safe side, it’s best to confirm with your current insurance provider of any outstanding payment that you need to pay.

It’s always essential to ensure that you don’t get penalized in any way, this is mainly because if you do get penalized by your former insurer, your new insurer may charge you a higher rate.

Cancel Your Old Insurance Policy

If you’re switching to another insurer, make sure to cancel your old insurance policy. Although you can have car insurance policy from two different insurers, it’s ideal not to. In fact, it is illegal to claim car insurance for the same accident from multiple insurers, especially to prevent car insurance fraud.

Make sure to contact your current insurer, inform them of your choice to cancel your car insurance and to switch to another insurance provider. Get the paperwork done and pay any outstanding dues to swiftly cancel your old car insurance policy.

Purchase Your New Car Insurance

This is the final step of changing your car insurance provider. Once you have selected the new insurance company, you can purchase the car insurance by filling in the online form, or by directly calling them. Alternatively, you can also visit your insurer’s office to purchase your car insurance as well.

After purchasing your new car insurance, it should get activated within a few minutes or within the same day, unless there is some issue that requires further verification. Make sure to purchase your car insurance the same day you cancel it to avoid policy lapse.

Obtain Your Car Insurance ID Card

After your car insurance is purchased and activated, your new insurer will immediately send you a digital car insurance ID card. It will take about 7 business days for your insurance company to mail the physical ID card to your registered address. You can use both digital and physical car insurance ID cards as proof of insurance.

When Should You Switch Car Insurance Companies?

Usually, most drivers switch car insurance providers for the following reasons below. 

• Your current insurer is charging you a higher rate 
• You have recently moved to another state 
• You’re buying a new car 
• Your current insurer does not provide adequate coverage 
• You’re not satisfied with your current insurer’s service

The Bottom Line 

If you’re considering changing your car insurance provider, make sure to do it by avoiding policy lapse. Many policyholders first cancel their car insurance and then gradually takes a few days or weeks to purchase insurance from another company. This can substantially increase your car insurance rate.

So, that’s why you should switch car insurance providers while staying insured and later cancel the current one once your new car insurance is activated. You can call and inform your existing insurer just before switching to a new one.

If you’re interested in switching to a reliable and affordable insurance provider in Michigan, contact us today for a free quote and a consultation with one of our car insurance experts.

FAQ

Is it difficult to change car insurance?

No, it is not difficult to change car insurance provider. But if you have a poor driving record with legal penalties for traffic violations such as speed tickets and suspended license along with frequent insurance claims then it can get very difficult and expensive to change car insurance. This is mainly because you will be perceived as a high-risk driver for most insurance companies.

Can you change your car insurance coverage at any time?

Yes, you can change your car insurance coverage at any time but make sure to cancel your current insurance policy while purchasing the new one.

How do I cancel and change my car insurance?

To cancel your car insurance all you need to do is call your insurer and inform them you would like to change to a different insurance provider.

How quickly can you change insurance?

You can change your insurance provider within a few minutes to a couple of hours. All you need to do is cancel your current insurance policy and purchase an insurance policy from another insurance company.