Even though you may have been with your current auto insurance provider for several years, remember that you always have the option to switch to another company. You might consider switching auto insurance companies when you are changing vehicles or undergoing some significant life changes. However, there may be limitations on when you can make the switch, and you’ll need to review your contract to make sure you’re canceling your insurance policy under certain conditions.
Here are five good reasons to switch auto insurance companies:
#1: Increase in Premiums
If your insurance company has decided to increase your rates, it may be time to shop around and make the switch. An increase in your premium may or may not have anything to do with your driving record – some companies simply increase rates across the board at various intervals. If you end up paying much more than you had budgeted for, it may be time to switch to an insurance company that offers a better price.
#2: Poor Customer Service
There are several auto insurance providers that are committed to delivering exceptional customer service. If you’re dissatisfied with how a certain claim was handled or you had a bad experience dealing with the company’s insurance agent, consider switching to a company that will treat you well.
#3: Inadequate Insurance Coverage
Does your existing policy really provide you with the extent of coverage you need? If not, what options do you have to increase coverage? Some insurance companies only offer a limited amount of coverage options and may not be able to provide you with the full extent of coverage you need. Don’t be afraid to shop around and switch insurance providers to ensure you have adequate insurance coverage.
#4: Buying a New Car
Some insurance providers won’t extend any type of discount when you purchase a new vehicle or add a new vehicle to your policy. If that’s the case, you may be better off shopping around and signing an entirely new policy with a different insurance provider. Get a few quotes so that you can make the most informed decision.
#5: Major Life Changes
If you already have homeowner’s insurance with a company that also offers auto insurance, you could get a reduced rate with a multi-line discount. If you’re getting married, you may want to combine your insurance policy with your spouse’s insurance company to get a discount. Life changes like these can prompt you to switch insurance providers.
Sources:
DMV.org — Reasons to Change Auto Insurance Companies
Cheap ASDA Car Insurance — Top 10 Reasons to Switch Your Car Insurance NOW
Bankrate.com — Switching auto insurance carriers can be a smooth ride