What To Do When Switching To A New Auto Insurance Provider

Have you taken a long look at your insurance bill and decided that you need to make a change? If so, you may try to switch to a new auto insurance provider to get a lower monthly premium. Before you make a decision on who you are going to go with, you'll want to think about the following three things.

Understand Your Insurance Billing Cycle

You will want to look at your policy and understand how your insurance billing cycle works and when you can cancel. For example, you may have premiums that are paid monthly, semi-annually, or annually. Every insurance company can handle the billing cycles differently, and there may be consequences to canceling early.

For example, your insurance provider may have you locked into a contract to provide insurance for a specific amount of time, and there will be feels if you cancel early to switch to another provider. This means that you need to time when you switch insurance providers to avoid any fees.

Other insurance providers may not have a contract. In that case, there is no need to worry about those premiums you've already paid for upcoming months of insurance. You will be able to receive a check for the prorated amount of insurance that you did not use. You won't lose money by switching providers, since you will have only paid for the exact amount of insurance that you used.

Don't Forget The Discounts

If you are looking for an auto policy, you may have to look for a new homeowners or renters insurance policy too. It is common for insurance companies to offer a discount for combining multiple policies with the same company.

When you look at your statements of your current auto insurance and make note of the total amount of discounts you receive by having multiple policies. You must factor those into the price of any new policy that you look at. If necessary, receive a quote for other insurance policies that you can take with you, and see how the total cost compares.

Don't Let Coverage Lapse

Don't make the mistake of letting coverage lapse when switching insurance providers. If one policy is close to renewing, you may be tempted to let it lapse while you get your new policy line up. Any days between coverage is time when you do not have protection, which means paying for damages out of your own pocket.

Contact a company, like Ahlquist Insurance, for more help.