Car insurance can be invaluable if you are involved in an accident. Your insurance policy will keep you from being held personally liable for accidents and will pay for bodily injury and property damage claims. Without insurance coverage, an auto accident could prove to be finically devastating for many people. Most states have taken notice of this and now require that drivers carry some insurance to operate legally on the roadways. Even though insurance can provide peace of mind and financial protection, it can still be expensive.
How to Switch Car Insurance?
As discussed, some auto insurance is required for many drivers. In most places, state laws mandate that all drivers maintain a minimum amount of liability coverage. These laws are in place to protect all drivers on the road. Liability coverage will pay other drivers’ bodily injury and property damage claims resulting from an accident where you are found at fault. The average cost of liability coverage is around $550 per year. If you want more protection, you will need to purchase additional coverages.
Collision and comprehensive coverage are also known as full coverage because of the protections provided to you and your vehicle, no matter who is at fault for an accident. Full coverage policies also pay property damage claims resulting from non-accident-related incidents such as theft, vandalism, and acts of nature. If you are leasing or financing a car, the lender or financial institution will typically require full coverage until the loan is paid in full. The average cost for collision and comprehensive coverage costs around $1,600.
As a result of insurance rates and coverages, many policyholders choose to shop around occasionally to seek out a better deal. Most people purchase insurance policies for either six or 12 months. At the end of the policy term, it might be good to shop around for better discounts and coverage. Many people don’t know how to switch car insurance policies.
Find a new policy.
If you are looking for lower rates, it might be a good idea to shop around for a new policy. Online comparison tools allow you to receive multiple quotes from various insurers to compare rates, plans, coverages, and insurance companies. Depending on your needs, you can browse for all types of car insurance products. You can purchase the plan once you have found a new policy that fits your required premium and coverage options.
Activate your new policy.
In most cases, you can purchase your new policy directly online. You will be able to sign your documents and set up your payment information through the online portal provided by the insurer. Once you take care of the purchase details, you will be able to print out your proof of insurance. It will be important that you make sure that the policy is active. In some situations, your new policy may become active as soon as you purchase it. Depending on the insurer, however, your policy start date may be delayed. Before you take any further action, you will want to verify the start date of your policy and know exactly when your new coverage starts.
Cancel your old policy.
Once you have purchased your new policy and verified that it is active, you can cancel the coverage with your old insurer. In some cases, your old insurer may want an official cancellation letter. However, other companies may take the cancellation request over the phone. It will be imperative that you verify your new policy start date and align that with the cancellation date of your old policy. This will ensure that you avoid a lapse in coverage. Many states with insurance requirements will impose fines and other legal consequences for allowing your insurance coverage to lapse.
Whether you seek lower premiums or better service, switching car insurance coverage is a fairly simple process. With some research and diligence, you can find a new policy that provides a better rate and the best coverage for your needs.