How to Switch Auto Insurance Companies More Easily

There are many reasons you may want to terminate your existing auto insurance policy. Perhaps you got a new job and have to move to a different state. Maybe you’re selling your car. Sometimes you may be fed up with your current insurance provider’s poor performance. Ending your service can be tricky, though. Without giving enough notice to your insurance company, you could end up spending more money, or even lowering your credit score!

Most insurance companies will let their customers terminate their insurance coverage at any time during their policy term. They usually require a written notice indicating the date of cancellation be sent to them. You can’t assume your insurance ends when your policy term ends, either. Skipping the next bill could have major consequences. Insurance companies usually will bill you automatically for the next premium payment when your policy runs out if you don’t send them a notice of cancellation. If you don’t tell them you don’t want their coverage anymore, they’ll assume you’re sticking with them! They will also note it on your credit report if you skip a payment, and most often will cancel your policy, leaving you without proper coverage.

Insurance companies are often upfront about the fact that your auto insurance coverage ends when the policy term is over. However, those same companies don’t always tell you of the consequences you may have to endure if you don’t give formal policy termination notice.

You may also negatively affect your chances of future auto insurance coverage if you simply allow your policy to be canceled, rather than canceling it on your own. A company-side cancellation goes on your insurance history, and could get you labeled as a higher risk applicant in the future. This could lead to higher premiums later on, or even cause you trouble obtaining any coverage at all. Taking the time to send a written notice of cancellation can help keep your future premiums low and your insurance history clear of negative records.

Canceling your insurance policy is no great trial. All you have to do is call your insurance company and inform them you wish to cancel your policy, and the date you wish to terminate it. They will provide you with a cancellation request form. Thoroughly review the form, sign it, and then send it back to your insurer. It’s also wise to make a copy for yourself before returning it, just in case the form goes astray somehow. It’s as easy as that!

When canceling an insurer, though, you don’t want to be caught without coverage! It’s essential to have auto insurance because state law requires it, and you don’t want to be face with massive out-of-pocket costs in the event of an accident. So make sure there’s no lapse in your coverage period if you’re switching from one insurance company to another. Talk to your new insurance company and make sure your new policy starts at the same time your old one expires. Driving without insurance is unsafe. Even if you’re the most cautious driver on the road, you can’t control the other drivers!

You can avoid negative consequences when switching companies by being considerate to your current insurer. Give them notice upfront that you’ll be terminating your policy, and follow through with their cancellation process. With a little time and effort, you can easily avoid future insurance problems and keep your coverage constant. Happy driving!