If you are a car owner and have a car insurance policy, you might have thought of switching your insurer at least once. Lower costs, additional features, and moving out of the province are some of the leading reasons for switching insurance providers, but you must do your research and keep in mind certain factors to ensure a smooth switching experience. Here’s what you must know before switching car insurance providers:
Carefully review the features
Do not jump up to grab the lowest quote you find on the Internet. Do your research and carefully read the fine print before signing the dotted line. Take your time to understand the features and benefits included, and weigh the pros and cons before making a decision. Certain companies have a low rate of interest for low coverage, so be careful when switching providers. For an easier experience, you can let your insurer know the coverage and features you’re looking for and let them provide you with options.
Timing is everything
Research new car insurance quotes and features at least a month before the renewal date so that you have plenty of time to understand and analyze your options. Also, if you change your insurer before the due date, you may be liable to pay penalties. If you think switching car insurance providers a month after your previous policy expires is smart, think again. What you must know before switching car insurance providers is that people with a continuous track record tend to get lower quotes than those with a gap between their policies. So, it’s best to switch on the very date a contract ends.
Get your unused coverage refund
If you need to change your insurance provider due to urgent reasons like moving out of the city, your current insurer will label it as “prorate” or “short-rate.” Under prorate, you will be refunded the total premium amount that you did not use. For instance, if you opt out of a 12-month policy after 7 months, you are entitled to receive a 5-month refund. In short-rate, the insurer may charge a penalty for quitting before the due date, but you may consider making an early switch if the fee is not large.
Consider the longevity discounts
If you’ve been with a particular car insurance company for a few years, switching will make you lose your longevity discounts and other deals. If you also have your home insurance with the same company, find out whether that rate will also be affected. Would it be wise to switch both insurances then? If you’re getting a huge discount and a better deal with a new insurance company, you could end up saving a good amount of money. If you’re wondering what you need to know before switching car insurance providers, avoid any last-minute surprises and familiarize yourself with the terms and conditions of a policy before switching.