Switching car insurance companies painlessly

There seems to be an unsubstantiated fear among consumers that switching between car insurance companies is a difficult ordeal. You can switch to a new auto insurance company at any time, even during the middle of your policy term, but there are a few snags you want to avoid.

With any insurance policy, it’s easiest and cleanest to switch carriers at the renewal date of the policy. This makes it easier on everyone involved because you don’t have to worry about refunding of unused premium or a short rate penalty for cancelling mid-term.

It’s also easier to use the renewal date of your current policy as the effective date of your new policy. This way you don’t have to worry about having duplicate coverage, or worse, a lapse in coverage due to a gap between the expiration of your old policy and the start of your new policy.

Start comparison shopping about 30 days prior to your current policy expiration date. This will allow you time enough to complete multiple comparison quotes, complete the paperwork and obtain your insurance certificates to place in your vehicle. Make sure you have the new policy completed and issued with a firm price before cancelling your current policy. The last thing you want to have happen is to cancel your old policy and find out your new policy rate is actually much higher than you anticipated due to an input error on your part.

30 days also gives you plenty of time to notify your prior carrier that you will be cancelling their policy. If you are moving your car insurance business at the renewal date, you are not required to notify your prior company, but advance notification helps reduce correspondence  from your prior company.

If you get a whim to comparison shop your car insurance today, and your current policy doesn’t expire for another 5 months, there isn’t anything to stop you from switching companies today. Some companies do give small discounts for longevity, but if you already found another company with a lower rate, then the longevity discount is pointless.