4 Reasons to Switch Your Car Insurance Company

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Car Accident
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The good thing about car insurance is that you can switch companies as often as you like. You don’t have to continue with a company after their terms become unfavourable or after you discover an insurer with a better deal. This article highlights some of the key reasons why many people switch car insurance companies often.

Cost

There is no standard cost for car insurance; each insurer sets their own price. If you request quotes from five different companies for the same coverage, you will have five different values. You can switch to a new insurer when the current one increases their rates or when you find a company with a better rate. Shifting to an insurer with a lower rate may not save you a fortune, but the little you save can help in paying loans faster, accumulating travel funds within a shorter period, or even boosting emergency savings fund.

When shifting to save money, consider making use of sites such as CompareNi.com to get multiple quotes and make comparisons. You should compare as many quotes as possible before making your final decisions. CompareNi.com is a self-funded independent comparison site for various financial products which makes it a highly popular choice.

However, don’t make your decisions based solely on the price. Take into account other factors such as reputation, financial standing and quality of their services. Scammers and poor service providers often use low rates to attract car owners. Thus do your evaluations well to avoid falling for such tricks. 

Poor Customer Service and Poor Company Reputation

Delayed response, rude answers, an unwillingness to negotiate, ignored calls and emails, and shallow information are some other key reasons for changing your car insurance company. Car accidents and other bad incidents can be tough to handle. An insurer who won’t respond on time or one who takes forever to process claims will only add to the stress. If you have had such experiences with your insurer, do a careful evaluation when changing companies to avoid falling into the same hands. Talk to the insurer directly to see how well they handle clients and also check reviews written by car owners who have used the services before. Be on the lookout for complaints regarding claims payment.

Change in Your Driving Circumstances

When you buy a new car, move to a new county, or add another driver, the insurance company may review your policy. Your rates may go up or you could even get some exclusions. If you don’t like the new changes, you can always change the insurer.  When moving house, where you park your vehicle may also cause your payments to increase or decrease, so it is always worth checking for quotes.

No Benefits

Car insurance companies offer benefits to their customers as an incentive to keep them from leaving or even to encourage safe driving. Examples of key benefits you can get from an insurance company include discounts for safe driving and safety features for the car, low rates for remaining with a company for a long time, and discounts for insuring multiple vehicles or taking different covers with the same company. Insurers with minimal or no benefits end up losing their customers to insurance companies with a number of benefits.

For some factors such as cost and benefits, consider talking to your insurance provider before moving to see whether they would be willing to negotiate. When you make a decision to move, think everything through well to avoid issues later. Check the cancellation terms for your current cover and the cancellation fee you will have to incur. Most companies will require a notice before cancellation. For refunds, some insurers may refund the amount you paid upfront whereas other will not. Checking the cancellation terms should be the first step you take when changing your auto insurer.

How to Look for a New Provider

After you have taken all this into consideration, start looking for a new insurance company. To avoid switching companies too often, research wisely when looking for a new company. The benefit of staying with one company for a long time is that you may receive a discount for long term customers. Look at the cost, reputation, availability, customer service, online presence, benefits and financial standing. Once you find a favourable insurer, read through their document thoroughly. Don’t get too excited about the new rates that you overlook the little details in the policy document.

There are two key mistakes you should avoid when changing your car insurance company. One, avoid gaps in coverage. Don’t cancel your current insurance cover before you find a new one. If you get into an accident and have no active insurance, you will have to pay for the injuries and damages out of your pocket. Also, driving without insurance is illegal and you can get penalised for that. Two, don’t forget to cancel the old policy even when you are switching companies at the end of your old policy’s term. Cancellation is easy, as all you have to do is fill in a form or write a request letter.

If you have been with the same insurance provider for years, perhaps now is the time to switch!

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