How To Change Auto Insurance Providers

So, you've shopped around, studied your insurance options, and decided to go with a new carrier. But, don't just close the door and walk away―there's a proper way to say goodbye to an insurance company.

 

1) Be Ready With Your New Policy

Make sure your new carrier has approved your application―and you've paid your initial premium―before you do anything with your current provider.

 

2) Set an Effective Date

Talk with your agent or carrier to establish a firm starting date for your new policy; it's best to begin it the day after your current policy ends. You don't want to leave yourself without protection for even a single day, but you also don't want to overlap coverages.

Simply put, there's no advantage of doing so: You can't collect on the same claim twice, and you'll likely antagonize your former and new carrier in the process.

 

3) Notify Your Carrier

Even if you've had a negative experience with your current insurer, tell them you're canceling your policy. If you don't, they'll continue to bill you, and perhaps bother you with calls or e-mails. Eventually, they'll cancel your policy for non-payment, which could surface on your credit history report.

 

4) Follow Their Instructions

For some carriers, a phone call to your agent or a customer service representative is a sufficient way of communicating you're leaving as a customer. Others, though, might ask you to sign a document stating that you're canceling the policy. Just comply with your provider's wishes, and be finished with the process.

 

5) Ask for a Refund

Most consumers simply wait until their current coverage is set to expire before switching policies. However, if your existing policy has several weeks or months of protection remaining, ask for a return on your unused premiums.

 

6) Clean Up Any Remaining Issues

Depending on your situation, you might need to address some other matters.

You must alert your state's motor vehicle agency about the insurance change, unless your new carrier will do it for you. Don't overlook this important detail, or you'll hear from the agency.

And, if a lien exists on your vehicle, make sure to notify the lienholder about the change, too.