Switching providers doesn't have to create headaches

Changing Auto Insurance Providers

While some people will stick with the same insurance company their entire lives, there will certainly be some that are going to switch providers. If you fall into that group, consider the following helpful tips to ensure this process goes off without a hitch:

Find out if you’ll be charged a fee

If you are going to cancel a policy that has not yet expired, Autos.com recommends contacting your provider first, to find out if you are going to be charged a fee to do so. Depending on how expensive this fee is, you may consider waiting to switch, as it could cancel out some of your savings by switching providers. If there is a fee, it may not be a bad idea to ask your provider if it can be waived, but there is no guarantee this will happen.

Consider your coverage options

When it comes to changing insurance, it’s generally a good idea for drivers to acquire their new policies before canceling their current ones, so as to prevent a lapse in coverage.

Also, it is important that you aren’t afraid to ask about a potential refund, according to DMV.org. If you have several months remaining on your current plan, you may be able to get any unused premium back when switching. Depending on your provider, they may not be required to make these funds available because of the terms of your insurance agreement. However, it doesn’t hurt to ask.

Browse quotes for insurance online

You don’t want to cancel your current policy without having a new one in place, and the internet is a great place to find a new plan. Being able to compare quotes from multiple providers in the comfort of your home can save time and money. However, you need to be sure that you secure the coverage you need, as a price that seems too good to be true, may be a policy that only comes with limited protection.

Unlink your bank account

Many insurance providers give you the option to automatically deduct payments from your bank account. If you chose to do this for your past plan, it is important to unlink your account after switching providers. You shouldn’t be charged either way, but it is better to be safe than sorry, and take the time to complete this process.