How to switch car insurance companies

Though distracted driving has risen  with mobile technology use, it's development has also helped to neutralize the activity.

Change can be tough but it can also be a good thing. When it comes to switching auto insurance companies, there are a few things you can do to make the transition a little easier:

Make sure your new policy is up and running

Before you make “the call” to your old insurance company, verify with your new insurance carrier that your new policy is approved and active.

Verify the effective date

When you are on the phone with your new company, also verify your new auto insurance policy’s effective date. You don’t want to overlap (why pay twice for the same thing) but the last thing you want when switching insurance companies is a gap in your coverage. Even if it’s just one day of no coverage, remember Murphy’s Law: “Anything that can go wrong, will go wrong, especially when you don’t have an active auto insurance policy.”

OK. We added that last part.

Make “The Call”

Once you’ve verified that your new policy is active, call your old insurance company. There’s no need to get emotional. They aren’t going to yell at you. You aren’t breaking anyone’s heart. It’s strictly business, and people change insurance policies all the time.  Once you get someone on the line, no matter what the reason is that you are switching insurance companies, be professional and simply tell your old carrier that you want to cancel your policy.

Even if you aren’t happy with your soon-to-be-former insurance company, you need to notify them. If you don’t, they’ll eventually cancel your old policy for non-payment and could report you to credit agencies, which is always a bad thing.

Your old insurance company may have some specific instructions for cancelling your policy. It might be a phone-only cancellation process or you may have to sign something. Either way, do whatever they ask. Before you hang up, verify that your policy will be cancelled and document the effective cancellation date.

Ask about a refund

If you switch auto insurance policies at the end of your current policy’s term, you might not be eligible for a refund. However, if you paid in full or there are several weeks/months left before your next scheduled payment, you should ask for a refund.

Make the other calls

It depends on where you live or what your situation is, but you may need to notify a few other important people regarding your recent auto insurance switch. Your state’s department of motor vehicles may require that you notify them of any changes to your insurance coverage. Also, if you are still making payments on your vehicle, your lender will definitely want to know about your new insurance policy.

Switch to the herd and see how much you could save!

If you’re looking to make an auto insurance switch, give us 10 minutes of your time and get a free car insurance quote online or by calling 1-855-ELEPHANT. We’ll help you find the car insurance you need at a rate you can afford.