How to Switch Car Insurance Companies Smoothly

When you want to switch car insurance from one carrier to another, there are some simple things you can do to make this process less of a hassle. Finding a better rate for a policy is great, but if it comes with a high-maintenance price tag, some of those savings will be eaten up in the effort it takes to make the switch, or in erroneous paperwork details.

A lapse in auto insurance can be an annoying liability, so although it may be tempting to let yours lapse, try to arrange for continuous coverage when you change auto insurance policies.

If you are getting a new auto insurance policy in the same state, do a quick check to see that all of the previous items in your prior policy are equally covered in the new policy, or if not, that the difference is saving you money. If you are getting a new policy out of state, talk about all of the possible differences in policies: do I need uninsured motorist coverage in this state? How does this state deal with tort options? How does this state cover medical riders? All of these things should be part of getting new auto insurance out of state.

Talk to your old auto insurance company about how your premiums are re-calculated when you drop. Any good company should be able to send you a rebate check for the time after you dropped your policy, if your policy was pre-paid. Otherwise, you may have to arrange for specific details. Also ask if you can get an automatic credit to your account or if you need to wait for a paper check.

Likewise, with your new auto insurance, you'll want to go over how much money covers what period of time (1 month, 6 months, etc.) and when it is going to be due. Also ask about direct withdrawal or monthly statement options.