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Switching Car Insurance Providers: What you need to know.

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Are you undecided about whether you should switch your car insurance from your current insurance provider? When doing some research, you may find that switching can lead to better service, coverage or lower fees. Whether you have experienced a change in personal circumstances or are just looking to save money, periodically reviewing your insurance coverage and costs makes sense. This blog sheds light on the most important things to consider when switching your car insurance.

Why Should I Switch Insurance Companies?

Changing car insurance providers shouldn’t be done impulsively. It requires careful research and consideration. Sometimes it doesn’t hurt to shop around to find a better option for your car insurance, one best suited to your needs. Here are the top reasons you may want to consider switching car insurance companies:

  • saving money on your insurance
  • needing different insurance coverages
  • you want to see if you can get a better price on your insurance
  • you are dissatisfied with your current insurance company’s claims service

How to switch insurance providers.

When comparing car insurance quotes, be sure to compare the same features on these policies. Comparing policies with similar coverages, limits, deductibles, and other terms is essential. No one wants to change insurance companies only to find out later that you got a great price, but the coverages are not what you needed or had on your previous policy. An insurance broker can help you compare quotes to ensure you have the right coverage.

Besides cost, take the time to research the reputation and dependability of insurance providers. In today’s digital age, it’s easy to find a variety of customer experiences online for any company. You can start by researching and reading Google Reviews for the insurance companies on your shortlist (for example, here is a link to the Google Business page for Bauld Insurance). You may also want to consider convenience, such as whether you can refer to your policy online or whether there is a mobile app available.

Can you switch insurance companies at any time?

Technically you can do this any time, but switching your car insurance mid-policy may result in termination fees. If there is a penalty for terminating early from your current car insurance provider, you may want to wait until the current policy ends before making the switch. This is one of the biggest pitfalls people face when they skip their due diligence in figuring out how to switch insurance companies.

Staying in your policy until the next renewal isn’t always a bad thing, either. You can use the renewal cycle of the insurance industry to lock yourself into the rates you want until you’re ready to move to a new company. This can be smart if you get into a fender bender or some other kind of minor incident since your rates won’t change until the renewal occurs.

Is there a penalty for switching car insurance?

If you choose to cancel on your renewal date, there’s no penalty; however, if you decide to cancel on any other date, you may be charged an additional fee by your previous insurer for cancelling early. If you plan to cancel outside your renewal date, it’s always a good idea to check with your current insurance provider first to understand any additional costs. Even if there’s a penalty, it may be worth cancelling early if the savings are significant enough.

When should I cancel my old insurance policy?

Cancelling your previous car insurance coverage is the last step in this process. And you shouldn’t cancel until you have new coverage set up. We suggest you cancel your old policy the same day you start the new one.

For more information, please contact one of our Bauld Insurance Advisors, who are ready to help you and ensure you can be confident about switching your car insurance. For additional information, visit our webpage for answers to frequently asked questions about car insurance and to request a car insurance quote.

Additional Resources:

Tips for Lowering Your Car Insurance Rates

How Your Credit Score Affects Insurance Rates in Nova Scotia