For people who are planning to switch to another car insurer, then read on.
There are many reasons why you need to change your current insurer. The service is not that great, and you felt that your insurance agent has tricked you. Or another insurance company is offering irresistible and better deals for a much lower premium Moving to another state could be your reason, so there is no point of maintaining the said contract, or you just need to get rid of the car, and you are looking for a buyer.
You see, there are numerous reasons why people want to hop from one insurer to the other. Switching is legal and you can do that but one thing to keep in mind is to send advance notice to your insurer about your intention of cancelling or transferring the said policy. Avoid penalty and unnecessary bills.
It Is Not Entirely Automatic
Did you know that insurers are not going to cancel your policy simply because you stopped paying for it? Well, nobody can blame you because many people think that too. What insurers normally do so is to send a report to the credit bureaus giving you the dreaded black mark. Credit bureaus are very efficient when it comes to recording keeping, and you know how a bad credit score could affect the rates of your insurance premiums. If this happens, you could be facing a difficulty in getting a good coverage with a reasonable price. At all times, you should avoid making a gap with your insurance payments, and you can do this by simply notifying your insurer.
What You Can Do
You do not need to do fancy things when notifying your insurer with your intention of cancelling the policy as soon as possible. Upon receiving, your insurer will send you the cancellation form via email or post. Simply fill out the form and return. If there are fine prints at the back, read them very carefully. You just do not sign papers without understanding them. Read the terms and call your insurer if something is vague to you.
Do not drive the vehicle unless you are sure that the transfer is complete. This is important in case you are being pulled over by an officer. Additionally, you could be facing serious fines if you are caught in an accident. Again, the process is straightforward and needs simple coordination between your previous and new insurer. Normally, the termination date is the same date for the new policy to take effect - but do not take this for granted. Make sure everything is recorded in case problems occur.
Changing Vehicles. What About It?
If you are planning to sell or trade your old vehicle for a new one and to insure it with a different company, you would still need to send notification to your previous insurance provider. Tell them in advance, even if you are not planning any switch at all.
If you prefer to stay with your current insurer, they will be able to help you with the transfer of policy from the old to your new vehicle. Again, the basic factors for insurance computations are considered such as the model and make of your new car, the mileage and its overall condition.