Some reason for switching auto insurance companies might be dissatisfaction with the service of a company or price of premiums. You might have seen another company that offers better ratio of price and coverage in comparison to what you have. Sometimes you might be moving to another place or simply, purchasing a new car. Keeping these things in mind can do well for you.
Check your present coverage
These days it is easy to compare different insurance companies and their rates. You can start off with your present insurance and go to websites like eQuote Car Insurance to see a listing of other insurance companies in just a few clicks.
Prepare Cancellation Time
The next thing to do is to look at your present policy and see what it says about cancellation. A formal letter is the usual requirement that insurance companies require when you want to cancel. Some companies will readily accept a cancellation with just a telephone call to their company. These companies will just require you to submit a form of cancellation that they will ask you to sign.
The best time to do this is before the renewal of your old policy. This way, you will not have to pay additional charges associated with renewal. If policy has been renewed, the best time to file a cancellation is after the term of payment. If you choose to cancel in the middle of a plan of payment, you will have to wait for a refund for the unused portion of your premiums. In addition, cancellation penalties will take effect if you choose this route.
If you refrain from paying your policy without telling an insurance provider about it, you might risk being cancelled and this has more serious implications. This would mean that you will be given a high risk condition and this will have consequences when looking for your next company. The ultimate effect would be a higher premium.
Getting a policy
It is ideal to have a new policy even before expiration of your old one. This is imperative if you plan to use your car while in the process of changing insurance companies. You do not want to be involved with accidents at this time. Use a car insurance quote to check the lowest prices on car insurance.
The last step is to have a formal application of cancellation. Afterwards you can wait for the response of the company. If this goes unanswered for two weeks, it would be better to call or visit them yourself.