Did you know you can change your auto insurer any time even before the renewal period? Not many people may have this awareness that switching an auto insurance company can help them save a significant sum on their premium. You may have to pay small cancellation charges as per the terms and conditions of the existing policy. But if you switch, you can expect to bring down your premium cost earlier than before. It is possible because insurance premium rates keep changing from time-to-time. That’s why the company that offered you the best price in the past may not be as lucrative as the other one, which you approach now.
It doesn't mean that a low premium has to be the only motivation behind this. You can consider this option if you are not enjoying the customer service of the current insurer or the other company promises to provide you better perks and benefits, such as gap coverage, roadside assistance for free, etc.
Best time to switch to the new car insurance company
To save money on car insurance, it is always better to search for better prices frequently. For example, if the current company is the best for single drivers, you can look for a company that offers exciting deals to spouses, particularly when you are planning to marry. There can be other circumstances also. Whether you want to add or remove your teenage child from the policy or relocate to a different place, you can think about this. Even if you buy a new car, you don't have to continue with the same insurance service provider. You can shop around for cheaper car insurance for higher savings.
Hence, as you can see, it is more about the circumstances than the time. People who had to agree on higher premium rates due to driving violation or involvement in a car accident can keep looking for options where lower prices are possible. Checking every six months can come to their advantage. However, it is essential to note every company can have its policy around this. One insurance provider can stop taking higher rates for at-fault driving after five years, while the other can implement this just after three years.
If you have an open claim, you may wonder what would happen. Well, you don't need to worry about the penalty or anything like that. The existing insurer will cover the damage even if you subscribe to some other insurance company. However, until the claim gets cleared, you will be dealing with two auto insurers at the same time. If this is too much for you, then it's better to wait for the claim to get over before shifting to a new insurance plan provider.
Point to consider when switching a plan
As mentioned, there is no best time for shopping for a lucrative deal on auto insurance. But if you had any latest brush with a car accident or got a speeding ticket for a traffic rule violation, you may have to wait for a little. These incidents can affect the chances of getting affordable rates. Nevertheless, if you stick to the old company, you may have to pay revised rates only after the renewal. So, it makes sense not to change your car insurance immediately after an accident.
These are only one of the many ways that you can utilize to cut down your insurance cost and to ensure saving.