Changing Car Insurance
Many people can be lazy when it comes to car insurance and simply pay the bill as it comes in without considering the possibility that other insurers may be offering better deals. Well the car insurance market is increasingly competitive and you might be able to save as much as 40% off of your current insurance bill by simply looking at competitors and negotiating a better premium.
Insurance experts say you should actually shop around for a better deal every couple of years because the car insurance market is increasingly competitive and premiums fluctuate greatly. Your trusty insurance provider may have slipped from providing the best value for money to providing the worst value for money in only a few short years.
Why throw money away?
Here are a couple of things to look out for when changing car insurance policies to make sure you really do improve the value for money you are receiving:
Checkout as many providers as you can
You only buy a car insurance policy once or twice a year and it is typically an expansive purchasing decision. So take your time and explore a number of options.
You should get quotes from at least 5 separate insurance companies before deciding on one, and typically, the more the better. Luckily, there are various websites on the Internet which allow you to do quick comparisons between insurance providers. At the very least, these websites can help you whittle down a large number of selections into a few front runners.
Also make sure you are comparing apples to apples. That is, make sure the policies offering the same or similar levels of liability protection and service. If you don’t have time to do the research yourself, you can always employ the services of an insurance agent!
Get in touch with your current Car Insurance Company
Many insurance companies don’t like letting go of their customers, so will fight for your business. It costs these companies a lot of money to obtain new customers, so they are willing to spend money to retain their existing customers as well.
A quick phone call or email to your current provider, in which you detail what the competitors are offering you and they may very well beat the other competitors! Also consider rolling your car insurance into other types of insurance you have if possible. Contact your home insurance company and see if they will give you a discount for getting your car insurance through them as well. That is called the multi-policy discount.
Make sure there are no penalties associated with switching
In some unusual cases insurance companies have fees attached to people who leave their current insurance coverage before completion of the agreement. So if you decide to end the 12 month insurance contact around month 8, there might be a fee attached.
Consider this fee, and make sure you time your purchase decision properly. It’s a rare case, but something to consider.
Investigate the new insurer before buying in
After getting some quotes, ensuring they all offer roughly the same level of service and narrowing it down to a top 2-3 providers – investigate the company.
Do they have a good reputation? Is it a large company? Do you know anyone who uses the company in question and have they had any problems? Where is the company based?
There are a number of websites where people share their experiences with various insurance companies so you can find out a lot with some quick searching on the Internet.
Having the lowest insurance premium is fantastic, but if the company has a horrible reputation and feedback on the Internet for the company is poor, then they may not be the right choice for you.
Check that the policy dates overlap or match
Double check the start and end dates on both your old policy and your new policy to ensure that there is no gap where you are not insured. Don’t cancel anything until the new insurance is up and running.
When you have canceled the old policy, make sure it is definitely canceled and there are no recurring fees.