Inertia is an object’s tendency to keep doing what it’s doing. Where Car Insurance in Austin TX, many people suffer from it, despite numerous ads promising significant discounts for those who switch carriers. Although there are a few compelling reasons to shop around, such as purchasing a new vehicle or moving to a different city, reviewing rates and coverage every few years simply makes sense. In this guide, drivers can learn some of the fundamentals of switching auto insurance.
The Best Time to Switch
Although major life changes, such as marriages, force many to think about their insurance needs, paying the annual renewal premium is a frequent trigger for comparison shopping. Depending on where a driver lives, the renewal notice should arrive up to one month before the new term begins. That’s plenty of time to compare, apply, and purchase new coverage before the old policy renews.
Buy Coverage Before Canceling
Drivers shouldn’t cancel their current policies without having new coverage in place. Beyond the increased liability risk, one may expose themselves to severe penalties. It’s a good idea to coordinate the new policy’s start date with the old one’s cancellation date.
Think Before Switching
While a big discount may be tempting, there are other cost considerations to make. Changing carriers could mean giving up loyalty discounts, bundling discounts, accident forgiveness, and other benefits based on one’s current carrier relationship. Some providers have early cancellation penalties, and in those cases, it may be wise to wait until renewal time to make the switch.
Cancellation Steps
Next, it’s time to cancel the old insurance policy in writing. If the policy was bought online, the provider may offer an online cancellation option. Include the policyholder’s full name and address, cancellation date and reason, the new insurance carrier’s information, the new policy number, a signature, and the date. Although it may seem inconvenient, it’s a good idea to send the cancellation request via certified mail.
Verify Cancellation
Premium nonpayment won’t cancel a current policy. Drivers should be proactive about cancellations; if they don’t receive a written confirmation before the policy renewal date, call to verify that the old policy has been canceled.
Changing carriers for Car Insurance in Austin TX is every driver’s right, and doing it correctly can save time and money. Click Here for more information or call today to request a quote.
