How To Change Auto Insurance Companies

Do you need to change auto insurance companies? Have you found a great rate on auto insurance, but you need to change to a new carrier?

There are many reasons you might want to change your auto insurance carrier. Maybe you're getting rid of your car, moving to another state, or maybe you're just not satisfied with your currant auto insurance company's service. If you don't give your insurer sufficient notice, it may cost you money, or negatively affect your credit history.

Most auto insurance companies allow you to cancel your policy any time during the policy term by sending written notice to your auto insurance company stating your requested date of cancellation. Your auto insurance policy doesn’t necessarily terminate at the end of each policy term. It’s not safe to assume you can cancel by not paying your next car insurance bill. If you don't send written notice of cancellation, your insurance company will automatically bill you in advance for the next term's premium payment. If you don't pay the auto insurance bill, your insurer will cancel your policy, and it will go on your credit report.

This information may not be easily understood from your auto insurance policy. While auto insurers clearly state your coverage will terminate at the end of the policy period if you don't pay your next premium, they don't always let you know about all the repercussions you may face for not giving formal written notice of your policy termination.

Also, allowing your auto insurance policy to be canceled may harm your chances of getting auto insurance coverage in the future. A cancellation in your auto insurance history may cause auto insurance companies to consider you as a high risk applicant. This may give other insurers an excuse to charge you higher premiums. You can avoid this trap by officially terminating your policy in a timely manner. Remember, send formal written notice of cancellation.

Here’s How to Cancel Your Policy

Call your insurer, let them know you want to cancel your auto insurance policy and give them an effective date of cancellation. They’ll send you a cancellation request form - review this form carefully before you sign and return it to your insurer. Double check the form after signing to make sure everything required is filled out.

If you're changing to another auto insurer, and you plan on driving your car throughout the process, make sure there is no lapse in your auto insurance coverage. Be sure to coordinate the effective starting date of your new auto policy with the termination date of your old auto policy. Don’t go one day without insurance. You never know when you might have an accident.

Make sure to give your insurance company enough notice when you want to cancel your auto policy. Once again, you need to send formal written notice of cancellation to the insurance company including the effective date of cancellation. Shop and compare auto insurance quotes.

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