How to Switch Insurance Companies
There are a lot of reasons to switch your insurance company. Some of those reasons include the company you are currently using is going out of business, the rates you are paying are too high, or other companies are advertising better rates. It might be that you are with your agency because a trusted friend connected you, but they are now leaving the company. Whatever the reason, switching insurance companies allows you to discover different rates for your premium and possibly better coverage.
When it comes time to switch insurance companies, know that it may not be a lot of fun, but it can be incredibly beneficial. You will want to start by researching different companies and getting quotes for the same types of coverage. This step can save you a substantial amount of money.
The decision to switch insurance companies means you want to take the time and consider your switch. Make sure you are getting the best coverage for your money by following these steps.
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Research the Rates and Companies
As stated above, you want to research the different insurance companies in your area. There are many tools available to you on the internet that will help you shop for rates right from the comfort of your home. You will want to research the best rates to save yourself money in premiums, but you also want to research the company as well.
There are a lot of new companies on the market that may not have the resources or experience to give you the coverage you want should a disaster or accident occur. You don’t want to find out you’ve been shelling out huge amounts of money for premiums only to not have adequate coverage when disaster strikes. Some of the newer companies are not going to be able to back you after an incident and you’ll find yourself without protection.
It will be well worth your time to do your homework and make sure the company you choose will fully protect you and your property. It is not a good idea to just go with a cheap insurance policy if it’s not going to honor and protect you when you need it.
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Check if There are Multiple Policy Discounts
When it’s time to switch insurance companies, it might also be a good idea to put all your policies with one company. Check with the companies during your research if they offer multiple policy discounts. It may provide you more benefits to move all your policies instead of just one. Some consumers report saving hundreds of dollars for switching all their policies under one company, so this is a factor well worth your time to investigate.
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Compare the Coverage Along With the Premiums
When you contact a new insurance company, you want to make sure you are asking for the full amount of coverage needed to adequately protect yourself. When you receive a quote for a monthly or bi-annual premium, you want to make sure you understand the full coverage you will be given.
Many insurance companies can offer you a lower premium rate, but this lower premium comes with less coverage. So when you compare your previous rates, and it is said they will lower your rate; make sure they maintain the same coverage. During your research, you may find companies that can increase your coverage, and still lower your rates. Research is an effective tool to get the best for your money.
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Switch When it’s Right
The best time to switch insurance companies is when your existing policy is about to expire. You should get an update just before the policy time ends, which will include all the information you need to receive current details such as your rates and coverages. This information is useful for you when starting your comparison shopping.
If your existing policy has cancellation fees, you will avoid being charged these if you wait until you are up for renewal. Even if you do not have cancellation fees, you will only receive a prorated amount back on the premiums you have paid to your existing insurance company. These amounts can be weighed against what a new company is offering. In some instances, you will save money no matter what time you switch.
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Check Accessibility of the Insurance Agent
You want your insurance agent available to you when you need them. Part of your research should include finding out how and how easily you can connect with your agent. When an accident happens, you are going to want to speak with your agent as soon as possible. Find out how contact is made, who you should contact, and how easy and accessible they will be for you when you need them.
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Cancel Your Old Insurance Policy
When you have completed all your homework and decided to switch insurance companies, don’t forget to cancel your old policy. Make the request in writing, and ask the company for an official cancellation notice. This cancellation notice should be kept with your records as you may require proof if there are any questions regarding coverage or payments.
Before you begin the cancellation process, make sure your new policy is in place and protecting you. Know the date it will be put into active mode before contacting your old insurance company regarding the cancellation.
Can a Membership or Affiliate Save You Money with an Insurance Company?
There are a lot of affiliates or memberships out there, and one that you are signed up with may save you money on insurance premiums. Some of the common ones include:
- Students
- Some insurance companies offer discounts for students. There may be a requirement for a specific grade-point-average, but the savings are well worth your time in checking. You may also qualify for having taken a driver-safety training course and receive a lower premium rate
- Union Members and Employees of Certain Industries
- Certain insurance companies will provide you a discount if you are part of or a member of a union. Your employer could also offer a discount on insurance as part of their corporate benefits package. Read the small print on your employment contract, or talk with your representative at your insurance company to learn about any possible savings these memberships could provide
There may be other memberships that will provide you a discount on insurance premium rates. If you are actively enrolled in any of them, talk with your insurance agent to learn if the company you’ve chosen will offer a discount on your premiums. Other types of discounts can be given for your driving record.
Who to Talk with About Switching Insurance Companies
KBG Insurance & Financial is a faith-based Christian insurance company that believes in taking care of its clients and their community. We are a 100% independent insurance company with in-depth knowledge of numerous insurance products. With our knowledge of the insurance industry, you are in the best hands possible. Talk to us and learn how to switch your insurance coverage and company.