Been sticking to the original car insurance company you signed up with at the dealership? While there are plenty of good reasons to keep renewing your policy with the same insurer, know that you don't have to stay with your current provider if you think you deserve better.
Yes, you can change your motor vehicle insurance provider—it's your right as a consumer. In doing so, you won't miss out on a better deal.
Learn how to change auto insurance companies below.
What are the Benefits of Switching to a New Car Insurance Company?
Over time, your financial situation and car insurance coverage needs both change. You might realize that the service you're getting is not up to par with your expectations. If this applies to you, consider switching or changing your car insurance provider.
So what happens if you change your car insurance company? Depending on the new insurer you choose, you can reap various benefits such as the following:
- Saving money on insurance premiums
- Getting a better deal at a lower cost
- Improving your car insurance coverage by including the add-ons you really need and excluding the ones you don't
- Enjoying improved customer service experience (e.g., more responsive agents, faster and simpler claims processing, etc.)
When Can I Change My Car Insurance Provider?
You're probably wondering, "Can I change car insurance company any time?" The best time is right before your next renewal date.
Automotive journalist and TV host James Deakin recommends waiting for your existing policy to expire before switching to a different provider. This way, you avoid breaching your contract or paying cancellation or penalty fees.
Read more: #AskJames: More Car Insurance Questions Answered
How to Change Auto Insurance Companies
Fortunately, the process isn't as complicated as you might think. Just take these simple steps before your existing policy expires:
Step 1: Assess Your Car Insurance Coverage Needs
Before you shop around for providers, take a look at your current coverage and your needs.
For example, the value of your older model has most likely declined, which could qualify you for a lower car insurance cost. Or you might have a new dog whom you take along on road trips, so you're looking for pet injury coverage.
Consider your deductible as well. Decide if you want to increase your deductible to reduce your premium or keep it as is to save on the repair bill should you get into an accident.
Step 2: Compare Car Insurance Quotes
Perform this step a month or two before your car insurance policy is up for renewal. Ideally, gather quotes from at least three providers to find one that suits you best.
Back in the day, shopping around for car insurance quotes meant calling companies one by one, providing details about your car, and inquiring about the insurance cost. Sounds tedious, doesn't it?
But thanks to technology, all the information you need is right at your fingertips. Websites such as Moneymax allow you to compare various car insurance companies in the Philippines. This online service is free and easy to use.
If you're thinking of changing your car insurance company, it's important to compare the coverage and rates of different providers, such as FPG, Mercantile, and Stronghold.
Here's how to use Moneymax to compare car insurance quotes:
- Go to the car insurance comparison tool. Click Get a quote.
- Provide details about your car and usage.
- Click the Get Results button.
- Enter your personal information. Click the Submit button.
The tool will show you the results, arranged from the cheapest to the most expensive premium. You can also view the coverage and price per coverage.
Remember to look not just at the prices but also the coverage or benefits. Cheap doesn't always mean the best. The right policy for you will depend on your budget, the kind of coverage you need, and the provider's quality of service.
Below is a list of top car insurance companies and their features:
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Step 3: Gather Feedback
After comparing car insurance quotes, you should have a shortlist of providers. But don't commit to a new one just yet. First, you have to get feedback from other clients.
Do your own research—read online reviews on Facebook, forums, and other sites. Ask trusted family and friends.
Of course, avoid dealing with insurers that get consistently bad feedback. But a few negative reviews here and there is perfectly normal, as it's impossible for companies to please all customers. A company with zero complaints is a red flag—those reviews could be fake!
Instead, go for companies with a good number of positive reviews that share how customers are treated professionally and the claims are processed and reimbursed promptly.
Read more: Need a Notarized Affidavit of Car Insurance Claim? Here's How to Get One
Step 4: Choose Your New Car Insurance Company
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Take your time to decide which provider offers a good balance of competitive rates and satisfactory customer service.
Once you've determined the best car insurance company to sign up with, request a quote and the policy. Review the fine print[1] thoroughly.
Step 5: Get the Timing Right
Before you sign on, however, check your policy with your existing provider to confirm its expiration date. As mentioned, it's best to purchase the new policy two weeks before the expiration of your old one.
This way, you ensure continuous coverage. If you meet a car accident during the gap in between coverages, you would have to pay for all the repair and hospital bills out of pocket.
Ready? Contact your agent or broker to discuss how to proceed.
Step 6. Notify Your Auto Loan Provider
If your vehicle is on loan, don't forget to let the bank know that you've switched to a new insurance company. A car insurance policy is a requirement for most car loans. If your policy with your former provider expires, the bank might assume your car is no longer insured.
Read more:
- Where to Pay Your Car Insurance: 9 Convenient Payment Options
- Types of Car Insurance Claims You Can File When the Unexpected Happens
How to Change Auto Insurance Companies: FAQs
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1. How to cancel my auto insurance?
Contact your provider and follow the instructions accordingly. You might have to submit some requirements and pay fees.
2. Can I cancel my insurance policy and get my money back?
You can get a refund for any unused premiums. But note that if you cancel in the middle of your term, you might be eligible for a partial refund only since you were still covered for a time. Check with your provider for more details.
3. What happens if I cancel my insurance policy early?
Simply put, you won't get to enjoy protection against the financial impact of car damage or loss. You'll have to pay for repairs and medical bills on your own.
Final Thoughts
Now you how to change auto insurance companies! But before you start looking for a new provider, evaluate your current needs and circumstances to ensure you find the perfect coverage. With enough research and cost comparisons, you can find a provider that can offer you the best deal.
Source: How to Review Your Car Insurance Policy (The Balance, 2021)
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