Reasons to Change Auto Insurance Providers

Purchasing auto insurance is not a luxury; it’s the law. However, there is no law requiring you to stay with a certain provider for a certain amount of time. The industry is highly competitive so if you’re in the market to switch you might be able to find some excellent reasons to follow through with that choice. Here are some of the best reasons.

Moving Out-of-State

If you are going to be pulling up your roots and heading to another state, this would be a good time to consider making an auto insurance change. Clearly, you’ll need to change agents anyway. Plus, states’ insurance policies vary so shopping around in your new state may end up getting you a better deal from a different company. Changing will also ensure that you have the appropriate coverage for the state in which you are now a resident. You do not want to be caught being underinsured.

Needing Lower Costs

While auto insurance premiums can be fairly pricey, you might be surprised at how much less you can pay if you shop around a little bit. Even if you’ve only had your current insurance for a year or so, rates change drastically and quickly in the industry so the companies can stay competitive. Shopping around for a lower price won’t cost you anything except a little time but you could significantly reduce your premium amounts.

Wanting to Add Other Insurance Products

Typically, auto insurance companies will offer you discounts if you add other types of their products to your policy through a single agent. For example, if you have homeowners, life, and auto insurance through a single company, you’ll be able to shave some money off those premiums while also having the convenience of paying only one bill instead of three. However, if you’re going to be adding another product, shop around to see if you couldn’t find a better deal on all of your coverage elsewhere.

Receiving Bad Service

You should never put up with poor service from your auto insurance company. There are so many different agents and companies out there who would appreciate your business that allowing someone not to give you the respect you deserve as a consumer is wrong. And remember this is a company you’ll need to rely on at one of the most stressful times of your life so you need to feel as if you can rely on them to be there for you. No matter how low your rates are you can find affordable rates elsewhere while also getting decent service.

Increasing Rates

If your auto insurance rates have gone up recently, this could be a good time to start changing providers, too. Now if your rates are increasing because you’ve had accidents or moving violations recently, you may not be able to find a better rate elsewhere. However, if your rates have gone up despite a safe driving record and paying your bills on time, you should shop around to see if you can’t find a better rate from a competitor. Even the threat of cancellation might cause your current provider to re-think that increase.

Getting No Discounts

Considering the vast number of auto insurance discounts that are offered by most companies, if you’re not getting at least one or two then you need to change providers. As you may already know, your rates automatically decrease after you turn 25 but you should also get a discount for having a safe driving record for the last 3 to 5 years. If you have safety features in your car, such as air bags, or security options, such as a security alarm, these could net you a discount, too. For people under 25, good grades in high school or college and completion of driver education programs should also equal discounts.

Changing Situations

Any time your auto insurance situation is changing, you should at least consider switching auto insurance providers. For example, if you are about to pay off the loan on your current car, then you might want to drop your full coverage and switch to the state minimum. If you get married or divorced, you should shop around. If you are buying a home, you should shop around, too. Some auto insurance companies will even offer discounts if you are a home owner on the belief that you will be a more responsible driver.

Adding a Teen Driver

One of the biggest situation changes that will definitely have an impact on your insurance coverage is adding a teenage driver to your policy. This is definitely going to cause your rates to go through the roof. However, that doesn’t mean you won’t find an insurance company that will charge less than the others for an equivalent amount of coverage. Some companies offer steeper discounts for drivers who have high grade point averages, for example, than others.

Wanting Benefits Provided by Other Company

Sometimes the best reason to change is simply because you want to. If you’ve watched auto insurance companies’ commercials, you’ve probably had your curiosity peaked by some of the coverage options provided, such as coverage for pets who are involved in your car accident. When you see something that you’d like to have in your policy, make the switch if you like the price.

Trying to Add More Coverage

Finally, if you’re not happy with the coverage amounts in your current auto insurance policy, that might be another excellent reason to change providers. Have in mind the coverage amounts you want before starting to do your comparison shopping.

March 16, 2009, Posted by Rainy Day Mitch