Switching car insurance companies

With the advent of the Internet it's never been easier for drivers to get an insurance quote anytime of the day or night. Some insurance companies have taken this a step further by offering telephone service 24 hours a day to compete. That means you can get a quote anytime you like. But before you jump from one company to another there are a few things you should take into consideration.

First, look closely at the policy of your new quote. A company might offer you a cheaper rate than what you're currently getting but are they offering the same coverage. If not, is the difference something you can live with? For example, you might save $300 a year with one company but your deductible might be much higher than what you currently have. Of course you can always play the odds and hope you won't have any problems so that the deductible won't be an issue. But if you don't have the money to cover your deductible it might be best to keep searching. In addition to the deductible, also consider such facts as liability amounts and everything else the policy contains.

Second, timing is everything. This is true for auto insurance. You don't have to wait for your policy to expire before switching but it helps avoid paying cancellation fees and waiting on pro-rated funds you paid to your first provider. Watch for your renewal notice. It usually comes in a month before you have to pay it. Take that information and shop around so you have plenty of time to set up a new policy before you cancel the old one. Whatever you do though, don't let your insurance expire before making sure you've secured insurance elsewhere. Not only is it financially dangerous, but it can also affect getting coverage down the road.

Third, ask around about the company you're considering moving to. You might get a cheaper rate, yes, but do you know people that have used the carrier? Was the company a headache to deal with when they had to file a claim? Just because you haven't heard an insurance company's name does not mean you won't get excellent service. But it's best to ask around just to get some opinions. Horror stories circulate about big brand name insurance companies so it's not the name that really matters in the end. It's the service. So ask around and see what you find out.

The best advice when switching auto insurance companies is to just keep your eyes and ears open. With a little searching and legwork you can find a quote, and company, that's right for you.