Car insurance is one of the important necessities you need to get if you are buying a car or already own a car and do not have an insurance yet. It can also be expensive. But when weighed against the benefits, the expense are worth it. Sometimes, even when you already have an insurance, you will have to change the insurance providers due to various reasons. Maybe you have relocated to a new place and need to consider a new insurance provider. Or, you might have found a new insurance provider who offers you more coverages for less money. The reasons can be many. But there are some things to keep in mind while changing your car insurance provider. Here are the top 5 things to be considered:
Know What You Get!
This is one of the basics, yet one of the most important points most of us forget! Never jump blindly to the cheapest deal you get. Take time to understand the coverage and know exactly what you get. Companies can offer you lower quotes, but the coverage will also be less in most cases. If you are looking for an insurance which offers more coverage than your present insurance, then chances are more than the cost will also be more! Know this simple connection between price and coverage even before you start looking for a new insurance quote.
Such confusions can be avoided to a certain extent by reviewing and matching the features of both your previous insurance and the new insurance you are intending to buy. Compare the deductibles, limits and coverages. You could also send a copy of the particulars of your present policy to the prospective insurance provider and let them know that these are the coverages you have at present and need to have in your new policy too.
Never Leave A Coverage Gap!
When you get a new car insurance policy, take care to avoid leaving a coverage gap. Your new policy should begin the minute your old policy coverage ends. Set your new insurance policy coverage beginning time like that. Leaving a coverage gap can be risky as any accident or damages occurred to the car won’t be covered in that period. Since the old insurance coverage has ended, it won’t cover the damages. Also, since the new insurance coverage has not yet started, it also won’t offer coverage for the damages. Hence, you will be left in a pool and will have to pick the pieces by yourself.
Ensure That You Cancel The Old Policy
Yes! You might end up forgetting to cancel the old policy in the excitement of getting a new policy. Such mistakes can cost you more in future. Hence, always check whether the cancellation proceedings of the old policy are also done in parallel. Simply stopping paying the insurance bills won’t help. Just because you stopped paying doesn’t imply that the insurance got cancelled automatically. You will have to inform your old insurance provider in advance and also get a written confirmation from them that you have cancelled the present policy. If you fail to cancel the previous policy, the insurance provider will keep billing you and you will have to pay two coverage amounts, one the old insurance and second the new insurance. Thus, your credit score can also get affected.
Never Miss Out The Refund Amount!
There can be instances where you might have paid upfront for your previous insurance policy. If you had paid for a seventh-month policy but decided to switch policy in the fourth month itself, then the previous insurance provider will have to reimburse the remaining three month’s coverage costs. There will be cancellation costs also when you cancel the insurance. Hence, you should get the three months coverage costs after deducting the cancellation costs.
If you deserve a refund, then the previous insurance company will usually pay it without creating much fuss about it. Hence, always remember to check whether you are entitled to receive a refund amount. Inform your insurance provider in advance about the cancellation and also inform them about the refunds you are entitled to.
Inform Your Leasing Company
In case you have given your vehicle for lease, then some benefits of the insurance coverage also protect the leasing company. Hence, informing your leasing company beforehand while getting a new insurance and cancelling the old insurance is necessary. Never keep them in the dark about what is happening in the vehicle’s insurance policy. The leasing company is usually named as the loss payee in the policy. Also, when you get the new insurance papers, ask the insurance provider to send the insurance proofs to the leasing company also.
These are the five things to be kept in mind while you change your insurance providers. Make a note of it and take the right decision!