How To Make Changing Car Insurance Providers As Stress Free As Possible
Unhappy with your current car insurance? Found cheaper car insurance elsewhere? Here are five helpful tips to help you move to a new provider quickly and easily.
1. Read The Small Print
Before you decide to ask another company the question, “how much to insure my car,” read the small print of your existing contract to check for cancellation penalties. If you cancel mid-term, ask your provider about their refund policy. Some insurers ‘pro-rata’ and pay back any unused premium, whilst others charge short period rates, which means they take a penalty because you asked for a cancellation before the full term was up. Think about whether the savings you hope to make cancel out any financial forfeit. If not, and you opt to remain until the end of your current insurance term, make sure you let your provider know that you will not be renewing so that they don’t automatically charge for another year via direct debit, pulling you back into another fixed term.
2. Shop Around
Once you are clear about any existing ‘get out’ clause, you can start to shop around. Keep two things in mind. Firstly, you want to know how much it is to insure a car like yours, and what you might expect at a competitive premium. Secondly, you need great service and claims handling. One is no good without the other. After you have researched potential insurance companies and are happy with their service reviews, ask for quotes based on a consistent level of cover. That way it is easier to compare like for like.
3. Making The Switch
Only cancel your old policy once you are happy that your new policy is active and that the premium is what you expected. Companies often say they only need to take your instruction over the phone, but make sure you back your request up in writing. You never know if you may need proof of cancellation later on.
4. Mind The Gap!
It is especially important to ensure that there is no gap in your insurance. It is unlawful to drive a car whilst uninsured. There’s no point agonising over “how much is my car insurance costing me,” if you have an accident on the one day when you have let your old policy lapse before starting a new one!
5. Finally, Think About This
How much does car insurance cost? The answer doesn’t lie in the monthly premium alone. Whatever you do, make sure you consider all the options.
An insurance policy is, essentially, the purchase of the promise to pay in the event of a loss. The cost of the promise isn’t as important as who is making that promise.
