If it's for inadequacy of assistance or lower premiums, there may come a bit when you treasure trove it essential to switch auto insurance companies. This is a common practice and can be done easily as long as you know what to do. Switching auto insurance companies only become a problem if you inadvertently forget a step or forget to follow up for confirmation.
Instructions
1. Not only is it against state law, but you will be subject to hefty fines.2. Contact the old insurance company to cancel coverage. Bind coverage with the new insurance company. Before you can switch auto insurance companies, you must have a new policy in place. If you cancel the old policy before the new one is in place, you will have a lapse in auto insurance coverage.
You can do this by phone or by written correspondence in the form of an email or formal letter. If you cancel coverage via phone, be sure to get a confirmation letter from the insurance company stating that the coverage is being canceled on the date of your request.
3. Provide the old insurance company with the policy number and the name of the new insurance company. Insurance companies are required to report uninsured motorists to the Department of Motor Vehicles. To avoid being reported as an uninsured driver, you must provide the pertinent information to show that you do in fact have auto insurance coverage.
4. Follow up for the return premium from your old insurance company. If you canceled your old insurance policy on a date other than the renewal date, you will be due a return premium. Make sure to follow up for money due you. Be aware, however, that the old insurance company may charge what is known as a short-rate return premium. In other words, rather than prorating the annual premium and returning the unused portion of the premium, the company can surcharge the unused premium by applying a short-rate cancellation factor, which may amount to a 5 percent or 10 percentage surcharge.
5. Replace the old insurance ID cards. If you canceled your old policy mid-year, the auto ID cards will still show the original expiration date. Make sure to discard the old cards and switch them with new ID cards as soon a possible. Often, drivers forget to replace the cards and are left ill prepared in the event of an unexpected auto accident.
