When changing car insurance companies, it's usually your responsibility to cancel coverage with your old insurer. Your new insurance company can provide proof of insurance to your old company if needed, but it's generally not authorized to cancel a policy with another insurer on your behalf. If you switch your car insurance to a new insurance company, don't assume that your current policy is automatically canceled if you stop paying premiums. Most insurance experts recommend that you contact your current company to cancel your policy when you switch to a new car insurance company.
Once you confirm that your new policy is in effect, you can cancel it with your old insurance company. If you cancel an old policy before a new one takes effect, you could have serious financial problems. If you give good advance notice, you can generally switch providers in the middle of the coverage period. The carrier reimburses the unused portion of the premium, although some companies may charge a small fee or penalty.
Even if you've already decided to switch, you might want to calculate if it makes more financial sense to wait until the policy term ends before making the change. Since car insurance rates vary considerably between companies, one of the best ways to find the right policy is to compare car insurance quotes from various companies. If price is your main consideration when switching, talk to your current insurer to see if it's willing to match your lowest offer before committing to changing car insurance. If you decide that changing car insurance is the right choice, we recommend that you find out if there are any penalties, such as a cancellation fee, for changing car insurance companies before the coverage period ends.
Third, driving without car insurance creates a “coverage gap,” which will cost you more in insurance premiums when you take out a policy. Yes, you can change your car insurance company while you have a pending claim with your current insurer. If you receive a letter from your lender or landlord with proof of insurance, contact your financial institution with the details of your new policy or send the letter to your new insurer so that they can update your policy and provide proof of insurance to your lender. One of the best discounts you can get is when you combine your car and home insurance with the same insurer.
If you change car insurance after your current policy expires, you could experience a lapse in coverage. While you can change your car insurance company at any time, certain events may mean that it's time to start looking for a new company or, at least, to request quotes from other insurers to see if you're getting the best deal and the best coverage to meet your needs. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees, and charges) and policy obligations are the sole responsibility of the insurance insurer. If your car insurance needs have changed or you just want to look for cheap car insurance, here's how to change car insurance companies.
If the accident occurred while you were covered by your previous insurance policy, that insurer must process your claim. You won't be penalized for changing car insurance companies, but you may be subject to cancellation fees, depending on your insurance company. Insurers charge significantly higher rates after a lapse in coverage, so make sure you have car insurance at all times. Yes, it's your responsibility to contact your current insurer and let them know that you plan to cancel your policy when you change your car insurance company.