Your experience with your car insurance company may be a good one. But at some point in future, you might have to consider switching to a new insurance carrier. You can cancel your insurance policy anytime you want, and move on to a company which provides better rates and services. Here are six reasons for you to review your car insurance.
Poor customer service
Buying any insurance requires human interaction, help, and advice. Your auto insurance is no different. And that’s why good customer service is vital in dealing with car insurance. If you have problems getting your issues solved, or questions answered, it might be better to consider another insurance carrier. However, be wary. Research the new carrier you’re considering. Talk to friends and family, ask for recommendations and go through reviews from other customers about the insurance carrier you’re considering. Check with the Department of Insurance in your state for the complaint ratio of the carrier.
Life changes. Your situation changes. In that case, you might have to reconsider your auto insurance carrier as well. For instance, if you’ve bought a new house or another car, there may be other carriers who offer discounted premium rates for bundled insurance. In that case, you can cancel with your current carrier and consider another one where you can purchase both homeowner’s and auto insurance. Some insurance carriers also offer discounts for groups and family insurance.
Bad online experience
Just like customer service, technology is also vital for our everyday interactions with an insurance carrier. Therefore, the carrier should be up to date with the latest technology in their website services. If you face frequent problems with online transactions, website unresponsiveness, issues with the mobile app, false claims, or unanswered support requests coupled with poor customer service, then you should reconsider your carrier.
Changes in credit score
Your everyday activities may affect your insurance premium in new ways. When using a financing plan, buying a mortgage or a loan, or opening a credit card account, your lenders can make credit inquiries on you. Every time this happens, your credit score will reduce a little. And all of a sudden, you might realize your credit score has fallen. In that case, even if you’re a good driver, your insurance carrier may increase your rates. To avoid that, you might have to review your carrier as soon as you know about changes in your credit score. You might even get a cheaper premium in a company that weighs driving history more than credit score.
Changes in driving habits
If you’ve moved to a far off place and would have to commute longer in the car, or if you’ve started working from home and wouldn’t have to commute as you used to, then your premium rates would change accordingly. If you find another carrier who offers rates that fit your change better than your current carrier, then it’s best to shift. If you move to a different state, you have to change your carrier to comply with the laws of that state.
Changes in family
If you got married, or your kids have become old enough to drive, then your premium rates will change. In the case of teenage children driving your car, it’s cheaper to add them to your auto policy than getting them a separate coverage. Also, while you add a new driver to your policy (like your spouse or children), your rates may go up based on the new driver’s age, gender, and driving history. That’s when you should consider changing your carrier. If you get better rates and discounts elsewhere, it’s best to shift.
If you find yourself hunting for another auto insurance carrier, don’t feel guilty. Change happens to us all and changing carriers may do you good than harm.
- Have you ever switched insurance carriers ?
- What advice would you give to someone reviewing their car insurance ?
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