STEPS NEEDED TO CHANGE THE CAR INSURANCE
You could save hundreds of dollars by changing your car insurance? Is a question worth asking yourself at least once a year. Doing a little research now, you might be able to find comparable insurance plan at a better rate with another company, and save money. However, you should make sure to take adequate measures to pass because they do not want to have a lapse in coverage.Jeanne Salvatore, senior vice president at the Insurance Information Institute in New York, suggests asking if you are satisfied with the cost, coverage and maintaining its current policy each time it expires. "If the answer is" yes, yes and yes, then stay with them. But if you're not sure is a good opportunity for all, "he said.Here are four key steps to be taken for switching car insurance:
1. Check your current driving situation.
Take note of your driving situation and the needs of other drivers in your home. Do you have a new car model?Do you travel several miles to work each week? Do you have all recent traffic tickets?According to the National Association of Insurance Commissioners (NAIC), your insurance company again possible may ask you to these issues as part of the underwriting process. It is also likely to be asked about the number of drivers on the policy, license information and insurance coverage and limits of your controller you want to purchase.Take a look at your existing insurance policy car. Knowing what you currently have, it will be easier to make apples to apples comparisons with the rate you receive from different insurance companies. An easy way to do this is to study the declarations page of your current policy, said Vaughn Graham, company president Rich and Cartmill safe in Tulsa, Oklahoma."The declarations page describes the insurance you have, including the amount of coverage and limits of coverage and the amount of your deductible," he said. When you are better informed about your current coverage, you can help be a smart consumer.
2. Shop around.
Once you are familiar with its current policy, it is time to look for alternatives. A good first call is your current insurance agent or the insurance company itself (some insurers like Geico and Progressive do not work with agents). Even if you are not satisfied with your current policy (if you think that premiums are too expensive, for example), ask if there are ways to reduce their rates for the same amount of coverage, Salvatore said. You may be eligible for discounts that you are not getting.Here is a list of common discounts insurance companies, according to the NAIC:
Safety devices that are in the car, such as anti-theft devices
Having a good driving record
Drive a few miles per year
Have several cars on the same policy
He is a student who gets good grades
Make sure your home and car with the same provider
In reviewing discounts, note that the transition to a new provider can affect the discounts that already has with other types of insurance. For example, if you are receiving a reduced-car owner's policy and your current provider, and then type auto insurance to another company moves, you may lose the discount you receive for insurance owner. You can sense more economical to stay where you are, or spend two policies to a new provider that will give you a reduced rate for both.In addition to talking with your agent or insurance company present your options, you can search online to research potential companies and get quotes. It is also a good idea to get referrals from family members, colleagues and other people you trust, Salvatore said. If they had to file a claim with the insurer, they could tell you in person about your customer service experience.If you're buying through an independent agent who represents several insurance companies, you have some options."You can go to them and say," I am happy to work with you, but I'm not so happy with that company "and why," says Salvatore. "Ask if they can suggest another company."A good agent should be able to offer customized options to meet your needs, adds Graham. "There is no one size fits all solution. We are all a little different."
3. Do not skimp on coverage.
As you get quotes, make sure the insurance coverage and deductibles mentioned are satisfactory. The fact that a contribution may be less than what you pay at present, this does not mean it's a better deal if coverage is lacking, says Graham. If you are unsure of the amount of coverage you need, discuss your needs with representatives of insurance companies, and ask for advice.For example, if you have significant assets, you may need more than the minimum of State liability for bodily injury insurance. The same is true for coverage of property damage. The selling price of an average new vehicle could easily exceed $ 30,000, but in many states, damage coverage required minimum is only $ 25,000. If they were responsible for a loss and not having enough insurance coverage, it would probably be on the hook for the difference. "Many of these limitations are often inadequate and not close enough to meet the exhibitions at today's price of vehicles," Graham said.While it is important to have adequate liability insurance if you drive an older model that is paid vehicle, you can opt out of some optional types of coverage, such as collision and comprehensive insurance to keep premiums low.Collision insurance pays for physical damage to your vehicle receives when it collides with another object, like a tree or another car. Comprehensive coverage pays for damage to your vehicle by causes other than collision. This could include vandalism, broken windows, fire and theft. If this cover is more than your car is worth, you can go to lower their rates. Just understand that you then pay for the losses of its own funds in the event of deterioration. People living in areas prone to natural disasters such as floods, high winds and earthquakes might want to think about keeping their full coverage, experts say.Another way to get a lower premium is to ask for a higher deductible. If you are willing to pay $ 1,000 for a claim pocket instead of $ 250, you could reduce your rates. But make sure you can pay the higher deductible if you have an insurable loss.
4. Inform your old and new suppliers.
After doing all your research (and with a little luck), it is quite possible to find a company that offers good coverage at a lower rate. You may be willing to change, but before the signing of a new agreement, call your insurance department whether the company is licensed to do business in your state. You can also check rating agencies A. M. Best and Standard & Poor verification of financial stability of the company. (Standard & Poor requires a free registration before you can view the ratings of the company.) It's worth the extra time to pass before you agree to pay hundreds of dollars on a new policy.Once you have verified that the new provider can do business in your state and seems financially stable, it is time to make the change. "When you are ready to cancel your current policy that all parties know in writing so that there is no gap in coverage," says Salvatore.If at the end of your existing insurance policy car before it expires, you may receive a partial refund of the premium under the terms of his contract. However, you must continue to pay your old policy until the new cover is confirmed in writing. Otherwise, the old policy could be abandoned for failure to pay before the start of the new policy. And in most states, driving without proper insurance coverage car is against the law. "It may be easier to wait and have your policy start again when the old one expires," says Salvatore.Make it a priority to check your insurance policies on a regular basis. home driving conditions often change, and so do state laws that might affect the price of your premiums. By taking a little time each year for research auto insurance, you can make better decisions and pay the best price for the best amounts of auto insurance coverage.