5 Common Mistakes To Avoid When Switching Car Insurance

Financial matters are often complicated for most people to understand, so most times they learn from mistakes, and one aspect that is continuously associated with these mistakes is auto insurance. Having a car is great, but it comes along with additional expenses, auto insurance occupying a large portion of costs. Ensuring you get the best value for your money and the best return from your situations makes sense. However, the effect of some mistakes on your finances can be more severe than the other.

Mistake 1: Leaving Your Current Car Insurance Agent In The Dark About Switching Car Insurance.

Like auto insurance, dissolving every contract is always difficult and with mixed feelings, but not informing the other party is just as bad as not doing it well. Hence, the importance of informing your current agent about the switch to another car insurance carrier cannot be understated, as they understand the industry better and could present other enticing offers that mean more value for your money.

Also, you don’t have to worry about how professional agents will handle your request. In fact, you might be surprised at how openhearted they can be. They also come in handy when you’re comparing your new options to make a better decision, more the reason you should keep them privy.

Mistake 2: Ditching Your Old Car Insurance Policy Without A New One In Place.

Switching away from your below par or unfavorable auto insurance is always a good decision, especially if you’ve reached out to your current agent and better coverage or premiums could not be offered.

However, your decision could quickly turn from good to bad if you fail to put a new policy in place immediately after ditching the old one; creating a gap in your coverage. Your lack of coverage while you shop around for car insurance may be interpreted as risky behavior, which may result in a higher premium.

Mistake 3: Failing To Get A Refund For Unused Coverage.

Perhaps you paid for your auto insurance policy in advance but changed carriers mid-way through; you are eligible to request for a refund if you switch to a new coverage before the coverage period of the current policy lapses.

For instance, you paid your annual car insurance premium only to switch to another policy after about six months. It is within your rights to request for a refund for the unused coverage. 

Mistake 4: Failing To Switch Out Car Insurance IDs In Your Wallet Or Car.

If you keep a paper copy of your proof of insurance in your wallet or car, be sure to print the new one for your new coverage and swap it out with the old insurance card. In Florida, digital copies are also accepted, so you can easily download your new insurance ID on your phone and save it to your gallery or other easily accessible file on your cell. You don’t want to make the mistake of handing over proof of insurance with inactive coverage if you are ever pulled over.

If you think this would still take too much time, try to imagine what would happen if you were pulled over, and you start searching everywhere for your proof of insurance? You could be in for a fine or an even more time-consuming trip to the traffic court to prove you do have valid car insurance coverage.

A Life Insurance Policy Can Cover Funeral Expenses

You should never keep your finance or leasing company out of the loop whenever you switch your auto insurance provider or policy. They should be aware of your new insurer as well as the value of the coverage. Also, keep in mind some leasing or financing companies may have specific requirements for types of coverages or coverage limits, so before finalizing your change in car insurance be sure you are electing proper coverage.  

Insurance companies usually help their clients with updating the easing or financing companies but be sure they are handling it on your behalf before assuming it will just happen.

At Magruder Agency, we offer stress-free services including but not limited to issuing your new IDs within 24 hours and notifying the necessary agents and lien holders about your switch. Try us today to enjoy the best value for your money. For more info or a free quote, kindly contact us at (813) 654 – 3100 or send us a message online using the form below.

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