Switching Auto Insurance Companies – 5 Common Mistakes To Avoid

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 third place in that long list. Ensuring you get the best value for your money and the best return from your situations makes a lot of sense. However, the effect of some mistakes on your finances can be more severe than the other.

 

Mistake 1: Leaving your current insurance agent in the dark.

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 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 why you should keep them privy.

Mistake 2: Ditching the old 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. However, your decision could quickly turn from good to bad if you fail to put the new policy in place immediately after ditching the old one; thereby creating an interval in your coverage. Insurers are experts and savvy business professionals always looking to charge clients as high as possible, so they will interpret having periods without coverage as risky behavior and subsequently bill you as appropriate. Similar to having gaps during your switch, skipping a renewal offer from your company also puts you in a tricky situation because despite the allowable time permitted for nonpayment, auto insurers are poised to charge clients at a premium, and this could serve as another blow to your credit score.

Mistake 3: Failing to get a refund for unused coverage

Perhaps, you paid for your auto insurance policy in advance; 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 bought a full year coverage plan only to switch to another policy after about six months. It is within your rights to request for a refund for the unused coverage. Remember, insurance companies are purely profit-oriented ventures. So, you shouldn’t expect them to call you to come for your money. Instead, you should do your due diligence by following up and demanding what you are owed.

Mistake 4: Failing to switch out New IDs

It appears that many do not realize they need to switch auto insurance IDs whenever they purchase new coverage. Understandably, the process could have proved stressful in the past. But in this digital age, you can easily download your ID and even print it yourself. If you think this would still take too much time, try to imagine what would happen if you are 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 your innocence. I’d take the former option any day.

Mistake 5: Failing to notify your leasing or finance company of the switch

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. Insurance companies usually help their clients with this but often, you would need to nudge them before they carry out the task.

 

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 by clicking the blue button above.

2018-06-18T16:39:22+00:00