As you searched for your current home or auto insurance policy, you probably did the "right thing" and compared prices before you settled on the policies which you bought. Now, you're mid-term with your policy and you've found that another company is offering cheaper policies. Being the money-savvy consumer that you are, it might make sense to switch policies mid-term, but is this possible? In many cases, it's probably acceptable, but it's often not the best decision. You may incur fines, the process will require a fair bit of time involvement, and you might be anxiously waiting weeks or months for your refund check to arrive in order to pay for the new policy.
Here are three things you need to consider before making the decision to switch policies mid-term:
What kind of fees will your current provider impose? An insurance policy is usually written for six months to one year, and the premiums are assessed at regular, predetermined intervals. If you're at month four of a six month policy, it's probably better to just wait it out since the insurance provider might assess early termination fees or another financial penalty.
Does the new policy offer the same or better coverage? Insurance prices are always eye-catching and even though the wording might read like that of your current policy, you may find some surprises buried in the fine print. There's no sense in policy hopping if you're not getting substantially better coverage at a lower price. You have to consider the time involvement that goes into researching and taking out a new policy. It might not be worth a $50 refund check if you have to spend 20 hours working with agents at two different companies.
Will the old policy be canceled before the new one takes effect? Most state laws require a certain minimum insurance level, especially when it comes to auto insurance. If your old policy ends on November 1 but the new one doesn't start until November 3, you may be driving illegally, and you put yourself at greater financial risk should you be involved in an accident during those few days.
For help looking at the two policies, and seeing if you are better off changing to a new carrier before your current one expires, contact your local independent insurance agent in your area today to assist with you through the process. They'll be able to help you look past the price difference and compare all of the other features of the home or auto insurance policy. Best of all, you can even get an instant quote directly on this website to ensure you are able to compare from different carriers.
How do you Know when it is Necessary to Call the Police when Involved in a Car Accident?
When you are in a major auto accident, you already know that it is important to call the police and an ambulance. If you do not contact the authorities personally, then it is likely that passersby ...
Read More →
Is it a Myth or Fact that Red Cars Cost More to Insure?
When you are considering the purchase of a new vehicle, you want to take time to consider the impact on your insurance policy. Among the myths that may worry you is the idea that red cars are more ...
Read More →
Finding out your Options when your Auto Insurance Denies your Claim
As if dealing with the hassle of an auto accident wasn’t enough, your insurance company has now denied your claim. Your car is wrecked, you’re out several hundred or more dollars, and y...
Read More →