Let’s say that you are unhappy with your current auto insurance carrier and are thinking about changing to a new insurance provider. The problem could be anything from not liking the way they handle claims or raising your rates just because you got one speeding ticket. If you decide to change carriers, you will have to apply all over again with a new carrier and they will then go through the underwriting process to determine the premium for that policy.
In most cases, if you buy the exact same coverage from another insurance provider, the premium should not be very different from your current insurance provider. However, you may forfeit loyalty discounts if you have been with your current insurance company for a number of years. You should also be careful to compare coverage amounts, including extras such as rental car reimbursement or road service assistance.
Each insurance company has their own methods of categorizing risk. If you happen to be a young driver, there are some insurance providers that do not penalize you just for being under 25. Other companies may ding you because, as a group, younger drivers engage in more risky driving behavior than older, more experienced drivers.
It is also particularly important to make sure you do not let your old policy lapse before you replace it with a new policy. With just a few phone calls to your current and new insurance provider, it is easy to make a smooth transition and have uninterrupted insurance coverage.
Another factor you might need to consider concerns life insurance. As you probably know, life insurance gets more expensive as you age. Before you give up a life insurance policy that you have owned for 10 years, make sure you are making a prudent financial decision. If you need help deciding on whether or not you should change insurance providers, talk to your trusted independent agent. They will steer you in the right direction!