There are many reasons why people want to change their insurance. Maybe they want to change the coverage. Maybe they want cheaper premiums. It is also possible they want better customer service. Or maybe they just want to change things up. Whatever the reason, many people go through this phase. The great thing is, it does not have to be hard or stressful. By knowing the key things when changing car insurance, the process could be a breeze.

The most important thing to note is to have a new insurance in place before canceling the old one. This ensures that you are not driving illegally. This also protects you from any risks for having a gap in your coverage. In addition, make sure you get everything in writing. This protects you from the insurance company charging you fees when you already ended the contract.

Can You Change Your Auto Insurance At Any Time?

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Insurance companies do not impose a bond when you apply for coverage. As such, you are free to cancel as you please. You can change your auto insurance whenever you want, even if you have not completed the term. So, for instance, you signed up for car insurance in January. After two months, you find a better deal. You can cancel your current policy right then and there to make the switch.

Before you do this, however, there are things to consider. For one, it is illegal to drive an uninsured car in Canada. This means you cannot cancel your current insurance unless you have a new one in place. Otherwise, you will not be able to use your car. For another, insurance companies impose penalties when you cancel. If you pay annually, they will subtract the fees from your premium before giving you a refund. If you pay monthly, they can charge you the amount before canceling your contract.

How Do You Cancel Car Insurance Without Charges?

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It is never ideal to pay penalties. You are already dissatisfied with a service so why keep paying, right? But these are the rules. If you really do not want to pay, however, there are things you can do. If it is almost time to renew, it is best to just wait. By waiting a few more months, you can avoid cancelation fees. This is because you will complete your term and not break your contract. Canceling car insurance is like canceling a phone plan. If you wait until the term is over, though, you can just choose not to renew.

If you paid your premiums annually, there will be no additional fees anymore. This is because the insurance company will just take it out of your refund. You are entitled to a refund if you end your coverage mid-term. In this case, the insurers have to return the unused premium you already paid. Technically, they are still deducting penalty fees. However, you do not have to shell out any more money.

Can You Switch Insurance Companies If You Have an Open Claim?

Unfortunately, it is when we make claims that we find out how good or bad we have it. Sometimes people realize during this time how bad their insurers are. Often poor customer service turns people away. Sometimes, insurance companies take too long to resolve issues. Fortunately, you do not have to put up with this forever. You can change your car insurance even with an open claim. Thus you can switch insurers while you wait for resolution.

However, this does not mean that you can just drop your old company. You will not be able to transfer open claims to your new insurers. As such, you still have to deal with the old ones. This means you still have to pay any deductibles. You will need to pay additional expenses, if necessary as well.

How Do You Switch Car Insurance to A New Car?

If you are happy with your current insurance company, but you are getting a new car, you can just update your information. Switching your coverage from the old car to the new is pretty simple. Before buying, however, there are a few things to consider. You can ask your insurer for quotes on the different models you are looking at. Some car models are much cheaper to insure than others. As such, seeing how much insurance you have to pay can help you decide.

After you have done this, you must update your car’s information with your insurers. Review your policy. Check that your old policy fully covers the new car too. If not, this is the time to make amendments. Your premium may change because of this. However, it is much easier than canceling your current insurance and getting a new one all over again – if you are happy with it.

Can I Transfer My Car Insurance Policy?

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If you are selling your car, you do not have to cancel your car insurance automatically. If the buyer agrees with it, you can simply transfer the ownership of your insurance policy as well. This way, you do not have to pay fees. The new owner does not have to find new insurance either. The transfer process is very simple. First, you must complete the sale. The new owner’s name must appear in the title and all registration documents must be in order. You then have to inform your insurance company of the sale.

Technically, because the car is no longer yours, your coverage is no longer valid. Thus, you have to inform them of your intention to transfer the car insurance as well. The new owner will have to submit required documents to the insurers. After that, the insurance company will take care of the rest. Make sure that you get everything in writing as well. This will ensure that the transaction went smoothly and that the insurance company has nothing to do with you anymore.

Conclusion

Changing car insurance companies should be stress-free and easy. After finding the best replacement, make sure your new coverage is already active before canceling your old policy. This is to ensure that you have no gap in your coverage, should an accident happen and you need to make a claim. Once your new policy is active, terminate your old policy and get it in writing. This gives you proof that everything ended on good terms, and that there are no outstanding fees anymore.

You may have to pay penalties for canceling your insurance before the term is complete. If you wait until the end of the term, though, you can opt not to renew instead. This way, you do not have to pay a penalty. You can also change car insurance companies while a claim is open. What this means is your old company will handle the existing claim, but any new ones can go to the new company. You will still have to pay deductibles to the old company, however.

If you are getting a new car or selling your old one, you can also opt to just transfer your policy instead of canceling. In the case of getting a new car, you will have to update your vehicle information in the policy to reflect the new one. This could affect your premium. In the case of selling, on the other hand, you will have to inform your insurers of the completed sale. They will then take care of the paperwork with the approval of the new owner.

Resources

https://www.bankrate.com/finance/insurance/switching-car-insurance.aspx
https://www.wheels.ca/news/changing-insurance-companies-how-and-when-to-switch/