3 Pros And Cons Of Switching Car Insurance

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Just as you protect your belongings against loss, damage, or theft, your car also needs to be insured. Of course, car insurance comes in different forms, each with its benefits and drawbacks. However, it’s difficult to say what the best car insurance is, as it all depends on how the policy you purchase suits your and your family’s needs. 

Whether you’re purchasing a policy for the first time or are shopping around for a better deal, it’s essential to determine your state’s minimum insurance requirements and consider your financial situation in relation to any requirements.

But before you flip that switch, here are three pros and cons of switching car insurance carriers:

Pros Of Switching Car Insurance 

1. Improved Customer Service

Like every financial transaction, insurance is more than just an exchange of money; it also comes down to fairness and satisfaction. Although costs should be your primary consideration, you should also ensure you’ll receive quality and responsive customer service, especially when filing a claim. After all, you don’t want to wait on hold forever before speaking with an agent, nor do you want to be treated poorly in a time of distress.

2. Welcomed Discounts

The beauty of a competitive market is how it helps consumers receive maximum benefits. To encourage patronage, signing up as a new customer with some insurers comes with unique coupons and discounts, which may not be available with your former insurer. One of the easiest ways to reduce your bill is by getting car insurance discounts. Some popular options include:

  • Multi-policy discount
  • Good driver discount
  • Defensive driver discount
  • Good student discount
  • Pay-in-full discount

3. Improved Coverage

While you may be satisfied with your existing insurance company, switching might allow you to see just how much you have been missing in terms of coverage. Be on the lookout for companies with high customer service ratings and affordable coverage options, including accident forgiveness. While you may have to pay more for specific add-ons, doing so will likely provide you with tremendous value.

Cons Of Switching Car Insurance 

1. Hidden Charges

Suppose you don’t do your homework before selecting a new insurance carrier. In that case, you might fall victim to paying hidden charges and other sneaky expenses that needlessly drive up your insurance bill. Reading over any new or existing policy and making a few tweaks here and there could help lower the costs of your premiums. In particular, when looking for cheap car insurance, you should always be mindful of:

  • Monthly payment fees
  • Paper payment fees
  • Rental car reimbursement coverage
  • Emergency roadside service coverage

2. Cancelation Fees

Depending on the company, you can potentially cancel your insurance policy at any time. However, you run the risk of incurring cancellation fees or forfeiting your right to any refunds if you terminate the agreement early. If you do so, expect a $50 cancelation fee and/or be charged a small percentage of your last premium. Additionally, you may be required to send a formal letter of cancelation. Some insurance companies require a 30-day notice.

3. Loss Of Loyalty Benefits

Leaving one insurance company for another can also mean leaving behind some exclusive perks you may not otherwise be privy to elsewhere. For example, some companies can reduce your deductibles the longer you stay with them, while others can offer accident forgiveness, even when you are at fault.

Picking The Right Provider Doesn’t Need To Be Difficult

Of course, there is no perfect insurance company, but you can always find one that best suits your life circumstances. In your quest to find an ideal car insurance company, conduct proper research and weigh any and all advantages and disadvantages. Happy insurance hunting!