Switching one’s car insurance is a really common procedure. A few decades ago, it was usual to stay with the same insurer for a long time. Nowadays, changing insurance is done frequently, taking advantage of the different offers in search of better conditions. However, there are some aspects that should be taken into account by more people. Let’s review the main ones.
Changing auto insurance in the United States
A relevant fact: in 2020, a year complicated by the onset of the coronavirus pandemic, virtually half of U.S. consumers made changes in managing their vehicle insurance costs, as stated by an insurance shopping study conducted by J.D. Power in 2021.
We can understand the importance of these changes in terms of volume. Still, if we look closely at the detail, we see that within those changes, almost 15% searched other insurance companies, and 12% switched to a new insurer.
That is, as you can see, a really important cipher. It is also true that 2020 was a year of many upheavals in which the average user had more time to review their expenses and costs. Not only because of the quarantine periods but also because the fear of a severe economic recession made us value these modifications much more.
Why change your auto insurance?
Perhaps the first thought that comes to mind about a change in car insurance has to do with the costs. And, of course, costs are a key factor. Most of us want to improve the terms of our insurance, finances, and services.
Therefore, the motivation to seek cheaper insurance is always present in these changes. However, as time goes by, other things gain value as well. We increasingly appreciate the relationship between coverage/price. Therefore, although the price is an important factor when changing policy, it is increasingly important to modify the coverage and adjust it as much as possible to our needs.
Years ago, car insurance was quite rigid. That is to say, the coverages needed to be more flexible, and it was difficult to adapt the insurance to the driver; on the contrary, the driver had to adapt to the policy.
Today, this has changed. We are finding more flexible insurance policies that allow us to adjust much more to our reality and needs. If you are a driver with few hours behind the wheel throughout the year, your insurance will be different from that of a client with a huge volume of driving work. If your vehicle is constantly kept in a garage, your protection needs are other than if your car remains on the street, etc.
All this means that, sometimes, the change of insurance is not only motivated by an economic improvement but also by leaping to the most flexible and suitable policies.
How to change your car insurance
There are some steps you should take when changing your car insurance. The first step is pondering: the market has a simply enormous amount of offers. And in addition, the price difference between these offers is wide. You can find deals with practically the same range of coverage and a great price difference between them.
Once you’ve become aware of this, you can get much more out of your search. The first thing you should do if you have become convinced to change insurance, either because of a specific offer or because you are looking for something better, is to compare. Nowadays, there is a large number of insurance comparators.
In these comparators, you can search for the most interesting option, filter the search, and check the results. As sometimes the comparators are linked in results to some companies or others, a more exhaustive search would be the one that comes from the best proposals of different comparators. In this way, you are guaranteed to cover much more of the market quickly and efficiently.
What to consider when changing insurance
The main factors that should always be taken into account when evaluating a comparison before changing insurance are the following:
- The price: this is logical; a cheaper policy is always interesting. Of course, as long as it does not reduce the insurance policy’s benefits, we can consider it.
- The excess: not all policyholders are in favor of having an insurance policy with an excess. Therefore, should pay attention to this factor.
- The payment model: although costs are generally covered in a single payment, some policies allow for quarterly, monthly, or even half-yearly payments.
- The bonuses: this is a very important aspect. Not all companies are willing to explicitly show the bonuses they give for a good driving record, but you should ask or try to find out about it as the final prices change a lot.
- The coverages: comparing coverages is another very important element you should always do when comparing car insurance.
Changing your insurance identification card
Once you have decided to change your insurance, updating your policyholder’s identification cards is important. Remember that there are many situations where proof of insurance may be required, so the card is important.
Usually, you will be able to obtain proof of insurance payment by fax or e-mail after the policy is purchased. Another option is to access the electronic insurance card: you can download it and store it on your cell phone through the insurer’s application.
On the other hand, it is important to have new insurance in force before canceling the previous one. That is a frequent mistake that is sometimes caused by a miscalculation of the policy’s time of validity. Only when you have confirmed the new policy should you cancel the old one.