How to Switch Car Insurance
- 1). Purchase new insurance coverage. Before you can switch from an old insurance company to a new one, you must have a new car insurance policy in place. Not doing so will result in a lapse in coverage, which not only puts you in violation of the law but also will make it more difficult to reasonably price automobile insurance.
- 2). Contact the old insurance agent and tell him to cancel the old policy. It's best to make such a request in writing. Whether you choose to use e-mail or a written letter, having something in print makes it easier to follow up and verify that your request was actually received. Phone conversations are good but they should be followed up by written correspondence.
- 3). Advise the old insurance company of the new insurance information. By law, insurance companies must notify the state Department of Motor Vehicles when a car insurance policy is canceled. They do this because the state keeps track of uninsured drivers and fines them accordingly. By giving the old insurance company the new insurance information, you will not be reported as an uninsured driver.
- 4). Set up a pending file for the receipt of the cancellation endorsement and any return of premiums that is due. If you switched your automobile coverage midterm, more than likely there is a return of premium owed to you. Most companies will issue the return of premium within a 30-day window, but it's best to follow up to make sure that you receive the cancellation endorsement along with the return of premium.
- 5). Take care of the paperwork. This means getting rid of the old insurance ID cards and replacing them with new ones. If there are any certificates of insurance outstanding on the old policy, make sure to contact your new insurance company and have them issue the appropriate certificates of insurance showing the new policy information.