Car Hacks / Featured

How To Switch Your Car Insurer In Five Easy Steps

One can never be penalised nor faulted for switching car insurer “too often”, especially since savings can be enjoyed. Switching car insurance companies are not as complex as you think as we bring you 5 simple steps to change your car insurer!

Step One: Understand Current Policy

Before you start, you should know your current policy coverage like the back of your hand. Your current insurer may be offering you an attractive policy that makes it hard to replace, or they could be offering you a policy that is inadequate or too pricey.

It’s essential to determine your budget and what type of coverage you are looking for.

Additionally, find out the possible penalties for changing the policy before the end of the coverage period. In a case of a penalty that could be incurred, do a calculation to decide if it would be a better idea for you to wait it out or make the switch.

Step Two: Determine The Right Time

The only time when you will see a big price difference is when you experience a life change that affects how insurance companies calculate their rates.

Life changes like getting married typically gets you lower rates, or having an accident or an open claim, where the new insurer will give you a rate higher than your current one to keep you with your current provider for a few more months.

Having an open claim does not mean you cannot switch insurer. It simply means that you will have to handle 2 insurance companies at one go, until the claim is fully paid out.

Step Three: Shop Around

Take your time to shop for the ‘right’ insurance policy, keeping a mind of a mix of low prices and good customer service. The more insurers you have to compare, the better you will be able to haggle and identify what the competitive rate is.

After you’ve found the best price for insurance, you can ring up your current provider to check if they are able to match the quote you have obtained from a competitor. You never know, some companies are willing to offer you great discounts to keep you loyal.

Step Four: Cancel Existing Policy

Once you’ve decided to cancel your existing policy, its best to have your insurance policy cancelled at the end of your renewal period so that you have adequately exhausted the remaining cover.

Inform your insurer on your intention to cancel the policy and select a date from which your policy will become invalid. Do have have an official written notice for them on your cancellation as well as a written confirmation from them in return.

Step Five: Make The Switch

While you have cancel your current insurance policy, have your new policy purchased and confirm that it is activated on the day or a few days before your old one expires. A refund can be obtained from your existing insurer for the amount of time left before your policy ends, if you show them the proof of your new insurance.

If you are holding a loan or lease on your vehicle, remember to inform your lease provider to prevent undesirable outcomes such as having your car repossessed.

It’s your right to change car insurance companies as and when you like, but keep in mind that a penalties may be charged for ending contracts. Make sure that switching insurers really saves you money and provides you with the adequate coverage you are looking for.

This guide was brought to you by Teck Wei Credit. To find out more about Teck Wei Credit, visit their Facebook at @teckweicredit or book an appointment on their website.

No Comments

    Leave a Reply

    %d bloggers like this: