One can never be penalised nor faulted for changing their car insurance “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 at the back of your hand. Your current insurer may be offering you an attractive policy that you may face a headache when looking for one to replace it, or they could be offering you a policy that you feel is inadequate or too pricey.
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It is essential to determine what type of coverage you are looking for as well as your budget.
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, be sure to 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 that may affect the rates include getting married, as married couples typically get lower rates, or having an accident or open claim, whereby 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, for a mix of a low price and good customer service. The more insurers you manage to check and compare with, the better you will be able to haggle and identify what the competitive rate is.
After you have 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 may never know, some companies are willing to offer you great discounts to keep you loyal.
Step Four: Cancel Existing Policy
Once you have decided to cancel your existing policy, it may be 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. It is best that you 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 cancelled the 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.
Though it is your right to change car insurance companies as and when you like, it is important to keep in mind that a contract has been signed and that penalties may be charged. Make sure that switching insurers really saves you money and provides you with the adequate coverage you are looking for.
Still unsure of how to make the switch or what type of coverage you require? Contact the team at Teck Wei Credit today!
Teck Wei Credit is your one-stop, hassle-free solution to all your motoring needs.
Teck Wei Credit
Address: 210 Turf Club Rd, Lot A8, Car Mall @ The Grandstand, Singapore 287995
Business Hours: 9:30am to 6:00pm | Closed on Weekends
Contact Number: +65 6465 0020
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