I am new to the ins and outs of having auto insurance. And for those who are like me you want to know enough to make an informed decision. In my quest to find out as much as I can about auto insurance I have learned that if your policy has lapsed for whatever reason that it costs more when you get a new policy. With that said if you are looking to switch insurance agencies it is beneficial to switch while your current policy is still active. If you find that you need to switch for financial reasons to reduce costs, go over the coverage details to find out where you can save e.g. increasing your deductible or decreasing the medical coverage even eliminate the car rental option, these items can be restored when you find your finances in a much more viable state. Doing this will keep your status with your current agency intact to receive any future discounts that you may be entitled to for being a loyal customer.
Yes, they always charge more if your previous policy has lapsed. I have such a good rate now, with Geico that I always pay my insurance. It is dirt cheap. There is a company here called the Insurance Doctor they claim they can save you money on your insurance or they will buy you dinner..as long as it is not McDonalds...or some fast food place, I would be willing to try it to see what would happen!
Switching insurance when your last policy has elapsed leaves one in a vulnerable state. There are quite some good companies out there who offer nice incentives and discounts. Some even have schemes which can facilitate acquisition of a bank loan. I was wondering whether switching to a bigger insurance firm would cut on costs. I tend to calibrate smaller practices as more cost effective due to lower overheads or, is it?
Yes, you have to renew your auto insurance policy first before doing the switch and when your new provider requests for further details, mostly with regard to your previous auto insurance policy, you give the impression of faithful compliance. Because of your good standing, they'll be able to offer you better premiums.
Its always better to switch right before your previous policy is about to expire. Swtiching can be benefitial in most cases because if you haven't used up your insurance, you get the bonus that you were promised by the previous company as well. If you let it lapse, the costs are higher. But, if you get a new one within 90 days, you won't have to pay as much. It actually cost my mum like $40 less for some weird reason even though her insurance had lapsed.
This is a good question. Even though I have always gone with reputable companies like State Farm and now Allstate I have considered going with a lesser known company. I would think that because they are smaller practices that their costs would probably be more competitive but only a few dollars less than the bigger companies. Along those lines, most smaller companies tend to be independent agents and search for policies that would benefit the client's needs which include both large and small companies. It would really depend on what the client wants to pay as well as their personal preference of the agencies presented to them. Yeah, I was told that I would be able to get better rates after 6 months because of the lapse in coverage. I increased the deductible, medical and opted out of the car rental. The car rental terms sucked anyway.
