Having a vehicle insurance policy is a good practice; however, having the same insurance provider for many years may not be a wise decision. It is easier to renew your policy with your existing insurance provider so that you don’t have to go through the hassles of checking out other policy providers, their advantages and disadvantages, etc. But what people fail to understand is that in this process they might be spending unnecessary money which they can save by opting for a new and better policy.

If you have decided to switch your vehicle policy, then you might be wondering how to go about it, right?  There are a couple of things that you need to be aware of while switching your vehicle insurance policy. You can follow the below 7 easy steps to ensure that you save money while switching your policies. If not, there are chances that you will end up with a disadvantage.

  1. Look Around

The insurance cover provided can range from 6 months to a year before its time to renew it. It is always best to get quotes from at least 3 insurance companies so that you can compare and choose the best one.  You can compare between features like discounts, coverage, deductibles, limits, benefits, etc.

  1. Talk to your Current Provider

Because of the tough competition around, your current insurance provider can give you a better deal to retain you back, or they might try and match up to your rival’s prices.

  1. Penalties

Switching is smooth and easy and there are no penalties in switching the insurance provider if the switching is happening at the time of renewal. If you plan to switch in between although it is not recommended, however, you can do so by purchasing another policy and then cancelling the existing policy and in this case you will need to find out if there are any penalties involved.

  1. Research

You need to be thorough in your research. You cannot assume that just because an insurance company is giving a good deal, it is the right choice for you. One way would be to check the ratio of that company’s customer complaints. You could also check the company’s reviews on its Facebook page, Twitter or through your friends and family.

  1. No Lapses

Ensure that you cancel your existing policy only after you have the new policy in hand. Any lapse in this can land you in financial as well as legal problems.

  1. Cancellation

After switching to a new insurance provider, you need to confirm that your previous insurer has cancelled the policy so that you don’t get any unwanted bills. This step would also keep your credit score safe and sound.

  1. New Insurance Policy

The final step to ensure a smooth and easy switch of your vehicle insurance policy is to get your new insurance policy printed. It is a good idea to save all the documents related to your previous policy as well.

Switching your vehicle insurance policy is not an easy task. We hope these 7 steps would help you in overcoming this task in a smooth, easy and efficient manner. A little bit of research and planning can go a long way in saving some mega bucks for you!

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