Are you wondering how to switch insurance companies or agents and get a lower rate? The answer depends on the insurance provider you're dealing with, among other factors. Each company has a different policy, but you should be able to make the switch at any time. First, research your options and choose a new insurance provider to avoid gaps in coverage.
Reasons to Switch Insurance Carriers
Insurance premiums are going up year after year. For example, the average car insurance rate in New Jersey increased from $1,351 in 2017 to $1,395 in 2019, according to the Rocky Mountain Insurance Information Association. Colorado residents paid an average of $1,052 for auto insurance in 2017 and $1,174 in 2019. The same goes for other insurance products, including life, health or disability coverage. That's one reason to switch insurance companies and find a better deal.
You may also want to change insurance agents or move to a different carrier if you're getting married or relocating to another state. Married couples often get lower rates because they are perceived as more financially stable. Plus, they can take out multiple policies with the same carrier to bring their premiums down. Some consumers switch insurance carriers after buying a new car or home, leaving the workforce or having a bad claims experience. All of these are valid reasons to review your coverage and consider other options.
Choose a Different Insurance Agent
Depending on your needs, you can switch insurance agents within the same company or choose a new carrier. For example, changing State Farm agents is relatively simple. All you need to do is ask your current agent for recommendations or search for a new agent via the company's website or mobile app. State Farm recommends getting a new policy before you cancel the one you have. If you relocate to a different state, buy a new policy after (not before) you move.
Regardless of the type of insurance, it's your right to choose a different agent in the state where you live as long as he's licensed in that state. The New York State Department of Financial Services, for instance, has a search function on its website that consumers can use to look up licensed agents and carriers. Your state's website might offer this service too. Once you've made the switch, inform your insurance provider about it so your policy can be updated.
How to Change Insurance Companies
If you decide to switch insurance carriers, you'll be assigned a new agent. This process is more or less complicated depending on the type of coverage and the company you're dealing with. The first step in changing insurers is to research your options and get multiple quotes from different providers. Choose an offer that meets your needs and contact the insurance carrier to discuss the terms of your coverage. Once these steps are complete, go ahead and cancel your previous policy.
For example, TD Insurance provides support by phone and live chat. Request a free quote via the company's website and then contact the customer service department to sign a new policy. Note, however, that your previous insurance carrier may charge a penalty fee if you cancel the policy before its renewal date.
Remember to keep your current policy until the new one comes into effect. Failure to do so can result in higher premiums, fines or liability. If, say, you cancel your health insurance plan before the new policy kicks off, you'll have to pay out of pocket in the event of an illness or injury. Driving without car insurance can lead to hefty fines, and you could have your license suspended, explains the Insurance Information Institute.