Switching Auto Insurance Companies: When Should You Do It

Looking for practical reasons to switch auto insurance companies? Harbor Insurance explains when you should switch providers and how to switch, even if you’re in the middle of a policy.

switching auto insurance companies: how?

Switching auto insurance company might be a smart choice, especially if you have recently moved or bought a new vehicle. But when should you do it?

There are many good reasons to change car insurance companies. A life event, economic crisis, a new job, savings, or even retirement. Mostly, people who wanted to switch insurance companies often just want a better service experience — they’re looking for the right fit. 

Ideally, most people wait for a year or two to compare increasing and decreasing rates. But our great news to you is that you won’t have to wait that long to do so. You can definitely make the switch today even if you’re in a middle of a policy. How so? Let’s talk a little more about switching auto insurance below!

Things to Consider When Switching to a New Insurance Company

Switching auto insurance companies can be an ideal move, especially if you’re looking for different and better coverage. We get it, we just can’t settle with something that’s no longer working for us anymore.

Whether you recently got married or living a new life in a foreign city, you will still want to look around and review different providers to ensure you get the best-fitting auto insurance for your needs.

Let’s take a look at some of the things you need to consider before switching auto insurance.

1. Slow or Inefficient Services

Does it feel like your current provider is no longer giving you quality and efficient services? This is the most common ground for switching. What doesn’t work today may never give you the right coverage in the long run.

2. Major Life Event

One of the good reason to switch auto insurance company is when you’re on a major life event, for some unfortunately on a major life crisis. Most people switch because of events like getting married, buying a home, or having a child which can impact your insurance needs. Updating your current policy or searching for a new one may be a good idea under these circumstances.

3. High Insurance Price

It’s either your insurer increased your rates, or they’re outdated on their terms. Insurance companies boost premiums for a variety of reasons, ranging from natural catastrophes to at-fault car accidents. 

If you are unhappy with the rise in inflation, it is time to shop around. Before you make significant changes, speak with your current insurer to find out why your rates have increased and if you are receiving all possible discounts. If your premium increased as a result of a claim, finding lower rates with a different insurer may be more challenging. However, it is important to double-check because various firms employ different factors to decide prices.

4. Moving Within the State

Insurance companies factor in the rates of theft, vandalism, and auto accidents where you live when deciding how much to charge for insurance. So if you just moved out from home, or are living in a new town somewhere else then it’s very much reasonable to get a new insurance provider. 

If your new home is in a less-risky neighborhood, you might want to get prices from different insurers to see if you can save.

How to Start the Switch?

According to the J.D. Power 2021 U.S. Insurance Shopping Study. , almost half (46 percent) of customers made adjustments in how they handled their auto insurance expenses in 2020. 15 percent of those who made changes searched for a new auto insurance provider, while 12 percent moved to a new insurer.

Here’s how to switch car insurance providers if your vehicle insurance needs have changed or if you just want to browse around for inexpensive car insurance.

Evaluate Your Coverage Needs

Start with evaluating what you need. 

The type of insurance you choose is determined by how much coverage your state needs and how much coverage you need in the case of an accident. The state minimum is the amount that every vehicle must carry, whereas liability insurance protects you from any damage you do to others. By including comprehensive and collision coverage, full coverage vehicle insurance compensates for losses incurred to both you and others.

The average cost of full coverage car insurance in North Carolina is $1,506 per year and $1,061 more than the cost of a liability-only policy in the state.

With that said, the amount of coverage you require is determined by the value of your vehicle, the coverages required by your leasing company or lender, the value of your assets, and numerous other considerations.

Research on Dependability

Before switching auto insurance, you might want to conduct extensive research on insurer providers in your area. Some useful resources are as follows:

  • The National Association of Insurance Commissioners (NAIC): The NAIC awards each firm a score based on the average number of complaints received. A score more than 1.00 indicates a higher-than-average number of complaints, while a score less than 1.00 indicates a lower-than-average number of complaints.
  • J.D. Power: This business performs research from many perspectives, such as overall customer happiness and claims satisfaction, and awards a score out of 1,000.
  • AM Best: AM Best is a fantastic site to utilize if you want to learn more about a company’s financial strength. AM Best gives a letter grade financial strength score to organizations, which might reflect how likely a company is to pay out claims.
  • Bankrate insurance company evaluations: To identify the top vehicle insurance providers, our editorial team examines average prices, customer service ratings, financial strength ratings, available coverages, and discount options. We have nationwide reviews as well as state-specific reviews.

Although pricing is an essential factor to consider, it’s not the only one to consider when selecting a vehicle insurance provider. Working with a qualified insurance expert may assist you in selecting a business that meets your requirements.

Solicit and Compare Quotes

You should always choose an auto insurance company that provides dependable, sensible, and cost-effective coverage. Make sure to obtain quotes from a number of different vehicle insurers. You will be able to compare auto insurance prices, coverage alternatives, and savings as a result of this. Just make sure you receive estimates for the identical coverages so you can compare rates apples to apples.

Talk to the Prospective New Agent

The best and ideal way to find auto insurance that’s befitting for your needs is to actually find a good agent. This way you can have all of your questions, and needs in one place and talk it out to them.

Have your questions, papers, and documents ready, and let your agent do the work for you.

Why Switch to Harbor Insurance?

As an independent insurance agency, Harbor Insurance knows what options you have for your auto insurance.

As one of North Carolina-based insurance providers, we aim to help you determine the most appropriate coverage and find the best options with top-rated carriers. In as easy as 30-minute consultation, we can let our team of skilled licensed agents help you today.

Final Thoughts.

There you have it, all the things you need to consider before switching to an auto insurance company. With these tips, we have enumerated reasons why you should switch and a few tips on how you can get that switch starting now.

If you’re looking for a reliable insurance agency near North Carolina, then don’t forget to book an appointment with us today, and let’s help you get clear on the right insurance coverage that will change your life.

Request a quote with Harbor Insurance now!