Switching Car Insurance Companies


  • car-insurance

In Ontario, as well as the rest of Canada, car insurance is a requirement if you want to own and drive a car on the province’s roads. During the rush to buy a car, insurance may be an afterthought, a rushed call to your broker to get coverage in place prior to completing ownership paperwork. Down the road, you may realize that you didn’t get the best coverage or price. Perhaps another insurance company offers features or programs that you prefer. In either case, you’ll need to transition to another insurer. There are some things to consider to make a smooth, uneventful move with no lapse in coverage.

5 Reasons to Consider Switching Car Insurance

If your monthly car insurance bill has you dreaming of jumping ship and heading to greener pastures, you’re not alone. It turns out that many people are unhappy with their current auto insurance policy and are looking for a new provider. If you’re thinking about making a change but can’t seem to commit, check out these five reasons to consider switching car insurance companies.

1. Cost

Cost changes depending on who your insurer is. You can often get the same coverage from a different company for less money. The reason is that insurance companies base costs on who their pool of insured drivers are, so if you’re with a company that has more bad drivers, you’ll pay a little more. Other factors that influence cost are the costs of running a business, benefits, staff pay, and previous claims. Take all of the benefits of each company into account when deciding if you should make a switch or not.

2. Personal Preference

You may have a cheaper car insurance policy because you are extremely limited as to who can work on your car in the event of an accident. Like a health plan, your car insurance provider can have a network of repair specialists that it has contracts with to secure lower prices. Having a smaller, less convenient network may be one reason that you’re paying less. If the shop you’re allowed to use isn’t one you feel comfortable at, you may want to change providers.

3. Extra Benefits

If your insurance policy doesn’t offer any extra perks, you may consider switching providers. Some of the best perks available include vanishing deductibles and rental car coverages. Some insurance companies will also extend a multi-policy discount if you also have homeowners or renters insurance with them as well. Usually, larger companies offer the multi-plan discount, but it’s worth asking about, even if you favour one of the smaller companies.

4. Something Has Changed in Your Life

Whether you’ve gotten a new car or added a teenage driver onto your policy, whenever your circumstances change, you should look around for a new insurance provider. Some companies may offer much lower prices on full insurance for a new vehicle, allowing you to upgrade your car without increasing your payments. Moving is another event that can drastically change your rates.

5. Customer Service

If you’re not getting the type of customer service you expect, you may be ready to look for a new car insurance company. Claims adjusters, customer service representatives, and other employees should treat you with respect and have the knowledge to address any questions or concerns you may have. It’s important to know that you’re doing business with a competent and capable company. If you’re not, now is a great time to pick up the phone and look for someone else to do business with.

You may also want to take a look at the ethics of the people running the company. If the CEO or top official is doing something that you find to be against your ethics, like killing endangered animals for sport, it may be time to take your dollars somewhere else so you can sleep better at night.

If you’re looking for a new car insurance company to serve your needs, click the link below and get some quotes from quality providers near you.

Switching Insurance Companies In The Middle Of A Policy

switching company

In recent times there has been a lot of competition and variable options in the insurance industry. You may have car insurance and still start to shop for a better choice. There could be various reasons to switch. While price is an important factor, there are other considerations too. Or you may want to switch your car insurance to cover a new car.

In Ontario, most of the insurance companies charge a fee that is calculated based on the short rate cancellation table.[1] This fee is charged when an insured request to cancel a policy. This penalty includes costs for administrative and handling the issuance of the policy. There may be a fee for early cancellation too. This fee is very specific to insurance companies. Many of us may wonder if car insurance can be switched in the middle of a policy term. It is possible to do so.

How To Switch Car Insurance Companies Step By Step

You may switch your car insurance provider for any reason. By following some simple steps you may ensure that you took the right decision.

  • Compare quotes from different insurance providers. Check for same coverage level and other options from various sources. This will help you get a fair comparison.
  • Select a new car insurance provider and a policy. You may ensure that the premiums match the quote offered earlier.
  • Cancel the old policy in writing after the new policy is in effect. This will give you insurance coverage without a gap between the two providers. You may also choose to cancel the old policy retroactively by providing proof of existing coverage.
  • If you are cancelling your policy midterm, you may receive a refund on a prorated basis. Some companies may give you a refund after taking the short rate penalty for cancelling early. If this fee is more than the benefit of saving on the new policy you may cancel at renewal and not early. When you are not cancelling midterm, inform the insurance company that you may not renew.
  • Also remember that you may lose accident forgiveness on your old policy by switching. You may also lose any loyalty or multi-product discounts that you had with the old provider. Check to see what kind of discounts your new policy may have based on your driving record.

How To Switch Car Insurance To New Car Step By Step

It is very important to update the insurance coverage on your new car. This will ensure that the new car has adequate protection. When you shop around for a new car, make a list and contact your insurance provider. Get an insurance quote for the different models that you have chosen. Your old policy may cover your new car temporarily.

  • After you have decided on a new car, inform the insurance company that you need to update the vehicle information.
  • Verify the type of insurance coverage that you are transferring from old car to new car.
  • If needed update the amount of coverage too for full protection of the new car.
  • Update the vehicle identification number and other details about the new car on the policy. Inform the insurance about any additional safety devices on your new car as you may get a discount.
  • You may choose to add full coverage on your new car as it justifies the value of the new car.

[1] https://www.fsco.gov.on.ca/en/auto/Pages/faqs.aspx

The Importance of Comparison Shopping

Ontario’s car insurance market is the most expensive in the country, if not the world. While prices are high, it remains a privately provided insurance system, so companies are competing for your business. It does make sense to periodically check to see if your coverage is available more affordably through other providers. Ratelab’s car insurance calculator revolutionizes the car insurance quote process.

Doing it the old way, a couple hours of phone calls might yield half a dozen estimates from six insurers, and without any knowledge that the best rates are included. Ratelab’s search scours dozens of insurers and returns only the lowest estimates for your particular car insurance needs. When your insurance renewal is coming up, check in with Ratelab to continue paying the least for your policy.

Cancellation Fees

There’s a good reason to concentrate your efforts to switch companies around your annual renewal. The standard Ontario car insurance policy form and regulations allow an insurer to charge an administrative fee for the cancellation of your policy. A policy is essentially a contract with a term of one year, most commonly. Early cancellation of that contract has a cost. If you’re 11 months into your policy, this fee will be small. If you bought coverage only last month, though, the cancellation fee could be substantial, enough to negate potential savings.

If you have pre-paid premiums with your current insurer, these will be returned on a prorated basis.

Cancel Your Coverage in Writing

To assure a smooth transition between insurers, notify your current company as early as possible. While you can inform your agent or broker of changes by phone, written follow-up is in your best interests, and your broker may require it. This serves as a record that you indeed want to make changes. It establishes the date of change and the details of your request. The cancellation notice should include your name, the policy number, the insuring company and the names and signatures of anyone else listed on the policy. This prevents any “I didn’t know” situations after cancellation.

Consider activating your new policy a few days before the current policy is cancelled. This provides peace of mind that your car is covered through the process, and gives you time to deal with any complications in the new coverage. It may be even safer to start the cancellation process after you’ve obtained new insurance. The cost for this redundancy won’t be significant.

You do need to cancel your old policy, even if it’s renewal time. Without notification, your old company will issue another policy for the coming year, expecting payment. If this is not made, you may be classed a high risk driver for non-payment.

Switching insurers is straightforward but does require some thought to go smoothly. The car insurance market in Ontario makes price hunting important to assure affordable coverage. Switching insurance companies may be necessary as part of the process.