How to Switch to a Cheap Auto Insurance Company

The fact that car insurance companies are in plenty means that motorists have countless options to choose from when shopping for auto insurance. These companies compete among themselves and therefore most make the effort to ensure existing customers are satisfied while trying to woo new ones. One of the aspects that a cheap auto insurance company uses to beat competition is to offer affordable products or services. Others include offering discounts and promotions, impeccable customer service and so on.

However, a customer may still choose to switch to a different provider who suits him or her best. The reasons to switch are many; it may be that the cost of your current car insurance is too high, you may be moving to a different town or you may just be unhappy with your insurance company. It is important that you follow the right procedure when switching to a cheap auto insurance company to avoid paying higher premium due to gaps created during the moving process. In addition, you may not wish to risk driving without car insurance during the transition period.

Do not cancel your auto insurance yet before the new one takes effect. If the insurance company notifies the Department of Motor Vehicles that your insurance has lapsed before you have the new one, you may get into trouble for driving without insurance. The first step is to review your current policy and determine where it fails to match with the level of coverage that you need. From there, you can identify which companies have the best products for you. Then get quotes from these companies and compare them. Choose a company with the most competitive prices. Bear in mind, however, that price alone is not enough consideration when switching to a cheap auto insurance company. It is important that you look out for other details like a company's financial strength, if they offer discounts, history of paying claims and so on.

Once you have identified the cheap auto insurance company you want to switch to, notify your current company in writing that you wish to terminate your insurance. Avoid doing this over the telephone, because not only is writing an official letter formal procedure, but you will also need to keep a copy of the letter for the records. At this point, you can contact your new, cheap auto insurance company to verify that your new insurance is active.