The average cost of an auto insurance policy in North Carolina was $705.56 in 2017. If you’re paying way more than this and don’t even have great coverage, now might be a good time to switch. Many people think that they must wait until their policies end before they change insurance companies, but this is not true.
You aren’t bound to a contract with your auto insurance provider, which means you can switch at any time. Normally, when cancelling, property policies are pro-rated and an auto policy in North Carolina uses a short-rate table to calculate total cost of the policy from the date it started to the date it was cancelled.
Switching to a new provider might seem like a hassle, but it’s not hard to do. In fact, here is a guide that you can follow that will help you switch companies in just a few simple steps.
Gather Your Policy Information
Having insurance is a requirement in North Carolina, so you must keep a policy at all times if you own a car or drive one. If you are unhappy with your current coverage, you are free to switch at any time.
Switching car insurance is fairly easy and straightforward, and the first step is gathering your current policy. Your current policy tells you several vital things.
First, it tells you the VIN from your vehicle. Secondly, it tells you the coverage types and amounts that you currently have. Finally, it tells you the lienholder’s name and address. Your current policy documents also tell you the costs of your policy.
These documents provide vital information to you about your current coverage. You will need it to get a new quote, as it will make getting a quote somewhat easier.
Find the Other Documents You Will Need
Next, you will need to gather some other documents when you are changing auto insurance providers. The main thing you will need is your driver’s license.
The insurance agent will ask for your driver’s license number and the issuing state. The purpose of this is to run a driving record check on you, and they can’t do this without your driver’s license number.
Your driving record affects the rates you pay for your coverage. It also affects an insurance company’s willingness to provide auto insurance to you. If you have a blemished record, you might face more challenges getting coverage.
Determine If You Need to Make Changes
As you prepare to change your auto insurance policy, you might want to consider making changes. When you switch companies, it provides the perfect opportunity to make changes.
You might want to add or delete some coverage types. For example, if you recently paid off your car, you might want to remove (not recommended) your collision and or comprehensive coverage and have liability-only.
This time is also a great opportunity to change your deductible. Many people have questions about choosing their deductible. The main thing to know is that you will pay more for a lower deductible.
Having a higher deductible results in lower premiums, but it also requires paying more if you ever file a claim. You should carefully think through this decision before making it.
Contact One or More Insurance Agents for Quotes
The next step you can do is to contact one or more insurance agents to ask for quotes. If you want to know how to switch car insurance, it is probably because you feel you are paying too much for your current policy.
If you aren’t sure if you’re paying too much, ask for quotes. The primary thing to know about this is that you must ask for exact quotes. In other words, the quotes should provide the same coverage types, amounts, and deductibles.
Compare the Quotes and Choose One
When you receive the quotes while switching auto insurance providers, you must compare them. Comparing them is simple if they are the same.
To compare them, place them side-by-side. First, look at the coverage types to make sure they are the same. Next, look at the coverage amounts to confirm they are the same. Finally, compare the deductibles.
As you view the quotes, look for any extras that come with a specific policy. For example, some companies might include roadside assistance coverage for free, while others don’t.
While you might not need the extras that come with a policy, they are worth something, as you might need to use them at some point. As you compare the policies, you can choose the best one for your needs.
Pay the Premiums
After deciding on a company, you can start the policy by paying the premiums in person, over the phone, or online. Some insurance companies require paying six months of coverage upfront. Other companies require only one month’s premium.
You’ll have to pay whatever the insurance company requires to start your policy. The good news is that once you pay the necessary premiums, your coverage will begin. You will instantly have a new auto insurance plan for your vehicle.
Cancel Your Original Policy
The final thing you must do when switching coverage is to cancel your original policy. Your current insurance agent might not want you to cancel it, but it’s your choice.
You shouldn’t cancel your original policy until after your new coverage starts. If you cancel it too soon, you can experience a lapse in coverage.
You might think that a lapse in coverage for a day or two is not a big deal, but it is. Lapses in coverage have consequences. One consequence is that it puts you in a high-risk category of coverage. As a result, your premiums might increase.
It’s also essential to wait to cancel until you have a new policy in place. In fact, you should wait until you have the insurance documents in your possession before canceling.
Change Insurance Companies By Calling Us
You can change insurance companies by making one phone call. It’s that simple. When you decide to change, make sure you choose a reputable company and ask for the right types of coverage.
If you are interested in getting a free auto insurance quote, contact us at Amistad Insurance Services. We can provide a quote for you in minutes and start your policy right away.