7 mistakes to avoid when switching car insurance
So after they raised your rates for the third year in a row you’ve finally decided to find a new car insurance company, eh? Good for you.
Switching car insurance at renewal can save you some cash if you know what you’re doing. Sometimes it can even be worth it to cancel mid-policy. If you’re thinking of switching, it’s important you know what you’re doing as well as what not to do.
You want to get the best car insurance rate at renewal time and avoid mistakes that can result in higher premiums. If you’re switching car insurance, here are seven things to avoid:
1. Not making sure your old policy is cancelled
When you switch car insurance you have to do all the work because the companies rarely care for you. Think you’re done just because you didn’t renew? Think again. You might still be billed automatically by accident. Be very clear with your old insurer that you’re cancelling your policy. Follow up to make sure they aren’t still billing you the following month.
2. Not fully understanding the extent of your coverage
People don’t want to think about insurance. We get it, life is busy and no one wants to comb through long documents or try to understand all the jargon that companies throw at you to satisfy the world’s need for lawyers. However, this is important stuff. You need to think about it at least at first to make sure you’re paying for the coverage you need. Don’t assume you’ll be covered if a storm drops a tree on your car, make sure. Ask your broker a whole bunch of questions and sleep easier knowing that you won’t be left out in the cold because you thought you had coverage you didn’t.
3. Buying the minimum coverage because you want to save money
Don’t just cheap out when it comes to the coverage. If saving every last cent on your premium is all that’s on your mind, you may find yourself underinsured at a critical moment in the future. Understand the limitations of minimum coverage and figure out which extensions might work in your situation.
4. Not comparing apples to apples
Not all car insurance policies in Canada are the same. Just because a company is good at one thing doesn’t mean it’s good at a different, yet slightly, similar thing. You might see a good testimonial online or get a recommendation from a friend an insurance company has a great home insurance policy. You might assume that the same company could be the right fit for their car insurance. However, there’s more to it than that, and not every home insurer is the best choice for auto.
5. Not shopping around thoroughly
Just because that cute/clever/funny commercial told you to switch insurance doesn’t mean you should go to that company, even if they’re giving you a good quote. There are a lot of options out there and you should be aware of them. The best way to compare auto insurance? Right here with an online comparison engine. It’s fast, simple, and can compare quotes from a dozen companies in less time than you can compare two.
6. Not looking into any available discounts
While a good insurance broker automatically tries to find what discounts could be available to you in order to sell you on a lower rate, it doesn’t hurt to make sure by asking your insurance broker or agent about discounts. You can also look up what discounts might be available in your province.
7. Lying
Sometimes we genuinely make mistakes filling out forms or we forget details of events. When most insurance companies find out a person has provided false information, it’s very damaging. If they determine it to be willful deception, they’re guaranteed to deny your claim and/or cancel your policy. Not only will you be out of luck paying for that claim, you’ll also get a terrible rate when you get a new policy as no company wants to risk being ripped off.
It’s important to carefully check your car insurance application and verify that the information is accurate before you turn it in. Avoid these mistakes when switching car insurance, and you could save big.