Some people switch auto insurance companies every few years. Others stay with their carriers for many years. While there is no wrong or write time to switch carriers, there are a few common reasons people change their insurers. Below are some of these reasons.
Most people switch insurance carriers for better rates elsewhere. Maybe you have been with the same company for years, but something has changed, and your carrier no longer has the best rates for you.
For example, you may find better rates elsewhere if:
- You add or remove drivers to your policy
- You add, remove, or switch cars
- You change your place of residence
- You experience an auto accident
Don't forget that even though insurance companies use nearly the same factors to calculate rates, they give different weights to these factors.
Better Customer Service
Some people also switch insurers when they think they can get better customer service elsewhere. Some of the customer services that may attract you to a carrier include:
- Clear and fast communication channels
- Fast claim processing
- Few complaints from customers
- Clear answers or clarifications to your queries
Friends, family members, mechanics, insurance agents, and even online reviews are great sources for information on customer service.
Benefits or Perks
Insurance companies offer different perks to attract and retain clients. Typical perks include:
- Accident forgiveness
- No-claim bonuses
- Free roadside assistance
For example, a company with free roadside assistance may tempt you if you drive a lot but currently pay for roadside assistance.
Some insurance companies offer both standard and non-standard coverage while others specialize in non-standard coverage. If you buy a unique car, you may want to move to a company that specializes in your type of car. For example, you may want non-standard insurance if you acquire:
- A classic car
- A vintage car
- A racecar
Some insurance companies also specialize in high-risk drivers, such as driers with DUI (driving under the influence) convictions.
While some major insurance carriers do business all over the state, some small carriers operate in limited areas. Thus, you will need a new insurance company if you relocate, and your current insurer doesn't do business in your new neighborhood.
Hopefully, you will find great coverage at reasonable prices if you decide to switch carriers. Take your time to compare insurance companies and their quotes before the switch. An auto insurance agent can also advise you and help you find the best company for you.