Factors to Consider Before You Switch Auto Insurance Companies

The two main reasons for switching auto insurance companies are poor service and increasing rates. If your insurance premium starts to increase, then switching companies is a good idea.  However, before you make a switch, you should consider a few factors. In doing so, you may be able to save money and time, as well as avoid the hassle during the switching process.  

Eligible Discounts

If you think your current car insurance rate aren’t competitive, then ask your Round Rock Auto Insurance agent to assess your policy. Depending on what the insurer offers, you may qualify for car insurance discounts based on a few factors, such as:

• Security Features: By putting security features such as an electronic stability control (ESC), anti-lock breaking system (ABS), theft prevention system or device, auto location device, or a car alarm, you may be qualified for further car insurance discount.
• Garaging place: The place where you usually park your vehicle when not in use also affect your car insurance rate. If you live in an area with high crime rate or considered a flood zone, this may badly affect your premiums. If you move to a better location, you may be able to get lower insurance rates—without changing to a new auto insurance provider.
• Driving History: If you were recently involved in an auto accident or had traffic violations, these incidents may affect your driving history negatively, and insurance providers may increase your insurance rates. However, if you have a clean driving record, you may be eligible for great discounts.

Check the Security of Your Policy             

Your new insurance provider may have a stricter cancellation process, or stronger policies on terminating you in case that you ever make a claim. Hence, you should understand their terms as regards to claiming benefits and cancelling your policy. It’s wise to do this right from the start, when you are first setting up your insurance policy.

Know What Will Happen If You Cannot Make a Payment

One thing that can go wrong in your new coverage is that you might have setbacks where you can’t make a payment on time. But, what happens with your auto insurance? Do they affect your policy right away? Or will they work with you until you can make a payment? There’s nothing more embarrassing than having to dispute with an insurance provider over your payment amount when you’re really struggling making payments. Talk to your insurer ahead about this concern, and ask them if they have a program that helps those customers who struggle due to loss of job or other situation where they can’t make payments.

If you want to know more information or tips for switching auto insurance companies, give a Contractors Insurance Services agent a call at 512-518-6292.