Car insurance can be a confusing topic for many, which is why drivers tend to avoid dealing with insurance as much as they can. Unfortunately, it’s a vital part of car ownership, something that no car driver will ever be able to avoid for long.
Some people stay with their car insurance providers forever, some do not. Here are the most important reasons why drivers switch car insurance, despite all the hassles and headaches that come with doing so.
Most car owners switch insurance policies when they’re relocating to a different state.
This is mainly because not all car insurance policies are applicable in all states. Due to the difference in state laws and policies, some insurance agents are only licensed to work in one state, which means that you have no choice but to switch upon relocation.
It doesn’t have to be automatically out of state, either. Car insurance rates can actually vary depending on one’s home address. Even within the same state, a car owner living in an upscale area may be given a cheaper rate than someone who’s from the lower income areas, since these areas are usually associated with a higher risk of accidents and collisions.
If you’re moving, whether out of state or just across town, check to see the adjusted rates of your policy in advance. You might be able to save a bit more by switching car insurance policies instead of sticking to your old one. For example, Alberta insurance brokers charge about 25% lower premiums than those in Ontario, so if you’re moving from the latter to the former, it’s much better to check out local insurance providers instead of sticking to your old policy, even if you had that option.
High insurance rates
High insurance rates are the main reason why car owners switch insurance policies. Many shop around for cheaper policies and switch the moment they get the chance.
Before you go shopping around for a new policy though, it’s important to understand the different factors that can affect car insurance rates. Some are more common than others, but these will all come into play when your provider is determining what rate to charge you for insurance.
Your driving record says a lot about you as a driver. If you’ve been involved in plenty of accidents and traffic violations before, you can bet that your insurance rates would be pretty high, regardless of how many times you switch policies.
Younger drivers are charged higher rates than adults, since they tend to get into more accidents caused by inexperience and a tendency to get easily distracted.
Your credit score is used by insurance companies to determine how likely you are to make a claim. If your credit score shows that you are less likely to do so, they might be able to offer you better insurance rates.
Driving more miles over a specific period of time, especially if it’s above the average amount, can cause your insurance rates to increase.
Although it may seem discriminatory, gender actually plays a role in how your insurance rates are determined. According to statistics, men tend to get into a higher number of accidents than women, which is why their insurance rates are also higher.
Once you’ve figured out why your insurance rates are high, shop around for cheaper premiums but don’t switch immediately. This is because you can use the cheaper premium to counteroffer your insurer for a better policy. Many insurance companies would rather give a discount than lose a valuable customer. If they don’t take you up on your offer though, that’s when you should consider switching policies.
Poor customer service
Like in any other company, customer service can make or break an insurance company. Oftentimes, car owners go with agents who are easier to talk to and care more about specific car-related incidents.
Companies with bad customer service, on the other hand, tend to turn off customers for life, especially during high-stress moments such as after an accident. After all, no car owner would want to deal with an impolite, unhelpful agent after getting rear-ended by another vehicle.
Car owners who don’t feel like the insurer’s customer service is good enough will switch providers once they find better service somewhere else and there’s no other way around that.
Although switching insurance providers may come with plenty of advantages, do keep in mind that there are many disadvantages to switching as well. Most, if not all, companies will try their best to keep you as a customer, so they will try to solve your problem as much as they can. Some companies even give discounts to loyal customers, which makes it more advantageous to stay for as long as you need to.
Switching providers is not as easy as flipping a switch on and off, so before you make a decision, don’t forget to weigh all the pros and cons and to shop around for the best deal possible.