When To Switch To Another Car Insurance Company

Sherri Ramos

As a car owner, you should be careful about your choice of an insurance company. Some factors you should factor in your selection include your financial status, risk factors, coverage, and the insurance company's terms. Here are some justifications for switching to another car insurance.

Change in Circumstances

Married people often pay less for car insurance policies than single people. Therefore, if you recently got married, consider switching to another car insurance.

Another change in status that should prompt you to go to another insurer is if you move to a residence near your area of employment. This means the daily usage of your car will be reduced. As a result, the insurance company will consider you a low risk. Furthermore, a change in employment means you will get better premiums.

Inadequate Coverage

Car insurance companies provide add-on coverage to reinforce the coverage provided by a basic plan. If you are susceptible to a specific risk, seek the right coverage for your car through add-on covers. However, if your current insurer doesn't offer the add-on cover you need, you might consider another car insurance company.

For example, your primary plan may not cover engine damage because of waterlogging. Therefore, if you reside in an area that experiences waterlogging and floods, consider getting this specific add-on cover through another insurer. 

Better Terms After an At-Fault Accident

Another reason to shop for another insurer is in the years after a driving violation or car accident. If your premium rates increased because of a speeding ticket, drunk driving, or an accident, check back every few months to see if your rates have decreased.

Insurance companies weigh driving violations and accidents differently. For example, one insurer may stop penalizing you for an at-fault accident after five years, while another may cease the penalties after three years. If there is a chance you will get better terms with another insurer after a traffic violation, consider switching to another car insurance company.

Change in Credit Score

Insurers check a driver's credit score when setting policy rates. If your credit score is high, you will likely get high rates. This is because you are considered a higher-risk client than one with a low credit score.

If your credit improves, you may be eligible to purchase comparable coverage for a lower rate elsewhere. However, check whether your current insurer will consider reducing your rates in light of your improved credit score.

Reach out to an auto insurance provider for more information.