Essential Tips for Switching Car Insurance To Another Car

As a car driver, you probably don’t want to have only one car. Nor, you just don’t want to drive the same car all the time. In this state, you might willing to switch your car to the new one. As well as switching car insurance to another car if you already have one policy.

Additionally, you may want to buy another new car so you won’t get bored of the old one. By doing this, you probably reconsider applying for auto insurance. To get secured with your other car, you need to determine once again your insurance coverage limits. Hence, you claim a new car insurance.

Methods for Switching Car Insurance To Another Car

Generally, switching car insurance to another car is not difficult to do. People probably think that transferring the car insurance you already have to another one is complicated. Yet, you can do it in the easiest way you can reach. 

You as the policyholder can access your insurance company’s official website to renew or switch your policy. However, this regulation depends on the insurance company’s services. If they offer to get a quote from an online website, you can simply rearrange your policy through their online service.

Additionally, if your insurance company doesn’t provide online quoting, you can straightly contact your insurance agent. Meeting the agent will help to update your insurance policy without coming to the office. Your insurance agent will be the third party to connect you and your insurance agency. 

Steps To Transfer Your Insurance Policy

In furtherance of updating your insurance quote, you must prepare related documents for the policy claim. Those related documents include the basic profile of yourself and basic information about your car. The basic information consists of the VIN of your car, car model, and car year.

At the same time, you can consider again to your insurance policy limits. Whether you want to upgrade it or summate the additional coverage that is offered by the agency. However, if you switch your car insurance to another car, you would keep your car secured by the same insurance policy.

Yet, if you think your new car required more coverage, you can additionally add another coverage option. If you come with this plan, your insurance premium probably increasing as well as your coverage is upgraded. Even though your quote cost is raising, the security of your car would be even more.

1. Determine The Coverage Selections

The amount or the type of coverage option that you choose must be fitting to your car assurance needs. In one word, you should acknowledge what you want to cover and secure your car. This circumstance is necessary since you couldn’t pay too much for your insurance coverage.

Additionally, if you are currently in an insurance policy with a minimum coverage option, you could be uninsured. For instance, if your car is the old type one, you don’t have to apply high-cost insurance policy. This is due to the requirements of your car probably not as huge as the new car.

Yet, to minimize the worst thing that may happen, you have to apply at least a minimum coverage option. This will secure your car as if it could be involved in an accident. Generally speaking, you must limit your budget toward your insurance requirements so you won’t spend too much money only on this policy.

2. Examine The Possible Penalty

Unfortunately, you need to know that any insurance company would give you a penalty. This idea comes in case you are going to cancel your policy. Nonetheless, not all insurance agencies have required that kind of regulation in their policy letter. Some insurance companies freely give you a cancellation option toward your policy.

But, if you have a remaining policy in your current policy form, the insurance agency probably would refund it. Yet, the other company could add a charge to your cost if you cancel your current policy. 

In this circumstance, you apparently need to hold your cancellation until the end of your contract. This way is taken in order not to get any additional cost for your coverage. However, you can ask the insurance agency’s customer service to know about the penalty regulation.

3. Comparison Among Insurance Companies

Generally, before you decide to take car insurance, you have to shop around and compare the insurance agencies. This term aims to get the best deal for switching car insurance to another car. However, if you feel have to stick to your current insurance, you just need to upgrade your policy instead.

Nevertheless, if you want to jump over another insurance company, you need to hand out documents that have been asked for. With this requirement, the data is used for fitting your insurance needs and the cost you have to afford. 

You can get help from your agent or you can simply check the insurance quote using an online quote tool. By using this tool, you can compare at least three companies to know which one is offer the greatest deal for your insurance. Most likely to be compared is the cost reduction that is provided by the insurance agency.

4. Asking For The Possibility of Extra Cost 

Additionally, before you start over your insurance policy, you need to be acquainted with the possible extra cost. Some insurance agencies would give you an additional fee for your coverage option through the monthly payment or upfront payment method.

Especially when you wish for switching car insurance to another car, your insurance company expenses an administrative cost. Apparently, you have to acknowledge this policy that could be required by your insurance agency. The additional cost is probably different for each company.

5. Contact Your Agent

After acknowledging your car insurance needs, the next step is to contact your insurance agency. You can call by phone or apply straightly through the official website. Ask your insurance agent about the best deal to claim your policy. 

As your agent would assist you with a suitable coverage option, you won’t get difficulties to make a decision. You are most likely to get advice to take the greatest coverage option for you to switch your policy. Additionally, cost reduction seemingly would be required for your insurance if your agent assists you in a good way.

6. Collect Your Related Information

In addition, to claim your policy, you have to gather some related information about you and your car. You must hand this collected data to your insurance company through the agent or submit them through the official website. 

The related information includes the VIN (Vehicle Identification Number) of your car and the safety feature that is installed on your car. Additionally, information about your car model and the production year of your car is also required.

7. Cancel Your Old Insurance

Sadly, the old insurance policy you applied for is not going to be automatically canceled. In order not to get double payment for your insurance policy, you have to cancel your old policy first. This regulation needs to be taken if you are switching car insurance to another car.  

In fact, you apparently need to sign a cancellation form and hand it to your insurance company. This letter is used to notify your agency if you want to switch the policy to another car. The notification letter is telling the agency that you want to terminate your current insurance coverage.

Nonetheless, you have to make sure that your payment is surely stopped at that moment. If you are currently using an automatic payment method, you can stop the automatic process through the online service. Yet, if you are using a bank payment method, you need to contact your bank’s customer service to cut off the payment.

8. Print Out Your New Insurance Proof

Printing the proof out is necessary in order to show your current insurance if you are involved in an accident. This proof is used as your insurance status after switching your car insurance. 

Switching Car Insurance To Another Car Requirements

When you are switching car insurance to another car, the most important requirement that needs to be reconsidered is your minimum coverage. Yet, this requirement probably varies for each state. Some state insurance coverage requirement is liability coverage.

However, if you want to transfer your policy, you might increase your coverage limit. For instance, if you are purchasing a high-value car, your insurance will automatically get the extra coverage option. In this circumstance, your cost and rate would be raising. So, you have to prepare extra money to pay for your policy.

Additionally, collision and comprehensive coverage options are probably added to your minimum coverage option. Those two coverage options are the basic requirement based on each state’s law. 

Get Prepared and Start Switching Car Insurance To Another Car

Basically, if you are switching car insurance to another car, you must know about the differences among your insurance policy. Furthermore, you need to discover other company deals as well. You probably want to keep your insurance with your current company, yet you are highly suggested to fit your policy requirements.

As mentioned above, if you want to switch your current insurance to another car, you should stop your current contract for your old car. Fret not, you still can get SORN (Statutory Off Road Notification) provided by the Post Office for your old car. Also, it won’t affect your insurance cost since it is a free-charge service.