Whether you want to renew or cancel your current policy, it’s important to consider a few factors. Timing, analyzing, shopping, and deciphering are all words that relate directly to insurance policy renewals. Renewing or cancelling a policy shouldn’t be difficult, and you can probably gain a better rate during the process too!
Cancel and Renew On Time
If you are going to cancel your current policy, make sure that you cancel at the right time. Typically, it is best to cancel or switch policy within one month of your current expiry date. If you want to renew your current policy, make sure to wait until the right renewal time. This way, you can avoid any administrative (or other) fees. When cancelling, be certain that your new policy is ready to go before cancelling your old one.
Scrutinize Your Current Policy
Take a good look at your current policy. Review renewal information, and find out if your insurer will offer you a better rate if you renew. This is also an optimal time to look at your current coverage and costs. If you plan on changing insurers, make sure to have your current policy, costs, driver’s license, and vehicle registration in front of you when you call your new insurer.
Give Insurers a Reason to Compete
Before your current policy expires, call various insurers (with good track records) to notify them that you may cancel your current policy. You will quickly discover that competing insurers are more than happy to pick up where your current company left off. A simple phone call is all it takes to get insurers to offer you competitive rates.
Inform Your Current Insurer
Even if you don’t plan on switching insurers, inform your current insurer that you may begin to shop around when your policy expires. Simply providing a customer service representative with this information should be enough to get your insurer to offer a lower rate. If this tactic does not work, then maybe it’s really time to switch!
Renewal Jargon and Paperwork
There’s nothing overly complex about renewing a policy. If your current policy works for you (and you have received a slightly lower rate this time around), go ahead and renew. Only, make sure that you understand any paperwork you have to sign. If you aren’t sure about certain terms or agreements, take a moment to look at an online insurance dictionary. These reference materials are helpful when it comes to deciphering complex insurance terms!
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Understanding Insurance