5 Reasons to Change Car Insurance Companies

As a motorist, you are typically required to maintain car insurance in order to operate your vehicle on public roadways. Although this coverage is mandatory, you have the freedom to choose the car insurance company that provides the service.

Financial experts recommend that you regularly review your car insurance policy to ensure you have adequate coverage. During this review, you may find it beneficial to switch to another insurer. Your current policy may have been the least expensive when you originally purchased the coverage, but this may no longer be the case.

Depending upon your circumstances, the auto insurance policy and company you chose may no longer fit your needs. The following are the most common reasons that drivers switch to a new provider.

Rate Increase

A rate increase is the most obvious reason to research your options. When your current insurance premium goes up, it is time to shop around to see if you can get the same coverage from a different company for less. It pays to shop around even if the rate increase is the result of multiple claims or your poor driving record. You should compare several car insurance companies.

Because numerous factors are used to determine your premium, the rate quote will vary among the companies. In some cases, you may be able to get better coverage for the same or a lower premium based on discounts and incentives from a different company.

Unacceptable Policy Changes

You may discover that your company provides little advance notice or makes changes that you find unacceptable. They may have also curtailed or eliminated certain benefits that your policy previously included. These changes may not benefit you or may be provided at a higher cost. As a result, the company may no longer offer the particular types and amounts of coverage that you need or want.

Poor Customer Service

Your auto insurance company should answer questions quickly and resolve issues satisfactorily in a timely manner. The company should also handle any claims quickly and efficiently. If you have experienced poor service, the financial relationship may not be worth the aggravation. You may also want features like:

  • Better access, such as 24-hour assistance.
  • A more user-friendly internet portal.
  • Easier payment options

You may consider switching if your current company is not meeting your customer service expectations.

Changes in Your Insurance Status

You may need to switch car insurance companies based on changes in your life. These include:

  • Buying a new car
  • Adding an additional driver like a teenage child
  • Moving to another state
    • Your current company may not be licensed to issue policies in your new place of residence. The changes and additional coverage you might have to purchase may also adversely affect the discounts for which you qualify.

If you have cleaned up your driving record, you may also qualify for coverage from other car insurance companies that typically avoid higher-risk drivers.

Changes in the Status of the Company

You may want to switch if your current auto insurance company faces financial difficulties and is raising rates to compensate. A rating agency or your state's department of insurance may have downgraded your insurer. This indicates that the company is experiencing problems that negatively affect their ability to pay claims or provide quality customer service.

If you compare policies, you may be surprised to learn how much you could be saving. Being complacent with your insurance may cause you to pay a higher premium than you should or have insufficient coverage. It is possible that your current policy provides the coverage that you need at the most affordable cost, but if it does not, it is in your best interest to make a change.