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Reasons To Change Auto Insurance Companies

Summary: Reasons to Change Auto Insurance Companies

Reasons to think about switching companies include: rude customer service, bad user experience, cost issues, increased rates, and major life changes.

Ideally, your experience with your car insurance company will be a good one. However, in some cases your car insurance company may not meet your needs, whether it’s in the realm of customer service, claims, or your coverage needs simply change.

We’ll go over some of the reasons why you might wish to start shopping for a new auto insurance policy.

Rude or Unresponsive Customer Service

Auto insurance is a service-driven business, so good customer service is a priority. If you’ve had consistent problems getting service or attempting to resolve a claim, it may mean it is time for you to build a relationship with a new car insurance company.

Before you switch, however, be sure that you’ve researched the other company. You can check your state’s Department of Insurance to view the company’s complaint ratio. Consumer Affairs can also be a great place to read reviews of auto insurance companies.

You can also tap your resources to determine which companies offer a good experience. Talk to friends and family members who are satisfied with their current companies and determine if you are interested in getting quotes from any of those providers.

Poorly Designed Website and Mobile App

Technology is king in today’s society. It is up to the insurance company to keep pace by providing a website that is easy to use and navigate.

Features you may want to look for include:

  • Online payments.
  • Mobile access.
  • Chat system for customer service.
  • Mobile apps for payments, claim tracking, etc.

An up-to-date website and mobile applications that are easy to use allow you to manage your insurance policy efficiently. A website that is hard to use or is consistently broken can be a reason to change car insurance companies.

Pricing Problems

Auto insurance is a partnership. When you maintain a good driving record and avoid accidents, the payoff is typically affordable car insurance premiums.

A company interested in a long-term relationship will generally fight to keep your business by maintaining your rates. However, in some cases, cost increases are unavoidable; for example, if you’ve added drivers, had an accident, or if your car insurance company experiences a rate change across the boards.

When your rates increase each time you renew for no clear reason, comparing quotes for other car insurance companies may be your best bet.

Prior to switching away from a company with whom you are otherwise happy, however, speak with your auto insurance agent. He may be able to explain why your premiums are increasing and help you remedy the situation, e.g., by applying certain discounts, helping you combine policies, etc.

Lifestyle Changes

Maybe your need for new insurance has nothing to do with the provider. Lifestyle changes can have you looking to switching, as well.

  • Buying a second car.
    • Can you get a multi-car discount from another company?
  • Moving to a new state.
    • Local insurance providers might offer lower premiums.
    • You might not have any choice if your current company doesn’t do business in your new state.
  • Adding a driver.
    • Adding another driver can affect your rates. For example:
      • If you’re adding a teen driver, look for a company with student discounts.
      • If you’ve gotten married, check for companies with applicable discounts.
  • Buying or selling a home.
    • Bundling or unbundling policies can change the price.

Whenever you look for a new policy or insurance company, remember to thoroughly shop around and get several car insurance quotes. Also, be sure to dig into the details of the coverages provided. Price isn’t the only factor; loss in coverage benefits may not balance the extra savings from a cheap quote.

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