Things to know before switching insurance companies

1. Shop around before your renewal date

Before your policy comes up for renewal each year, your insurance company should send you a renewal package outlining all the details about your coverage, your deductibles, and the total cost of your premium (which may change year over year). Take this opportunity to start comparing the total cost of this policy with other providers – but just be sure you’re comparing apples to apples when it comes to types of coverage, insurance amounts and deductibles.

2. Online quotes aren’t binding

Don’t terminate your existing policy after you get an online quote from a different insurance company. An online quote is a quick and convenient way to get a rough idea of costs, but it’s still important to compare the premium, deductibles and coverage against your existing policy. Before switching, request a detailed quote to ensure you have all the information you need to choose a policy that meets your needs.

3. The discounts you currently enjoy might not transfer over

Many insurance providers offer discounts for bundling your home and auto insurance or insuring multiple vehicles, so – if you’re planning to only switch over one policy, you may lose access to these savings.

4. Make sure your coverage is up to date before shopping around

Your insurance coverage should reflect your current life situation, so – if your policy isn't up to date, you may be paying more than you need to. Maybe you still have a secondary driver listed on your policy that no longer uses your car, for example, or maybe you’re more comfortable paying a higher deductible amount now, which could reduce your overall premium. Modifying your existing policy to ensure it matches your current needs is the best place to start before shopping around.

5. Rates don’t tell the whole story

While it’s tempting to save as much as possible when it comes to your insurance, you’ll want to think about value rather than simple cost savings. Does the new provider you’re considering have a good reputation for claims service and customer support? Do they offer the coverage types that best suit your needs? Do they offer maximum limits on certain coverages? Remember that compromising on your coverage can be costly – so it’s important to stick with a company that offers the protection and support you care about.

6. You may have to pay cancellation fees

If you want to switch insurance providers before your policy is up for renewal, you may have to pay a cancellation fee – so be sure the savings you’re earning by switching are greater than the cost of cancelling. If they’re not, you may want to wait until your renewal date to make your move.

7. Watch out for a gap in coverage

When transitioning between policies, it's crucial to ensure that your new policy takes effect immediately after your old one ends. If it doesn’t, you may not be covered if you’re involved in an accident or need to file a claim during this period.

8. Other financial institutions need to know

If you have a mortgage or a car loan, maintaining insurance coverage is usually mandatory, so you’ll need to provide your lienholders with your new proof of insurance.

At the end of the day, switching insurance companies can be the right decision for you – as long as you do your research first. If you’re insured with The Personal and are considering cancelling your policy with us, please review our cancellation guide or – for one-on-one support – reach out to us directly at 1-888-476-8737.