do you really need the extra insurance?

3 Common Reasons People Switch Auto Insurance Companies

by Rick Mcguinness

Automobile owners are required to carry auto insurance in most states, but the good news is that there are a lot of options when it comes to insurance companies that offer auto insurance policies. If you own an automobile, you are free to select an auto insurance company, and you can switch auto insurance companies at any time. While many people buy an auto insurance policy from an insurance company and continue to renew the same policy year after year, there are situations where switching auto insurance companies can be a good idea. Some common reasons why people switch insurance companies and buy new auto insurance policies include:

Desire to Save Money

Auto insurance is a great financial safety net in the event that you cause a car accident or your automobile is stolen, but no one wants to spend more money on insurance than they have to. One of the biggest reasons people switch auto insurance companies is in order to save money. If you have had an auto insurance policy with the same company for years, you may want to spend a little bit of time shopping around to see if you can find an insurance policy with a different company that provides the same coverage for a lower price. When you purchase a new car or add a driver to your policy, you may also want to consider switching auto insurance companies if a different company has a policy that is less expensive.

Poor Experience With Customer Service

Most people pay their auto insurance premiums month after month but never have any direct interaction with their auto insurance company. However, if you have an issue that you need resolved, if you have questions about your policy, or if you need to make a claim, it is natural to expect good customer service. In the event that you need assistance from your auto insurance company and you receive poor customer service, it can make sense to switch to a different auto insurance company that is easier to work with.

Negative Changes to Your Driving Record

If you accumulate too many points on your driving record or you're convicted of a DUI, your insurance company may increase your rates drastically or opt to cancel your policy, leaving you without auto insurance. Luckily, there are many auto insurance companies that specialize in providing auto insurance to people who have issues with their driving record. In the event that your auto insurance is canceled or that your rates increase substantially after a negative change to your driving record, it should not be difficult to switch to a new auto insurance company.