Pros and Cons of Switching Insurance Companies Mid-Policy-Term to Save Money
You've only had your new policy with your current auto insurance provider for a few months, but you get curious about how much you could save by switching companies. Sometimes, it is well worth it to make a change even though you are in the middle of an auto insurance policy term, but not always. Here is a look at some of the pros and cons of switching insurance companies in the middle of a policy term.
Pro: A New Company May Offer Attractive Discounts Just for Switching
Insurance companies are always looking to bring in new customers, so they can offer some pretty attractive promotions to get you to switch. For example, you may be able to start your policy without having to pay anything more than your first monthly premium payment. So, if you are finding quotes online for cheaper prices than what you are currently paying, it may not cost you anything at all to make a switch.
Con: Switching Could Mean a Lost Opportunity for Savings When You Renew Your Policy
Drivers who carry auto insurance with the same company often see their premium rates go down once they renew their policy after the end of a policy term. If you have not been with your insurance company through a complete policy term, it may be worth waiting through to the end of the policy before you switch just to see if you get a more affordable rate than what you were getting.
Pro: You Could Potentially Save Yourself a Lot of Money
The typical premium term for auto insurance is several months, so if you do decide to switch policies because you have found a cheaper rate even though you are in the middle of your policy term, you could save yourself a lot of money when you figure up how much you will be saving for the time you have left.
Con: Switching Auto Insurance Providers Too Often Can Have Negative Consequences Down the Road
One thing a lot of auto insurance companies will ask when you request an insurance quote is how long you have been with your current insurer. People who switch insurance providers on a regular basis may have to pay more for their policy. Even if the initial quote you get looks pretty attractive, it could possibly affect your rates later on if something happens and you have to go back to the other company.
If you are interested in looking for cheaper insurance options, contact a company near you and request an insurance quote.