Insurance policies are considered to be legal contracts. The insurance company agrees to pay you a certain amount of money in the event of a covered loss, and you agree to pay them a premium amount each month.
Tens of millions of people purchase car-insurance coverage each year. This makes the auto insurance industry one of the most competitive industries in the country. Because of this, companies offer many different discounts for transferring an existing policy.
For instance, are you fed up with your current car insurer? Are they giving you all kinds of excuses as to why they can’t payout on your claim? If you answered “Yes” to either of these questions, then it is time to make a change.
Here are reasons why you should consider transferring your car insurance policy:
No Claims Discounts
If you have been paying for car-insurance for many years and never made an insurance claim, you should still be entitled to a discount. Many car insurance companies offer a “no claims discount” which reduces your premium if you have never made a claim against your policy.
You can only get this discount if you have been insured with the same company for a certain amount of time and you have never made a claim. However, if you are about to renew your current policy and don’t want to spend more on renewal fees, you have an option.
You can move your policy over to another insurer, where you will then be entitled to the no claims discount again. This means that in the long run, by transferring policies, you will actually save money on both renewal fees and premiums.
You can save money on your car-insurance policy by transferring it to a different company. By combining policies, you can take advantage of multi-policy discounts that many insurers offer for bundling several policies under one provider.
Some providers offer additional discounts for bundling even more policies under one roof. You can also save money by taking advantage of multi-policy discounts from your current insurer as soon as your policy renews or once you change insurers at all.
If you have multiple drivers, you could save money by adding them to your current policy. Your insurer will look back over the past three years when calculating your premiums, and drivers who have been driving for fewer years will be charged more than those who have been driving in the long run.
However, if you add them to your policy, they will then be assigned more “experience” points, and their premiums will decrease accordingly.
Deductibles and premiums
You can also transfer your deductible amount when you move your auto insurance policy. This means that if you had selected an affordable deductible amount before when you got a new vehicle, you could still use that deductible amount with your new insurer.
When it comes to premiums, the rates will depend on the type of vehicle, where it is garaged and how many miles it usually covers. The good thing about transferring your policy is that you will be able to keep track of the rate changes so that you do not end up paying more than required.
Convenience is one of the best reasons why you should transfer your car-insurance policy. The issue with insurance companies is that they are centralized, and their systems may not be very efficient. This means that it may take more time to get a claim approved, even if the process runs successfully.
You can send your policy link to anyone you want to access it directly instead of filling out forms and waiting for approvals from the insurer. Ultimately, it is much easier for you to share your policy with other people, such as your friends, family members and colleagues. This is because everything would be accessible online without visiting your insurance company.
File sharing services such as Dropbox are very useful in this case since you can easily share files with people without worrying about transferring them through email.
Availability of cheaper coverage
The biggest reason why you should transfer your vehicle insurance policy is the availability of cheaper coverage. For instance, you are in the state of Texas and are paying a higher insurance premium because you’re also paying for SR22 due to a previous major traffic violation, then it is only normal that you would want to switch to an insurance provider who can provide you with the cheapest sr22 insurance Texas. Besides, the customer service provided by the other companies may also be great. Their customer service agents prove to be helpful and knowledgeable on their policy packages.
For instance, if you have a problem or question with your policy, all you need to do is call the customer service number, and they will be happy to explain it. All in all, transferring your car-insurance policy is a great way to get cheap rates and excellent services as well!
As you can see from the above, there are many reasons why you should transfer your car-insurance policy. You need to do proper research on a number of companies to ensure that you make the right decision for you and your family.
If you look at it from a negative perspective and don’t change things, you could miss out on some great opportunities that crop up.