Jumping Ship car insurance cheaper? Watch out

There are many reasons why insurance customers drop their coverage to go with a new insurer – not the least of which is to get cheaper car insurance . Other reasons may include moving to a new State, the disposal of a vehicle and the purchase of a new, or simple unsatisfactory.

However, this can wind with having to pay a higher price of auto insurance, if not go about making the switch carefully.

This is a contract

Remember that your insurance policy is a legal agreement between you and the insurance company. As all legal contracts, there are terms: how long the contract performed (usually six months, to the point that it must be renewed), the obligations of each party to another (you pay the premium set in a timely manner and the insurer covers losses up to the amounts specified), and in what circumstances the agreement becomes null and void (you cause an accident while intoxicated or your vehicle out of loans at an unauthorized driver) and so on.

In addition, a legal agreement requires that a party give advance notice to another if they plan to cancel for any reason. This is where many people make the mistake when insurance companies – switching and winds up them cost money.

Where you go bad

The common misconception is that an insurer simply nullify the policy, if the insured stop paying the premium. This is true, but is not so simple.

Only If you stop paying the premium in the middle of the term (before it is up for renewal), you are legally in breach of contract.Yes, the insurer will cancel your policy (in some cases, after a period of grace and having served written communication), but then the company will proceed to notify these demigods tinned, known as the "credit bureaus" that control both on the lives of people who work and make sure they are punished again for every small mistake. in short, will be penalized with a black check based on the credit score that ultimately defines who you are – and this means higher costs, when you go to buy car insurance again.

Will also infect you with the dreaded "gaposis" – a gap in coverage that will definitely hurt when you try to secure a rate of cheap car insurance with a new company.

Protect your computer

It's not hard to make sure you don't give an excuse to punish is the system company. just do the smart thing, as you would any contract – inform the insurer in advance After the comparison car insurance rates and find a better deal with another insurer, serve your current insurer with notice via email or telephone. Then, wait until your current insurer sends you termination modules via USPS.

First of all, however, you want to review the current policy of drive and make sure there are no penalties for canceling a politics. and, above all, make certain that you are not left without coverage while driving the vehicle communication is the key here; most insurers will help you coordinate the cessation of your old policy with the beginning of a new one, so you have a continuous coverage as required by the laws of the State of insurance – but only if you keep them informed.

Get a new car or newer?

The same rules here if you want to change vehicles during the period of politics. Yes, the policy covers the driver, but also to a specific vehicle – so if you are disposing of an old and pick up a newer, be sure and inform your insurer before the time, so that the transition can be properly coordinated – regardless of if you want to change insurance companies.