How To Switch Providers for Car Insurance in Denver, CO

Friday, 15 October 2021 12:21

If you're considering switching to a new auto insurance company, you might have some questions about the process. How can you tell if it's the right time to switch? What steps do you need to take to switch your car insurance in Denver, CO? And will switching affect things like open claims or your credit score?

Don't fret: we've got your back at Adler Insurance. Today, we'll break down everything you need to know about switching to a new auto insurance company.

When It's Best to Switch Auto Insurance

You can change to a new auto insurance company at any time! However, there are certain times when it makes the most sense to make this move. Here are a few examples:

  • You're moving to a new home- Car insurance premiums can be impacted by your ZIP code, your city, and even your state.
  • You have new drivers in your household - Is your teenager getting their license? Will there be another car in your garage soon? If so, it's a good time to gather quotes from various providers.
  • Your life is changing - Major life events, like marriage or a new job, will drastically alter your life. And they may impact your auto insurance needs and premiums too.
  • Your renewal date is on the horizon - This is a convenient opportunity to switch providers because you're less likely to have to deal with cancellation fees.
  • Your current insurer has poor customer service - Is your agent slow to respond? Did you have a frustrating claims experience? If so, it might be time to switch.

Again, you can change providers at any time. But if any of these situations sound like yours, then it's a great time to switch and save.

7 Steps to Switch Your Car Insurance in Denver, CO

Stick with these steps and you'll get your car coverage changed in no time.

1. Review Your Coverage Needs

Colorado has specific insurance requirements for every driver. More specifically, you are legally required to have the following minimum requirements:

  • Bodily injury liability: $25,000 per person and $50,000 per accident
  • Property damage liability: $15,000 per accident

That said, it's important to review your coverage options and your individual car insurance needs. Do you need to increase your coverage? Or would you like to add policy riders to your coverage (e.g., collision coverage, comprehensive coverage, uninsured motorist protection, roadside assistance, etc.)?

Having a clear idea of your car insurance needs should always be your first step.

2. Doublecheck for Penalties and Refunds

Take some time to review the fine print of your current auto policy. Look for details about cancellation fees and penalties.

In general, most car insurance companies charge a cancellation fee if you terminate the policy early. These fees may range from just $25 to 10% of your remaining policy premium (Insure.com).

Please note that you may be entitled to a refund if you switch well before your policy expires! For example, let's assume you paid for a 6-month policy and decide to switch after three months. In that case, your insurer should reimburse you for the remaining three months' worth of coverage (minus any cancellation fee).

3. Research and Compare Auto Insurers

Now it's time to gather some quotes. We recommend getting at least three quotes from different insurance companies. Make sure each auto insurance quote aligns with your needs (e.g. coverage types, limits, deductibles, etc.).

But don't base your decision to switch solely on price! It's worthwhile to consider other factors, like:

  • Customer service and past client experiences
  • Perks, special offers, and discounts for drivers
  • Company history and location
  • And more

4. Make Sure You Avoid a Lapse in Coverage

You do not want to experience a lapse in insurance coverage. Even if that lapse only lasts a day or two, you'll be at greater risk if you are in an accident. You may also incur fines and penalties, and you may even risk facing criminal charges too (Colorado Law).

For that reason, it's best to avoid a lapse in your auto insurance coverage. Make sure you time the activation of your new auto insurance policy so that it begins exactly as your old coverage ends.

5. Cancel Your Old Policy

Once you've selected a new provider, you'll need to ensure your old policy is canceled. Here's what you need to do:

  • Contact your current insurance company to notify them that you are canceling your policy.
  • Make sure you discuss the exact end date with your insurer.
  • Ask your carrier for written confirmation of your policy's termination.

The exact cancellation process may differ from one company to the next. So, make sure you follow their termination policy correctly.

6. Notify Your Lender or Leasing Company

This step only applies to those who have a car loan or lease a vehicle. Those entities have a financial stake in your care, so they will want to make sure it's always insured and has the right amount of coverage.

Your new insurer can send proof of insurance to your lender or leasing company. Make sure you ask your insurer to do exactly that.

7. Swap Out Your Insurance Info

Once the coverage switch is official, you only have one final step: swap out your insurance information! Make sure you keep your updated proof of insurance in the vehicle(s) at all times.

Key Facts to Bear in Mind

  • It is possible to switch auto insurers while you have an open claim. However, it is not usually recommended because it may affect your annual premiums.
  • Switching policies usually won't affect your credit score.
  • It's best to not switch providers immediately after a traffic violation, as this will likely increase your insurance rates.
  • In general, you can change insurers as often as you'd like.

Start Gathering Quotes for Car Insurance in Denver, CO

If you're ready to switch your auto policy, you've come to the right place.

The Adler Insurance Group is an award-winning premier Allstate agency based in Denver. We are a small 2nd-generation family company with highly experienced agents who will go the extra mile to meet your needs.

Contact Adler Insurance today to get your accurate quote for car insurance in Denver, CO.