Auto insurance is required for car owners in Pennsylvania, but drivers have many options when it comes to choosing the right coverage and provider. If you think you could get better coverage, you might wonder how to switch auto insurance providers. The good news is that changing car insurance companies is not too complicated. By working with an independent agency like Freedom Insurance Group, you can switch very easily.
What Does it Mean to Switch Auto Insurance Providers?
Drivers in Pennsylvania are required to carry auto insurance with at least a minimum amount of coverage. These minimums are:
-
Injury liability of $15,000 per person and $30,000 per accident
-
Property liability of $5,000
As long as you have these minimums in your coverage, you can obtain your auto insurance policy from any insurance carrier that offers insurance in Pennsylvania. Insurance carriers vary widely in how they offer auto insurance plans. Some providers work directly with car owners, offering all of their services online or through a toll-free number. Others work with agencies that only represent their insurance policies. Many providers, however, work with independent insurance agencies that represent their brand along with many others. Freedom Insurance Group is an independent agency, which means we represent multiple carriers.
When car owners find that their current policy does not meet their insurance needs, they begin to wonder what’s involved in changing car insurance companies. If they are working directly with a provider or with an agency that only represents one carrier, switching can be slightly more difficult.
How to Switch Car Insurance Without a Penalty
With an independent agency, switching insurance companies starts with a simple phone call or email. Our agents will ask a few questions to find out if the reason for switching has to do with coverage, price, or both. Then we get to work comparing the plans that fit our client’s current needs. We will get back to the client to present the available options and recommendations, which sometimes means suggesting that they stay with their current policy. Once the client decides if they want to switch to a new carrier, we handle the change.
There is never a penalty to switch insurance carriers during your policy’s renewal period. Insurance policies need to be renewed every year, which makes this a very convenient time to shop for better rates. That being said, there are reasons for switching to a new policy in the middle of your current term. The most common reason to want to switch is for lower premiums. Other reasons include getting a new car, adding an additional driver, or having a life event that changes driving and coverage needs.
With most insurance carriers, cancellation fees only apply if you switch providers during the first year of your policy. There are a few providers who charge a cancellation fee even after that first renewal. The fee could be a flat fee or a percentage of the remaining premium.
The only way to completely avoid a cancellation fee is by changing car insurance companies during the renewal period. However, the fee might be an acceptable inconvenience for switching auto insurance if the overall savings will be much higher with a new policy.
Freedom Insurance Group agents are available to our clients all year long, not just at policy renewal time. If we see outstanding rates that provide the same or better coverage for a client, we reach out to review the value of changing car insurance companies. When our clients call us to say that they heard about a lower rate, we will compare the coverage to determine if the better rates apply to a comparable policy. We will always work with our clients to make sure they have the coverage they want at the best available rates.
How to Switch Auto Insurance Providers in Montgomery and Bucks County
Whether you are a current client of Freedom Insurance Group, or you are looking for more information about changing car insurance companies, we make the whole process easy for you. Because we have access to multiple insurance providers, our team can do the research to find the right coverage for your needs.
When car owners do their own car insurance research, they often get caught in the trap of comparing policies and rates that don’t provide the same coverage. Our experienced team is focused on consistency, which means we review every available policy with the desired coverage. This takes the pressure off our clients to make sure they are getting the best rates for the same or better coverage.
If switching auto insurance is the recommended plan, our clients give us the go ahead, and we take care of canceling the old auto insurance policy while setting up the new one. We will notify the previous provider and make sure that there is no lapse in coverage to worry about. The driver will have continuous coverage through the switch. If there is a premium refund due, the previous insurance company will issue that check directly to the policy owner.
Frequently Asked Questions for Switching Auto Insurance
Will switching auto insurance affect my credit?
Changing auto insurance policies will not hurt your credit score. We do what’s called a “soft” check on your credit report that will not be recorded in your official report. Your credit may affect the rates that you qualify for when switching auto insurance policies.
Can I switch auto insurance if I have a claim open?
You can switch auto insurance policies while you have an open claim. The existing claim will continue to be handled by the insurance policy under which it was filed.
Can I switch auto insurance if I’m financing my car?
You can change auto insurance providers while you still have an auto loan. You can also change car insurance during a lease, but it’s important to make sure your new coverage contains the higher coverage limits that your lease agreement requires.
Work With a Trusted Auto Insurance Agency in Pennsylvania
When you have questions about how to switch auto insurance providers, it’s reassuring to know that you can rely on your insurance agent to answer all your questions. At Freedom Insurance Group, our team does what is best for our clients, which means taking a close look at your policy and looking for ways to save money while keeping the coverage you want.
We are happy to speak with our clients during the middle of an insurance term if switching auto insurance carriers is the right call. If you have any questions about a rate that you see advertised, always give us a call first. We will look at the exact coverage associated with the rate and let you know if making the switch will reduce your premiums. For a review of your current policy, or to request a free quote, please reach out to our team. All of our agents are experienced insurance professionals who look forward to meeting you and discussing your auto insurance needs.
