| Most people will switch insurance companies if they | | | | - There maybe an accident or ticket that becomes 3 |
| find a much better rate or if they are unsatisfied | | | | years old which could lower your rate. Usually an auto |
| with the customer service they have received. | | | | insurance company will not lower your rate until the |
| Unfortunately these people often don't realize that | | | | policy renews which could be months and hundreds |
| you can change companies at any time during the | | | | of dollars in premium. |
| policy period. There are valid reasons to change | | | | - No more need to deal with the unprofessional |
| insurance companies early and I will explain the most | | | | insurance agent that made you want to switch in the |
| common reasons why you should switch sooner | | | | first place. |
| rather than later. | | | | Reasons to stick with your current policy at least until |
| Every insurance policy has a renewal date whether | | | | renewal |
| you are talking about home, auto, or health insurance. | | | | - Some policies such as motorcycle policies may have |
| This renewal date allows the insurance company to | | | | a short rate that is charged if you cancel prior to the |
| adjust your rate depending on a host of factors. | | | | end of your policy term. This is usually the case with |
| Most people assume their insurance premium will go | | | | recreational vehicles that are annual policies but you |
| down and unfortunately in the economy it is not | | | | likely only use them a few months out of the year. |
| uncommon for your premium to increase by 10-30%. | | | | - Depending on the type of policy you may be |
| The insurance company can only adjust your | | | | required to pay a down payment which is sometime |
| premium on renewal and not during the policy period | | | | twice the monthly cost just to start a new policy. |
| which is why you only see that increase every 6 or | | | | This could be tough for those that only have enough |
| 12 months. | | | | money for one month's payment. |
| As I mentioned before there are valid reasons to | | | | Remember you can cancel your auto or home |
| switch insurance companies prior to your renewal | | | | insurance at any time but health insurance can require |
| date and a few reasons not to. Here are a few | | | | a life changing event. Ask your current insurance |
| examples of each: | | | | company if there are any fees or extra charges that |
| Reasons to switch early | | | | you will pay for cancelling early. In most cases people |
| - If you can save money with another company you | | | | won't switch insurance companies unless the savings |
| can start saving immediately. This could save you | | | | are 20% or higher. Determine why you want to |
| hundreds of dollars over just a few months. | | | | switch companies and then start shopping. |