Switching between insurance companies for a better service or other reasons can be done easily; the process just requires a series of steps which the customer will take to effect this change.
Identifying the new insurance company
This stage is where the client makes up their mind on the company they want to move over to, this step will require an intensive study and insurance comparison, once a good company has been sited the client now initiates a move to contact the company. New insurance companies have advertised great deals concerning liability insurance which is an area of insurance that has high deductibles because of the nature of the insurance.
Establish the new insurance coverage before ending the old deal
It will be important for the client to completely finish the processing of the new insurance policy before approaching the old company to end the relationship. This is because the old company will need to be shown a proof that the client has already established another insurance policy before they finalize the process of releasing the client from the old one. It is also important that that the new insurance policy is in effect before ending the old one so as to avoid any insurance gap which might be a risky situation for the client.
Formal notification in writing
With a proof of a new insurance policy, the client can now write formally to the old company indicating their need to end the running insurance, the process is usually in accordance with the laws prescribed by the state auto insurance will be initiated. The client will fill out the cancellation forms and furnish the old insurance company with any information they will need to facilitate the process of cancelling the old insurance.
It will be better for the client to end their old insurance at the expiry dates; this will be a good move in order to avoid any penalties from the insurance companies which will arise if the cancellation is initiated before the expiry. The insurance company will allocate the current premium payments calculated up to the date which the cancellation has been established. At this point all the funds that are due the client will be realized and a refund will be made to the client. This way the client has made a switch to a better insurance company while getting some funds back from the old company.