Switching to New Car Insurance Mid—Policy

It's a common misconception that you can't switch to a new car insurance policy before your old car insurance policy expires. Even if you have prepaid your policy for a year, you still have the right to switch to a new car insurance policy whenever you want. Many of us got the impression as youngsters that this wasn't something that could be done unless for some reason the car that was insured is no longer in your name. But those were the actions of our fathers. We now have more options than ever before when it comes to switching to a new car insurance policy.

If you paid for your premium for a full year in advance, not only are you a truly unique creature, but you are also entitled to receive your money back for every single day that you are not insured under the old car insurance policy. It really is that simple. Most insurance companies will cut you a pro rated check as soon as you notify them of your cancellation. Of course, since it is illegal to run around without car insurance you don't want to have to rely on the recovered funds in order to purchase a new car insurance policy. The check has to go through what is known as the "processing out' phase which really just means that the car insurance company wants to verify that they are not overpaying you in the process of returning your money.

The big question is why would you want to change to a new car insurance policy while you have another car insurance policy in full effect? That is a very simple answer. Money. Sometimes you can find a much better deal than you are receiving and the easy and quick answer is to just switch car insurance companies on the spot. Many people are finding that they stick with their car insurance companies an average of only six to ten months because rates fluctuate so often and often dramatically depending on a wide variety of variable factors. If one car insurance company jacks up your premium over an accident that clearly wasn't your fault but another one is willing to accept you as a clean driver, obviously there is money to be saved by switching to a new car insurance policy. Not all car insurance policies work on the same scale, and while there are definite car insurance consequences for moving violations and for accidents, not all car insurance companies are quite so quick to slice the consumer.

Sometimes you are totally unaware that it is in your best interest to go ahead and switch to a new car insurance policy while another car insurance policy is still in effect. Sometimes you are solicited for your business and you find out that you have been overpaying on your insurance rates for years. In cases such as these it doesn't make any sense to continue to pay one policy's higher premiums while another premium would better serve your needs.