Switching Insurance? You Have To Cancel The Old Policy
· by Matt Fox · posted April 30, 2008
· filed under ATVs, Boats, Other Toys, Auto, Business Insurance, Homeowner, Personal Insurance, Teenage Drivers category.
I think most people are afraid to switch their insurance because they’re afraid to tell the old agent “goodbye.” Leaving relationships is difficult. Nobody wants to be the bad guy. You also don’t know if the other agent is going to try and “sell you” on reasons to stay. Then you’ll have to say “goodbye” to the new guy.
I often think most stay because of “The devil you know may be better than the devil you don’t know” attitude. It’s kind of like election time. You always hear how nobody likes any candidate but they’re voting for the person they dislike the least, the lesser of the two evils.
Well, when you finally do decide to switch insurance carriers, you must remember to cancel your old policies especially if you switch at anytime other than your renewal. If not, you’ll continue to receive billing notices and the previous insurer will think you still want coverage. Generally they’ll continue to provide coverage for about another month before they cancel you. And, if you ignore their bills and don’t pay for their coverage you can end up in collections. Not a good thing.
If you switch at your policy renewal it’s a bit different. Most policies will continue to provide coverage only if you continue to make your payments at renewal. So, if you don’t pay, they’ll flat cancel the policy effective the renewal date.
However, your best choice is to always notify the previous insurance company and give them the exact date you want it cancelled. In our office we do it for you to make the transition easy. Most agencies let you take care of this on your own and don’t walk you through the entire process.
I heard a quote once from someone I think applies. “The will to survive is not the strongest will in humans. It’s the will to do what’s familiar.” (If you know where it came from, let me know) Maybe that’s why so many people don’t actually look around. It’s familiar and easy to just keep paying those same payments and assuming all is well.
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