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Are You Changing Insurance Carriers? Here's Some Smart Shopping Advice
Shopping for insurance is a task most of us tend to avoid. But sometimes it's necessary. Be sure to do your homework to get the coverage you need at a price you can afford.
Step 1: Assess Your Needs
Understand your insurance needs, whether you are searching for home, auto, life or other insurance. The National Association of Insurance Commissioners at www.naic.org and the Insurance Information Institute at www.iii.org are great resources for people at any life-stage or economic level.* The sites offer valuable information about various kinds of insurance and suggest questions to ask yourself and your provider.
Once you know your insurance needs, determine the amount of coverage you need to fit your situation.
The following may help you get lower premiums:
- Having a high credit score.
- Having more than one policy with the same provider.
- Requesting higher deductibles to lower premium costs.
- Learning which discounts are available.
To make sure that your agent can identify applicable discounts, give him or her all of the relevant information about your situation, your family, upcoming life transitions, etc.
In addition to cost, consider factors such as service, dependability and the insurance company's financial condition. You can contact your state insurance department for information on the financial security of the company and other insurance-related questions.
Step 2: Make the Switch
Once you've done your homework and made your choices, inform your current insurance provider. Find out the expiration dates of your current policies and tell providers a week or two prior, and ask for a cancellation request. Be sure to fill in your signature, the date you wish to cancel and your policy number, otherwise the company will be unable to process it.
Make the new policy effective the date the old insurance expires. Ask the new insurer about options for paying premiums. Finally, if you have loans on insured property or vehicles, send your lender the necessary information.
* Websites provided for information only. No endorsement is implied.