Changing Auto Insurance Companies Overview

In the United States, there are over 2,500 car insurance providers, and because of that, there's a lot of competition among them for your business. Many of them, the big nationwide insurers that spend millions of dollars in advertising, are likely familiar to you — State Farm, Allstate, Prudential, Geico and lots more. But if you need to buy car insurance or plan to change auto insurance coverage that you've already got, you don't have to "settle" for the big guys.

The Internet brings to your fingertips access to almost all of the 2,500 insurance companies, and from one of them you will no doubt find affordable auto insurance. That's not an oxymoron, by the way. Competition has resulted in premiums and prices dropping, while overall customer satisfaction has improved. It's simply because the insurance companies know that it's now too easy for a customer to switch carriers, if they're not happy or find a better deal elsewhere.

Even if you think you've got great car insurance rates already, it doesn't hurt to shop around for a better deal. You can change your insurance as often as you want, when you find a better deal or if your personal circumstances have changed that will change your coverage needs. One thing to bear in mind, if you are changing auto insurance companies, is never allow an old policy to lapse without ensuring that your new coverage has been activated. In plain language, the insurance company will consider you a (irresponsible) high risk individual, and your premiums will increase, and worse than that, it's reported to the credit reporting bureaus which can result in you having higher interest rates on credit cards and loans.

Whichever insurance company you choose, be sure that you haven't traded off a great price with a risky company. It won't be worth a few dollar savings for poor customer service or claim denial. You can verify your potential insurer's rating through services such as A.M. Best or Standard and Poor's which evaluate and rank each insurance company based on their financial stability. Good auto insurance ratings aren't a guarantee, but they go a long way in helping you determine who will do the best job for you. If you want to know where your insurance company stands in the customer service satisfaction arena, check with JD Powers and Associates.