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How to Make the Best Choice During Insurance Renewal?

8/20/2012, 2:24 a.m.

When it comes to Insurance renewal many insurance policyholders make the decision to stay with the same insurance company for the long run. While this does offer benefits such as discounts for doing so, you might also consider the savings you might experience by choosing another company.

You might keep in mind cancelling your current coverage at renewal time, as it is the time to do so to avoid fees and penalties. You should make sure to have another company and new coverage before contacting your former carrier.

Making sure you do end your coverage formally may require you to prove you do have a new policy. By taking care of securing a new policy before you contact your old company, you save a great of money. You can also help to save time explaining and proving the time frame between companies.

Most people are not aware that by not going for insurance renewal in time, their current insurance provider is likely to withdraw the premium automatically from your bank account and renew the policy, without you knowing a thing about it. And this will happen even if you have bought a policy from another insurer. For insurance companies, this is a basic precautionary measure that will ensure that you fulfil your legal obligations and never drive your car uninsured.

As soon as your car insurance renewal date draws near, you will probably get an email or a letter from your current insurance company. This will remind you of the renewal date and is also likely to encourage you to buy a different policy from the same company - thus automatically generating a new offer as well as issuing new policy documents and insurance certificate. If you do not wish to continue with the same insurance provider, you need to contact them and give written instructions for the same.

Your current company may work to try and keep you as a customer. If you find cheaper coverage at another company, be sure to tell your present agent. The company you have now could offer you a deal that is better than any you have found to keep you. Keep in mind the competition in the insurance business is severe.

Renewal time is the best time to update your policy. This is also a good time to check your policy for accuracy as well. Little details like your address and vehicle identification number can make a huge difference in your premiums if they are one number off. Always make sure you keep your coverage up to date instead of allowing it to simply renew and roll over.