Changing insurance companies?

Question:

I'm switching auto/home insurance companies as it will save me $50.00 per month with the new company. I cancelled for August 1st which is when my account is normally debited. However, they mentioned something about pro-rating, etc. and that I would probably still have to pay something for August. I'm upset I'll have to pay 2 insurance companies in August when I'm trying to save money! She also said they may withdraw the full amount and reimburse me any I should get back. Isn't transition supposed to go smoother than this?

This can be tricky.. if you are cancelling your policy early, you are ending a contract beofre the contract expired, kinda like your cell phone contract. There may be, or may not be cancellation fees. Some of the penalty come in the for of "short rating" basically your being charged a percentage based on the amount of time you were covered. It's a formula that your company uses, and most times it ends up being close to $50.00.

As far as stoping the draft, with my company the rule is 10 days, but we can stop it up untill like 4 days before the draft. So it may stop, and it may not. Depends how "on top of things" your agent is, and if he/she is truly 'on your side'.

Home things work out for ya. Oh..ps... this is why so many people wait untill it is time for renwal before switching, though it can be done smoothly before that. @ 50.00 a month, even if you get charge 100.00 in fees, after 2 months you have broken even. Email me if you have more questions!

If your renewal date is 08/27 and you started the new coverage on that day and ended the old coverage on that day there should be no complications and you should owe nothing to your old company. Tell your old company you want to "cancel coverage flat effective 08/27" (as long as you that is when you started the new coverage- confirm this with your new agent). Also tell the old company you replaced coverage as of 08/27. The old company will not want to duplicate coverage or have stacking of limits (2 policies in place for the same thing). Your new agent should be willing to guide you through this. If they are not and just tell you to stop payment on the old company...you may want to reconsider changing? sounds like they just want their commission not your business!

Everything InsuranceMAN says it right. Remember the company that you are with doesn't want you to go and as much as I wish it weren't true they don't want to help you leave and take your business elsewhere. That's why these transitions from one company to another don't usually go very smoothly. You need to make sure that you really are saving enough money for it to be worth the hassle.$50 is okay, but I would suggest switching in order to save $100+. Also, look for an independent agent in your area that represents more than one company. That way you can always call them and have them shop your policy for something cheaper with another company - even if it is midterm - and they aren't going to hassle you about it. It's kind of the beauty of local independent agents.

depends on the state. Texas- you can switch any time with no penalty. Anything you have paid ahead on will be refunded to you within a month.

Changing insurance companies?

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