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The Top 5 Reasons to Switch Insurance Companies

September 14, 2012

There are a lot of insurance companies out there looking to earn your business. There’s no reason to stay with a company that doesn’t meet your needs or isn’t taking care of you properly. If you aren’t sure whether you need to consider switching, take a look at these top five reasons for moving on, and see if any of them apply to your situation.

1. You’re Being Overcharged

Plenty of people keep right on paying too much for a policy simply because they haven’t taken the time to find out if there’s a better deal out there. It’s not unusual for drivers to save hundreds of dollars each year by changing to a new insurance company. Of course, if you are so pleased with your current company that you are willing to pay more for their service, then by all means stay. But most people aren’t particularly happy with or attached to their insurance company. They just don’t realize there might be a better deal. Get some car insurance quotes, make sure you’re doing an apples to apples comparison, and find out how much you could be saving.

2. Poor Claims Service

When a claim is filed is usually when a driver sees the best – or the worst – of their insurance company’s service. Claims are the area where most insurance companies come under fire, and how they handle a claim says a lot about how much they value your business. Claims that are handled smoothly, quickly, and with the least possible difficulty for the driver are a great experience. Unfortunately, many drivers have an experience that is very different. If you aren’t happy with the claims service you receive, it’s time to look for better service elsewhere.

3. Regular Rate Increases

Every insurance company raises rates across the board on occasion. Depending on where you live and which insurance company you are with, you may see a reduction in your rates over time. Each insurance company increases and reduces their rates differently – typically based on their claims experience. It may be time to compare car insurance quotes from other companies.

4. Lack of Customer Service.

You may be required to carry insurance by law, but you are still the insurance company’s customer and you should be treated as such. Customer service this is rude, unwilling to answer questions or help you, or simply not available is not acceptable in an insurance company. If you have a bad customer service experience on a regular basis or can’t get a hold of someone when you need assistance, you should look to switch insurance companies. Customer service is a mainstay of any company that has competition. Look for an insurance company whose employees show they are glad to have your business and don’t want to lose it.

5. You’re Moving

You may love your insurance company, but not every company provides service in all areas. You need an insurance company that knows the needs of drivers in your new home, so you may need to switch when you move. This is generally the case when you move to a new province, but even within the same province it may be true. Another insurance company may also offer better rates in your new area, so it’s a good time to shop around, compare insurance quotes, and make the switch.

It may not always be obvious that it’s time to switch insurance companies. Sometimes you can’t tell until you shop around that there are better options out there for you. Doing rate comparisons regularly, usually when your policy is up for renewal, can keep you on top of rate changes and ensure you don’t get overcharged or miss out on a great deal.

Shopping around doesn’t mean that you have to switch; in some cases it’s best to stay where you are. But getting the comparisons makes it easier to feel confident that it’s the right place for you to be.

  • Carsten Blade

    I live in town but have a farm and the yard is rented out. How do I go about getting a competative insurance quote for the farm. No body is interested unless I include my house and auto insurance as well. I am with Intact now and they raised the rates 10% last year and are asking for 15% again this year. I have been claims free for ever but Intact does not care.

  • Nick – InsuranceHotline.com

    Hello Carsten,

    Your best bet would be to contact an insurance broker. You can check the Insurance Brokers of Canada website for contact information. http://www.ibac.ca/.

  • Carolle

    Been with actual insurance 8-9 yrs and they keep putting their rates up every year. Fed Up!
    Decided to shop around for decent prices for my Hyundai Accent 3-door 1997. Bought second
    hand in early Sept. 2003 and was only lady-driven but she was retiring and did not need a car
    any longer as her husband already had one. Nice silver Japanese Hyundai, lots of room, cheap
    on gas, well-maintained at all times. The actual mileage is 88,450 kms this date, Nov. 11, 2012.
    At my age, I do not go out often specially from December to early April. Only had the car for
    9 yrs. only.
    in winter months (only drive it 8 months/yr.) only when need be.

  • Nick – InsuranceHotline.com

    Hello Carolle,

    To get a car insurance quote for your Hyundai, please visit: http://www.insurancehotline.com/car-insurance-quotes.

    Thank you.

  • Jeff

    With Gore right now, they refuse to let me pay my monthly installment by MasterCard, is this common? Are there companies that do aaccept what is now the most common payment method in the world?

  • Nick – InsuranceHotline.com

    Hello Jeff,

    There are likely many insurance companies that accept credit cards for monthly premiums. Do your research and shop around to find a suitable company!