Reader question:

Is it possible to change from one CA car insurance company to another without causing too much hassle?

Lane

Good question, Lane.

There are plenty of motives a person can have for going from one CA car insurance company to the next, but the decision should never be made lightly. Whether you’re switching for a perfectly good reason, like a move, or your simply dropping your policy because you can’t afford it or no longer have a vehicle to drive, doing it the wrong way could be expensive, and might also be reported to credit agencies, two things you want to avoid.

Most people think of car insurance as a six month, or in some cases, month by month deal. However, once you have taken out a policy with a CA car insurance company, they assume you are there to stay. Therefore, while the majority think that they could easily cancel their car insurance policy with on CA car insurance company by just letting it go and not paying any more premiums after the end of their current premium term, that often doesn’t work. As a matter of fact, the usual method is that the CA car insurance company will send you a bill for the next round, and if you don’t pay that, they can report it to the credit reporting agencies.

You can bypass this, though. The preferable way to inform a CA car insurance company that you don’t want to do business with them anymore is to submit a statement in writing of what day you intend to be your last having a policy with them. It’s simple, takes a minute and costs less than fifty cents for the stamp and envelope, and it can save you a lot of money.

What about the expensive thing that I said? Well, if you just drop your policy with a CA car insurance company without saying a word, it will look bad to the next company you go to. They might take it as a reason to consider you high risk, as you cannot be trusted to make regular payments (a big part of your insurance score, which has a huge effect on your premium). In turn, you end up paying more for high risk car insurance rates, and risk being denied insurance altogether.

All you have to do not feel these repercussions is ring your CA car insurance company and get them to send you a cancellation form. Make sure that you read the form thoroughly, sign it, and send it back.

Cheers,

Fashun Guadarrama.