You think it is time to switch car insurance providers, but there are certain things you should know before you do that. Here is the list of what to know before switching car insurance providers.

• Know what the new policy includes
  You might make the mistake of focusing on only one aspect of the new insurance policy and assume that it is the best deal. Often, it isn’t. You want to make sure that you compare and know exactly what the new policy exactly includes. For example, many people tend to focus on a low quote that entices them to the new insurance company to realize later that the coverage is much less than the previous one. Know your new policy inside out.
• Cancel old policy
  Canceling your old policy is what to know before switching car insurance providers. You want to cancel the old policy before the new one starts officially. Experts recommend that you get a written confirmation letter for the same to be on the safe side. If you don’t cancel your old policy, your old insurance provider can continue billing you, and when you don’t pay, your credit score will suffer as a result.
• Coverage gap
  You should ensure that there is no coverage gap. You want your new policy to start as soon as the old insurance policy ends. Because no matter how careful you think you are, accidents can happen, and if they happen after the old policy ends and before the new policy starts, you would be uninsured, which means you need to pay for the damages out of pocket. A gap in your coverage can also cost you more down the line.
• Know about penalties
  One of the important things to know before switching car insurance providers is whether you have any penalties before your coverage ends. While many won’t charge you for canceling your policy, there are others like Esurance that will. All car insurance providers give you the right to cancel your policy when you wish, but you need to straight away ask about whether a fee will be charged for it.
• Determine if you are eligible for a refund
  This is for people who have paid their policy upfront. If you have done that, you can apply for a refund because you haven’t used up the coverage. For example, if you paid for six months and switched after the third month, then your insurer should pay the remaining 3 months’ coverage. He might deduct the cancellation fee, but you should still receive a refund. When you cancel your old policy, make sure you ask for a refund if it applicable to your case.
• If you have leased
  What to know before switching car insurance providers when you have leased a car? Your lessor can ask you for a particular amount with regards to the insurance coverage. And when you are switching car insurance providers, you want to ensure your lessor is aware of that. You can ask the new insurance provider to send the insurance proof to you and your lessor so that he knows about the changes.
• Is it the right time?
  Every time is not the right time, so you need to know when that is. For example, if you have an accident recently, this is not the right time to make the switch. If you have a long time before you are required to renew your policy, it is best not to switch. However, certain situations like major life changes, such as getting married or moving to another state are times when you start thinking about switching car insurance providers.