Switching Cars on Insurance: 5 Surprising Facts You Need to Know

You're not alone if you've ever considered switching cars on your insurance policy. In fact, according to a recent study by the National Association of Insurance Commissioners (NAIC), over 40% of drivers have switched insurance companies in the past five years.

There are many reasons why you might want to switch cars on your insurance policy. Maybe you've bought a new car, or maybe you're just looking for a better rate. Whatever the reason, it's important to know what you're getting into before you make the switch.

Here are 5 surprising facts you need to know about switching cars on insurance:

1. Your rates could go up. This is especially true if you're switching to a car that's more expensive or has a higher risk profile. For example, if you're switching from a sedan to an SUV, you can expect your rates to increase.
2. You may lose coverage. When you switch cars, you're essentially starting a new insurance policy. This means that you may lose some of the coverage you had on your old policy. For example, you may lose coverage for things like roadside assistance or rental car reimbursement.
3. You could have to pay a cancellation fee. If you're canceling your old insurance policy before the end of the term, you may have to pay a cancellation fee. This fee can vary depending on your insurance company, but it's typically around $50-$100.
4. You may need to get a new inspection. If you're switching to a significantly different car, your insurance company may require you to get a new inspection. This inspection will help them to determine your new risk profile and set your new rates.
5. You could save money. In some cases, switching cars on your insurance policy could actually save you money. This is especially true if you're switching to a car that's less expensive or has a lower risk profile. For example, if you're switching from an SUV to a sedan, you can expect your rates to decrease.

Here are some additional things to keep in mind when switching cars on your insurance policy:

• Shop around. Don't just go with the first insurance company you find. Take the time to shop around and compare quotes from different companies. This will help you to find the best possible rate.
• Read the fine print. Before you switch insurance companies, be sure to read the fine print of your new policy. This will help you to understand what is and is not covered.
• Talk to your agent. If you have any questions about switching cars on your insurance policy, be sure to talk to your agent. They can help you to understand your options and make the best decision for your needs.

Conclusion

Switching cars on your insurance policy can be a big decision. By following these tips, you can help to make the process as smooth and painless as possible.