Many people believe that you cannot switch homeowner’s or auto insurance companies mid-way through your coverage period. This is actually not true. You can switch insurance companies at any time. However, there are a few important things to know about switching Massachusetts insurance companies mid-year.
In some cases, you may pre-pay your insurance premium and in other cases you may pay your premium monthly. If you pay monthly, switching is fairly easy. You would simply pick up payments with your new company and stop paying your old one. Depending on when you make the switch, there may be a slight overlap or prorated adjustment.
For annual payments, switching is a lit bit more complicated. You will need to pay the premium on your new Massachusetts insurance policy first. Once you cancel the old policy, your old insurance company will issue a check reimbursing you for any amounts that you overpaid. You will need extra funds to do this since it may take the old insurance company a few weeks to send your refund. Contact your old insurance company beforehand for information on how they calculate refunds and how long it typically takes.
Why You May Want to Switch Companies
Price and service are often the two main reasons for switching Massachusetts insurance companies. Massachusetts is a competitive insurance state, which means that prices vary from one company to another. Companies can also vary in the types of discounts that they offer. Most provide free quotes so that you can compare, but make sure that you are performing an equal comparison. Take a look at the coverage types and amounts in the particular policy. If switching companies saves you significant money, then it’s certainly a good reason to switch sooner rather than later.
Before switching companies, don’t forget to give some thought to the level of service. Some companies charge a bit more but also offer much better service. Price should never be the only factor. Anyone who’s had to file an insurance claim will tell you that it can be more stressful and cumbersome with some companies than others. Compare both price and service together to consider what you are getting for your money!
More on Switching Massachusetts Insurance Companies Mid-year
If you’re thinking of switching companies, then you are probably going to be contacting several companies for quotes. This can be time consuming. You can save time and energy by working wit an Independent Insurance Agent like Gorman Insurance. We work with many major insurance providers and can compare rates, service, and coverages for you. Our goal is to help you make smarter decisions and select a Massachusetts insurance company that is a good balance between value and service. Contact us today for a free quote.