The Drawbacks of Changing Insurance Providers

It Is Possible To Lose Loyalty Benefits.

Loyalty is the key advantage of keeping with the same insurance provider for several years. The majority of insurers give discounts for continued coverage. Long-term clients may receive savings of up to 15% off their monthly or annual premiums from certain insurers.

Furthermore, if you are a loyal client with a history of on-time payments and few claims, it may be less likely that your rates will increase if you do submit a claim. If you are a customer with a reduced risk profile and longer tenure, this may be a consideration before you decide to switch. If you transfer insurers and submit a claim shortly after switching, your premiums may increase, or your policy may not be renewed since you lack the "history" to verify your lower-risk profile.

However, for some of our clients, these loyalty perks may not be worthwhile. Some clients may find more affordable pricing by comparing our panel of insurance firms, each of which offers a variety of discounts.

There May Be A Cancellation Fee To Pay.

If you cancel a policy prior to its expiration or renewal date, the insurer may assess a cancellation fee. They could charge you a fixed rate for one month's premium or a percentage of your remaining insurance coverage. Before you terminate your insurance policy, you should confirm that this is not the case with your insurance provider.

You Must Ensure That The New Business Is In Good Standing.

Do not make a decision based just on price. You want your insurance provider to have the financial resources, customer service, and credibility to handle your claims if and when the time comes (that's the entire purpose of insurance!). Not only can a certified insurance agent help you assess how much coverage you should consider carrying, but they can also provide first-hand knowledge of the insurance companies they represent.