It is optimal to make sure you are continuously covered through insurance to avoid a lapse. You may have a tougher experience trying to a fair cost for new coverage if you have let your former policy lapse. Current insurance is calculated in to how insurers come up with your premium, along with credit history, occupation, gender, and age.
When there is a gap in your insurance coverage, the prospective insurer will want to know the reason for the gap. If it was a simple case of forgetting to pay a bill, the insurer will wish to know if this is a recurring problem or a one-time occurrence. How often did the lapse of coverage occur and for how long each time. Longer periods of time could imply that you are in the habit of driving without insurance, not a good sign in the insurers opinion.
You probably see now that planning ahead is the best way to go when you want to change your insurance provider.
Timing is also important in your quest to obtain a lower premium. When starting a new job or moving, you might want to pick a new insurance provider before you make this major life change. Also keep in mind that if you're about to turn 25 years old, your rates will then drop. Therefore, it's a good idea to find a new policy at right around the time of that particular birthday.
You would not be established in the new community, which would give you a higher rate. If a new job were more high-risk than the old one, this could result in an increase in your premium. One of the best reasons to maintain a spotless driving record is the break on insurance rates that you will receive.
The one thing you can continuously use to your advantage is maintaining a clean driving record. If such is the case, you are age twenty-five or above, and you are not about to go through any major changes in your living or work situation then it may be an ideal time to compare other insurance rates to see what kind of discount you are offered-especially if your current insurance rates have stayed the same or increased.
If you do find a better deal with a new insurance company, inform your current company. You might not have to change providers at all. Many companies will offer you the same price that you would have received with the new provider, just to keep you as a customer. If you put in some time and research and know the subject, you can cut your expenses and come out on top as a cost-conscious consumer.
Author Resource:
Susan Reynolds is the content coordinator for a leading South African Insurance Provider who specialises in Car Insurance Options .
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