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Most people, once they have an auto insurance company,simply just let their current policy renew and renew withoutchecking to see if maybe they can get a better dealsomewhere else. If that describes you, maybe you would lookinto exploring your options if you knew how and painless itreally is. This article will show you just how easy the process is.

Shopping for a new auto insurance company

The easiest and quickest and as a result the most painlessway to shop for auto insurance is to go on the internet.Many companies can give you quotes 24/7 on their websites.You can also get contact information for a particular autoinsurance company on their site and call them up on thetelephone. When considering switching companies, the firstthing to do is to get comparison rate quotes from severalcompanies.

You do want to be very truthful about all your information so that you can get accurate quotes. The company will find out about any accidents, claims or traffic tickets anyway, so don't try to hide anything. Also, when you get comparison rate quotes, make sure you compare the coverage you have with your current auto insurance company to what is available with any new company so that you can make a comparison that makes sense.

How to switch

Once you have found a new auto insurance company andpurchased your new policy you must cancel your old policy.If you don't cancel your old policy the old auto insurancecompany could assume you wished to continue your insurancewith them. They would be expecting to receive premiums fromyou. When they don't receive those premiums they wouldeventually cancel your policy due to unpaid premiums andreport your lack of coverage to the Department of MotorVehicles of your state. This could affect your credit andyour ability to get a new auto insurance policy.

Canceling your old policy is easy.

Usually, all you need to do is to inform your old autoinsurance company in writing, telling them when you wouldlike the policy cancelled. They will then send you a formto sign and return, which in effect will cancel your policy.

One thing to note

Do not cancel your policy from your old auto insurancecompany until the insurance is actually in effect with thenew insurer. This way you avoid any lapse in coverage.However, nowadays there is little chance of that happening.Most states require all drivers to carry a minimum amount ofinsurance and your old auto insurance company will probablyrequire you to show proof of insurance before they willcancel an active policy.

When you switch is very important

The best time to switch to a new auto insurance company iswhen the current policy is about to expire. When youreceive your policy renewal notice from your current autoinsurance company is the best time to switch. This isusually about a month before the current policy is actuallygoing to expire. It is during this period when you canswitch insurers without incurring any fees or penalties.

Also, because it is so close to the end of the policy termyou would avoid trying to figure out the amount of unusedpremium that you are due from your old auto insurancecompany. You also avoid arguing with your insurance agentabout exactly when you cancelled and how much the autoinsurance company owes you.

But yes, you can cancel outside of the 30 day periodIf after taking into account the fee or penalty you may haveto pay you may find that you still would get appreciablesavings. So, while it is best you switch within that 30 dayrenewal period, you can actually cancel at any time.

Are you ready?

That's all there is to it. Just think of all that extramoney that could be coming your way if you follow thesesimple guidelines.