4 Warning Risks of Changing Vehicle Insurance Companies - Ratinah

Warning Risks of Changing Vehicle Insurance Companies - We've all been bombarded with ads, emails, commercials, and billboards telling us how much we can save on our auto insurance by switching to another company. This is a competitive industry. 

4 Warning Risks of Changing Vehicle Insurance Companies - Ratinah

Just because another company offers better rates doesn't mean you should rush to call and cancel your insurance and switch. There are a few things you need to make sure before doing it.

Here are some things to consider before you switch your car insurance to another company.

If you've worked with one company for years and they offer credit that waives your first crash, you might want to stay or see if another company can match it. Sometimes this is referred to as a good driver discount or a longevity discount or accident forgiveness. The company rewards your loyalty by ignoring your first accident.

These discounts can be very significant. Since most accidents can increase your rates by 40% over 3 years, the potential savings could be several hundred dollars over that 3 year period. But when you switch companies, you lose these credits you've accumulated. If you had an accident with the new company, how much would you regret not getting the accident pardon by seeing your rates increased by 40%?

Another thing to note is to make sure that the company you're switching from isn't just offering a promotional rate for the first 6 months to get your business and then upping you 6 months later once they get you on their books. Since auto insurance is a lucrative industry, companies may offer low ball rates to get you to switch and then after they make you raise rates on renewal. If a new company's level of offering seems too gooey to be true, do more research. Check out insurance forums or search Google for "XYZ Insurance + Reviews."

Watch out for hidden fees. This is one that may surprise you. Some companies charge you to make monthly payments - usually $3-$5 per month. For a year that earns $36-$60. That one fee can reduce your potential savings, so make sure you include that in the rates you compare. Make sure you actually save money when switching.

Two other things to keep in mind when shopping for auto insurance are the new company's website and hours of operation. Make sure their working hours match yours. If they're only open from 8-5 and you work 8-5, when can you call them if you have a question or need to make a claim? If you do all of your business online, you want to make sure that the company you're looking for has a capable website that can help you 24 hours a day.

You can save money by shopping for your car insurance. Make sure to keep the things I've mentioned in mind in mind to make sure the deal you're looking at is a really good one.

The Importance of Observing Car Insurance

For those of you who want to sell your car that is still on credit, you certainly need to pay attention to this insurance issue. In addition to changing the name of the vehicle ownership, you also need to take care of changing the name of the vehicle insurance.

Insurance companies have various policies related to their service products, including when you intend to transfer them to someone else. Not only for your sake, but also will be needed by your car buyers in the future.

Do not let the buyer feel aggrieved due to disturbances that occur in this insurance service, just because you did not take care of it and explain it from the start. Well, if you want to change insurance, pay attention to this first.

1. Prepare and Complete the Documents

Don't forget to immediately prepare the documents needed for this buying and selling process. As an official owner, you are certainly required to have adequate complementary documents.

There are several documents that you need to prepare properly, including: Proof of Motorized Vehicle Ownership (BPKB) if the car has been paid off, an invoice that will show who the first owner of the car is, Vehicle Registration Certificate (STNK), insurance policies, and others.

To make the sales process easier, also prepare a sale and purchase letter that you will use in this process, including a Rp 6 thousand stamp that will strengthen the letter.

2. Check Your Car Insurance Service

Before deciding to change car insurance, you also need to prepare detailed information related to the vehicle insurance services that you have used so far. This is important, to make it easier for buyers to make claims and other matters related to the insurance.

Pay attention to the type of insurance you use and the form of protection you get properly. Explain this to the buyer, so that the person concerned understands well the details of the car insurance.

3. Check the Condition of Your Car

Checking the car before deciding to move vehicle insurance is also very important to note. Make sure that you will switch to another car insurance according to the needs of your vehicle.

Checking the condition of the vehicle is also necessary when later you plan to sell the car. This will make it easier for you to find potential buyers and make them interested because your car is still in good condition.

4. Report to the Insurance Company

When going to change car insurance, tell the vehicle insurance that has been owned. So that you will be free from various problems related to the insurance policy that is charged. Because the insurance company can find out your status in the ownership of car insurance that has been owned.

Manage it well for the convenience of all parties

Before switching to car insurance, make sure you fulfill the above aspects properly. So you will not be harmed in the future. In addition, it will also make it easier for you if you decide to sell the vehicle someday.

Take good care of all things related to this insurance from the start, so that all parties feel comfortable and not be bothered by this in the future.

That's 4 Warning Risks of Changing Vehicle Insurance Companies - Ratinah


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