Switch auto insurance companies mid-term, search for best rates
Buying car insurance is like any other important item – it’s a good idea to shop around. There are some things you need to know when looking for the right font for you, especially if you need to make a change.
What you need to know about changing your car insurance policy
We’ve told you how you can try to save money on your car insurance by letting companies track your driving with an app. By following your driving habits, you could benefit from lower fares and this could mean changing companies.
Question: Are there any penalties for changing car insurance policies mid-term?
Answer: No. The Texas Department of Insurance explains that you have the right to cancel your policy at any time. You should receive a refund of the remaining premium.
Reimbursement will be paid to you* unless you used a finance company to pay for your insurance. In this case, the refund will be paid to this company and the amount will be deducted from what you owe on your loan. Keep in mind that if an insurance company wishes to cancel your policy, they must send notice at least 10 days prior to cancellation. Your specific policy may provide for even longer notice.
Did you know that insurance companies check your claims history?
Most insurance companies use the Comprehensive Loss Underwriting Exchange (CLUE) to find out your claims history. This will include the date, type and loss of claims. A company may charge you more or refuse to sell you a policy based on the information in your CLUE report. You can get a free copy of your report each year. Call LexisNexis at 866-312-8076.
Find car insurance discounts
When shopping for insurance, you should check often for potential discounts you could get on your car insurance. For example, if you are now working remotely, you might qualify for a “low mileage” discount. Other common reductions include driver training or defensive driving, getting good grades for students, and a good driving record.
You should also be allowed to choose your repair shop
There are other rights you may not be aware of when it comes to car insurance in Texas. The TDI website states that when it comes to using your car insurance after an accident, you have the right to choose the repair and replacement workshopts for your vehicle. An insurance company cannot specify the make, type, type, age, vendor, supplier, or condition of the parts or products used to repair your automobile. Investigator Joel Eisenbaum looked into the auto parts shortage last year and it’s still the case for many dealerships. You may want to ask specific questions about auto parts and how the repair shop plans to repair your vehicle.
Need help with an insurance question?
If you have a question or complaint about your auto insurance, call the Texas Department of Insurance Helpline at 800-252-3439. The helpline is open from 8 a.m. to 5 p.m. Central Time, Monday through Friday.
The state’s Help Insure website helps you compare auto insurance company rates. The Office of Public Insurance Council also has a calculator you can try.
We get more questions from you and we love it! If you have a question for Amy and the team, email us at [email protected] and we’ll work to find an answer for you.
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