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There are multiple reasons why drivers choose to switch car insurance companies. Whether it’s for lower rates, adding more coverage, or for a recent car purchase, switching insurance providers can help you maintain a favorable combination of coverage and price. If you’re hoping to switch car insurance providers but haven’t done so in the past, the process may seem difficult—thankfully, it isn’t. However, before switching providers, there are a few key steps to ensure you don’t have a lapse in coverage.
Key Takeaways:
Consider switching auto insurance providers after a major life change, such as getting married or purchasing a new car, to help you take advantage of potential savings.
Comparing car insurance quotes from multiple providers annually can help you find (and keep) the best rates available.
Avoid any gaps in coverage when switching insurance providers. Always ensure your new policy is 100% active before canceling your current policy.
When to Change Car Insurance Companies
Changing auto insurance companies is possible anytime, even if you paid for a full year of coverage. Although you don’t have to wait for renewal to cancel a policy, remember that some companies may charge an early cancellation fee before you receive any refunds for previously paid premiums. Here are just a few life events that may signal it’s time for a switch:
You recently moved to a new city or state: Insurance providers use local data to determine your premium, so you may be able to save if you move to a smaller city. If you move to a new state, you’ll likely need to update your insurance to meet any state-required liability limits.
Adding a new driver or vehicle to your policy: If you’re adding a teen driver to a family policy or listing an additional vehicle, consider shopping around for car insurance quotes. Providers rely on multiple factors when setting rates, so it’s possible to find a carrier that offers lower rates for new drivers or vehicles.
Your premium has increased: If your premium has increased during renewal, it may be a good time to research quotes to find a better deal.
How to Switch Car Insurance Companies
1. Check for Potential Cancellation Penalties
Before you switch car insurance providers, it’s important to be aware of any potential penalties you may face for canceling, especially if you’re canceling during the middle of a coverage period. Although you can cancel anytime, some companies may charge a small fee or penalty for terminating a policy early.
To avoid surprises, contact your current provider and ask about the cancellation process. If you will be charged a fee, compare that to any potential savings you may have with a new insurance provider. If the savings exceed the fees, it may be worth it to switch mid-policy. However, if the fees outweigh the savings, you may want to wait until your next renewal to make the change.
2. Compare Car Insurance Quotes from Multiple Providers
Once you’ve decided that switching car insurance companies is a wise decision, your next step is to compare auto insurance quotes from multiple providers. This step is crucial because it will ensure you get the best rate possible. Even if you decide not to switch, we recommend comparing quotes periodically to avoid overpaying for coverage. Insurance agents can often run quotes from many providers at once, saving you the work of contacting each company separately.
It’s essential that you compare quotes using the same coverage types and limits with each provider so that you get an even comparison. Thankfully, getting a quote online is a simple process, but you will need the following information:
Your vehicle’s year, make, and model.
Vehicle identification number (VIN).
Driver license numbers for all drivers that will be listed on the new policy.
Garage address where the vehicle will be parked.
If you live in a state that can use your credit score to set your rate, you may also need to provide your social security number.
When speaking to a potential insurance agency or company, don’t forget to ask about any discounts you may be eligible for.
3. Do Your Research
If you find a better rate through a different insurance provider, research the company before finalizing the switch. Although a highly important factor, car insurance is more than just your premium. A good insurance company should have a solid track record of good reviews for how they handle their claims. You don’t want to agree to a new policy only to find out later you don’t get the same benefits your previous insurer provided, such as an online claim feature or 24/7 customer service.
4. Avoid Canceling Too Soon
One of the biggest mistakes customers make when they switch car insurance providers is canceling their current policy too soon. Even if it’s just for a day, having a lapse in coverage could cause major financial and legal challenges if you cause an accident while uninsured. If caught driving without insurance, you could face hefty fines or even have your license suspended. Additionally, having a lapse in coverage could cause higher rates with a new insurer.
Be sure to tell your new insurance provider that you are switching from a different provider. Your new insurer should be able to help you avoid any gaps in coverage by having your new coverage start well before your old policy’s expiration.
5. Contact Your Current Insurance Provider to Confirm the Cancellation
Once you have a new provider and have confirmed your new coverage start date is before your current policy expires, contact your current insurer. In most cases, it is your responsibility to contact your insurer if you wish to cancel. Do not assume your policy will end just because you stop paying your insurance premium.
For a smooth process, you should have all your official documentation and proof of your new insurance policy in hand before you cancel your current coverage. Each company will handle cancellations differently, so the process may vary depending on your provider. Some companies may require you to sign an authorization form or provide a cancellation notice in writing.
Frequently Asked Questions Regarding Switching Car Insurance Providers
Can I Switch Car Insurance Companies if I am Financing or Leasing a Car?
Yes, it is possible to switch car insurance companies even if you are financing or leasing a car. However, you must let your new insurance provider know who your lender or lessor is.
If you do not let your new insurance provider know about your switch, your lender may assume you have a lapse in coverage when they receive the cancellation notice from your previous insurer. Most lenders require collision and comprehensive coverage as a term of your loan or lease, so keeping them aware of any changes will protect your contract.
How Often Should I Compare Auto Insurance Quotes?
Getting an auto insurance quote from a provider has no negative impacts. A quote is simply an estimate and does not bind you to a purchase or affect your current coverage. We recommend comparing auto insurance quotes each time your policy is up for renewal to ensure you have the best rate possible. However, staying with the same company also has its benefits, such as loyalty and multi-policy discounts. Before you switch car insurance providers, evenly compare all aspects of your policy, not just your rate.
Can I Switch Car Insurance Providers After an Accident?
Yes, you can switch providers even after an accident, but it won’t make the accident/claim disappear. If you cancel a policy while you have an open claim, your new provider may increase rates once your claim closes. Additionally, some providers may have underwriting guidelines that prevent them from accepting new customers with open claims.
Still Have Questions? AIS Can Help
At AIS, we have over 55 years of experience helping our customers navigate the car insurance marketplace to help them find coverage they can rely on. Our insurance specialists will assist you with comparing quotes from our network of trusted insurance providers and will answer any questions you may have regarding the change. To speak with a specialist, call (888) 772-4247 or start a free quote online.
The information in this article is obtained from various sources and is offered for educational purposes. Furthermore, it should not replace manuals or instructions provided by the manufacturer or the advice of a qualified professional. No warranty or appropriateness for a specific purpose is expressed or implied.
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The Affordable Care Act (ACA) has faced numerous legal challenges, but has been upheld three times by the Supreme Court. Over the years, the headlines surrounding the possibility of the ACA (aka Obamacare) being overturned have often focused on people with pre-existing conditions who buy their own health insurance. (This is certainly a valid concern, as those individuals would undoubtedly be worse off without the ACA.)
But the impact of the ACA goes well beyond securing access to healthcare for people with pre-existing conditions. Who are these Americans, whose lives are better off, thanks to the ACA? See if you can find yourself – or your loved ones – in this list:
More than 14 million Americans (91% of all Marketplace/exchange enrollees) who are receiving premium subsidies in the exchanges that make their coverage affordable. The average full-price premium is $605/month in 2023, but the average subsidy amount ($527/month) covers the majority of the average premium.
More than 7.5 million people who are receiving cost-sharing reductions that make medical care more affordable and accessible.
People who are (or want to be) self-employed and wouldn’t have been able to qualify for and/or afford a privately purchased health insurance plan without the ACA’s guaranteed-issue provisions and premium subsidies.
People with pre-existing conditions who gain access to an employer-sponsored plan after being uninsured for 63+ days. HIPAA guaranteed that they could enroll in the employer-sponsored plan, but there were waiting periods for pre-existing conditions. The ACA eliminated those waiting periods.
People who lose access to an employer’s plan and no longer have to rely on COBRA (or mini-COBRA/state continuation) for health coverage.
People who gain access to an employer’s plan and have a waiting period of no more than 90 days before their coverage takes effect. Pre-ACA, employers could determine their own waiting periods, which were sometimes longer than three months.
Full-time (30+ hours/week) workers at large businesses who are offered real health insurance instead of “mini-med” plans, thanks to the employer mandate. (Employers can choose not to comply, but they face a penalty in that case.)
People with serious conditions often exhausted their coverage under pre-ACA plan because of annual or lifetime benefits caps.
People with serious medical conditions who would otherwise have exhausted their coverage in the private market, including employer-sponsored plans. Pre-ACA, annual and lifetime benefit caps were the norm. And it could be shockingly easy to hit those maximums if you had a premature baby or a serious medical condition.
Coal miners with black lung disease, and their survivors. The ACA made benefits under the Black Lung Benefits Act of 1972 available to more people.
Medicare beneficiaries who use Part D prescription coverage and who would have ended up in the donut hole. before. (The ACA closed the donut hole as of 2020.)
Medicare beneficiaries who receive free preventive care.
American taxpayers and Medicare beneficiaries who benefit from ACA cost controls that have extended the solvency of the Medicare Hospital Insurance trust fund and improved Medicare’s long-term financial outlook.
Seniors who are able to remain in their homes as they age, thanks to the ACA’s expansion of Medicaid funding for in-home long-term care services and supports.
Nursing home residents – and people with loved ones living in nursing homes – who benefit from federal funding for background checks on employees who interact with patients.
The 12 million low-income Americans who are elderly and/or disabled, covered simultaneously by both Medicare and Medicaid, and who benefit from the improvements the ACA made for the dual-eligible population.
College students who are no longer offered skimpy health plans.
Women (and their partners) who have access to contraception at no cost – including birth control methods such as IUDs, implants, and tubal ligations that are highly effective but would have prohibitively high up-front costs if they weren’t covered by insurance.
Pregnant women who have access to free routine prenatal care.
Expectant parents – male and female – who can enroll in a health plan in the individual market. (Pre-ACA, expectant parents’ applications were rejected in nearly every state.)
People who buy their own health insurance and would like to have a child. Pre-ACA, individual health insurance rarely covered maternity care.
Breastfeeding mothers who have access to breast pumps and breastfeeding counseling as part of their insurance benefits. The ACA also guarantees that breastfeeding mothers who work for large employers have access to adequate breaks and a private, non-bathroom area for pumping milk.
Anyone who is better off in a world where people in need of mental health care can access it – because their health insurance covers it and they aren’t rejected altogether when they apply for a new health plan.
People with substance abuse disorders who can obtain treatment that would be unaffordable without health insurance coverage.
The 21 million people who have gained access to Medicaid thanks to the ACA’s expansion of coverage to low-income adults.
Low-income families and individuals who no longer have to meet asset tests in order to qualify for Medicaid or CHIP, with eligibility now based on the ACA’s modified adjusted gross income instead (some populations, including the elderly and disabled, are still subject to asset tests for Medicaid eligibility).
People in some rural areas of the country where hospitals have been able to remain open thanks to Medicaid expansion.
Young adults who are able to remain on their parents’ health insurance as they work to start their careers.
Young adults who were in foster care until age 18, and who are allowed to continue their Medicaid coverage until age 26, regardless of income.
Early retirees who can enroll in self-purchased health insurance for the pre-Medicare years, without worrying about pre-existing conditions.
ACA’s marketplace plans must cover a list of vaccinations for children from birth to age 18.
Children who have access to free vaccines and well-child care.
Adults who have access to a wide range of preventive health services at no cost.
Families whose health plan covers their kids’ dental care.
People in New York and Minnesota who earn a little too much for Medicaid but are eligible for coverage under Basic Health Programs (Oregon plans to debut a Basic Health Program in mid-2024).
People who find themselves needing to appeal their health plan’s decision on a prior authorization request or claim.
Medicare Advantage enrollees whose health plan is required to spend at least 85% of revenue on members’ medical claims and quality improvements.
Individuals and employers whose insurers are required to spend at least 80% or 85% of premiums on members’ medical claims and quality improvements.
People age 65 and older, including recent immigrants, who are able to enroll in ACA-compliant health plans if they’re not eligible for premium-free Medicare (pre-ACA, individual market insurers generally would not enroll people over age 64).
Women, who no longer pay more for health insurance than men.
Older people (including those age 65+ who aren’t eligible for premium-free Medicare), whose premiums are no more than three times as much as the premiums for a 21-year-old.
People who buy their own health insurance and no longer have to worry that the policy could get rescinded because they forgot to mention something on the application. (This was usually due to an omission in the medical history section, and those questions are no longer asked – thanks, also, to the ACA.)
Everyone who benefits from the more robust premium review processes that states have as a result of the ACA.
Everyone who benefits from the ACA’s risk adjustment program, which levels the playing field and helps to prevent plan designs that would be unappealing to individuals and groups with high-cost medical conditions.
People with individual and small-group coverage that includes all of the essential health benefits.
People who pay full price for individual health insurance in Alaska, Colorado, Delaware, Georgia, Idaho, Maine, Maryland, Minnesota, Montana, New Hampshire, New Jersey, North Dakota, Oregon, Pennsylvania, Rhode Island, Virginia, and Wisconsin, who are paying lower premiums thanks to reinsurance programs that were implemented under Section 1332 of the ACA.
Native Americans and Alaska Natives, who can enroll year-round in plans sold through the exchanges, and who are eligible for plans with zero cost-sharing if their income doesn’t exceed 300% of the poverty level. (That’s $90,000 for a family of four enrolling in 2024 coverage.)
Native Americans and Alaska Natives who receive care via Indian Health Services – as the ACA permanently reauthorized the Indian Health Care Improvement Act.
People who are protected from discrimination in healthcare based on race, national origin, sex, age, or disability, thanks to Section 1557 of the ACA. (The details of how these protections work are determined by HHS, so there have been some changes over time. HHS initiallyissued rulemaking in 2016, but it wasrolled back in 2020. However, HHS proposed new rules in 2022 that would largely revert to the stronger anti-discrimination protections that were implemented in 2016.)
People who are able to make more informed food choices thanks to nutritional and calorie information on restaurant menus. This stems from Section 4205 of the ACA, and was implemented in 2018.
People who shop for coverage in the health insurance exchange and find the new star rating system for health plans to be helpful during the plan selection process.
People who could benefit from new biosimilar drugs becoming available. Section 7002 of the ACA created the pathway under which biosimilar drugs are approved by the FDA.
Louise Norris is an individual health insurance broker who has been writing about health insurance and health reform since 2006. She has written dozens of opinions and educational pieces about the Affordable Care Act for healthinsurance.org. Her state health exchange updates are regularly cited by media who cover health reform and by other health insurance experts.
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Whether you are a bar or restaurant owner or in charge of organizing a special event, the presence of alcohol can open a multitude of potential risks. Imagine a scenario where an accident occurs, like an intoxicated customer falling and injuring themselves, or a heated altercation causes a fight and hurts another individual. You may find yourself liable and responsible for hefty legal expenses in these situations. Surprisingly, one critical element often overlooked is obtaining liquor liability insurance. This article illustrates why liquor liability insurance is an absolute must for business owners and event hosts. From understanding what liquor liability insurance entails to identifying who should have it, we’ll provide you with the knowledge and insights to protect yourself and ensure peace of mind.
What Are Dram Shops and Dram Shop Laws?
A dram shop is an establishment like a bar, tavern, or pub that focuses on selling, serving, or making alcohol. The term dram shop refers back to a time when these establishments sold alcohol by the dram, a small serving typically less than a shot. Although the term is no longer in use, dram shop laws still apply to those establishments and events serving alcohol. Dram shop laws are to prevent bars, stores, and other businesses from selling or serving alcohol to minors and overly intoxicated people.
Today, a majority of states in the U.S. have dram shop laws to make business owners or hosts legally responsible for damages caused by an intoxicated person. There are only a handful of states — Delaware, Kansas, Louisiana, Maryland, Nevada, South Dakota, and Virginia — that do not have dram shop laws. Securing liquor liability insurance is essential for businesses operating in states with dram shop laws.
What Is Liquor Liability Insurance?
Liquor liability insurance, also known as dram shop insurance, helps protect businesses that serve, sell, distribute, manufacture, or supply alcoholic beverages. This type of business insurance can assist in covering legal expenses arising from bodily injury or property damage caused by an intoxicated customer after being served alcohol. You can purchase this insurance as a standalone policy or add it as supplemental coverage as an endorsement to your commercial general liability insurance policy. Liquor liability insurance can help cover claims of:
Third-Party Bodily Injuries: If an intoxicated customer at your establishment or event causes harm to another individual, liquor liability insurance can cover the injured party’s medical expenses and legal costs if the injured party decides to file a lawsuit against you. This coverage also extends to incidents involving drunk driving accidents.
Third-Party Property Damage: If an intoxicated patron causes damage to another person’s property while on your premises, this insurance helps cover the expenses by either repair or replacement.
Legal Fees and Medical Bills: If a lawsuit is filed from an incident involving a patron who was overserved, liquor liability insurance can help cover legal expenses, including attorney fees, settlements, or judgments up to the policy’s coverage limits.
These expenses could be overwhelming without liquor liability insurance and potentially jeopardize your business. Keep in mind, that liquor liability does not replace a general liability policy and vice versa. While liquor liability insurance addresses alcohol-related claims, a general liability policy does not protect in such cases. Therefore, having both policies in place is important to safeguard your business from various risks.
Who Needs Liquor Liability Coverage?
A lot can go wrong when it comes to alcohol-related incidents. From drunk driving incidents, assaults, trips, and falls to alcohol poisoning, if any patrons hurt themselves or someone else, you may be liable for their actions. Some types of businesses or events that may need this coverage include:
Your state’s dram shop law may legally require you to obtain liquor liability insurance in order to secure a liquor license. Even if your state does not mandate insurance, there are still compelling reasons to consider coverage.
Can I Get One-Day Liquor Liability Coverage For an Event?
Yes, event liquor liability insurance is a short-term policy designed to cover your business during events where alcohol will be served to guests or attendees. This coverage plays a crucial role in protecting your business in various ways, including covering defense costs in the event of a lawsuit, property damage, and bodily injury resulting from alcohol consumption at your event. Depending on the policy, it can be purchased for several days, and its cost is determined based on factors such as number of attendees, the type of event, and the selected coverage limits. This coverage is suitable for a wide range of events, including:
Weddings
Birthday celebrations
Corporate events
Festivals/Fairs
Concerts
Sporting Events
Host Liquor Liability Coverage vs. Liquor Liability Coverage
You’ll likely find host liquor liability insurance in a commercial general liability insurance policy. Host liquor liability insurance is coverage intended for the business or entity holding the event. If your business does not sell or serve alcohol but allows people to drink it on your premises, such as at special events, host liquor insurance from your general liability policy can help cover claims your business causes, such as bodily injury or property damage. Note that this policy does not include liquor liability insurance. You’ll need liquor liability insurance coverage if your business sells, serves, or distributes alcohol.
Getting An Insurance Quote Is Easy With AIS
Our dedicated commercial insurance team can help you compare insurance options, limits, and deductibles. We make it a priority to truly understand your business. Speak with one of our Commercial Insurance Specialists today at (855) 919-4247 for a swift and seamless free quote. Our specialists are ready to provide you with a quick liquor liability insurance quote to ensure that your business and events are well-protected with the necessary coverage.
The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may differ from those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.
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