Having insurance for your car is not only mandatory in Canada, it can also help save you money if you are involved in an accident.
Many people like to stick with their initial insurer and can benefit from loyalty discounts. However, switching auto insurance companies can potentially lead to savings too. But how do you know whether you should consider changing your insurance company or your policy?
Your first step is to speak with your insurance broker but doing a little research beforehand will make this conversation much more productive, so keep reading to learn more about what you need to know!
1. When you buy a new car or make changes to your existing one
If you are thinking about purchasing a new car, most insurance companies allow you to simply move your current policy over to the new vehicle. However, you will likely see a change in the price of your insurance as new cars are usually more expensive to insure.
Insurance costs may also increase for an older vehicle if you make any big changes such as:
- Changing the way you use your car, for example, shifting from personal to business use.
- Increasing the distance you drive on an annual basis, for example, to more than 10,000 km.
- Making modifications to your car, for example:
- Changes to your engine
2. When you move to a new address
Where you live is one of the most important factors that can affect the price of your car insurance. If you decide to move homes, one of the things to add to your moving to-do list is telling your insurer about your change in address. They will advise if there are any changes to the price of your insurance policy.
Some risk factors are applied geographically so where you live may affect your premium. A change in price will most likely occur in your policy if you are moving out of province. This is because Canadian provinces differ significantly in how they deal with insurance.
It is extremely important for you to update your address with your insurer when moving. If you have a different addresses on your car insurance when you try to make a claim, there can be some serious problems, for example, your claim may not be processed, and it could even be considered to be insurance fraud.
3. When you change your personal details
If you end up changing any of your personal details, such as your name, you will need to update your car insurance policy. Many couples who get married and take one another’s surname don’t even realize that this is a necessary step.
After updating your policy, you also need to update your drivers licence. The information on your license must match the information on your car insurance policy in order to make a claim and provide the protection you expect.
You may also need to change or update your insurance policy if any of the following apply:
- You’ve recently changed jobs
- You’ve legally changed your gender
- The details of your banking information have changed
Call your BrokerLink Insurance Broker today!
The first step to updating or switching car insurance companies is talking to your insurance broker. An insurance broker will take the time to get to know you and understand your specific circumstances so that they can help you find the right coverage for your car.
If you want to learn more, let BrokerLink be your resource for all things car insurance. From start to finish, our brokers handle the legwork to make sure you walk away satisfied. Get a quote online, give us a call or visit any of our locations across the country!
When Should You Change or Update Your Car Insurance Policy FAQs
Is it possible to change my car insurance right away?
If you are the named insurer on your policy, you can make adjustments to your policy whenever you want. You don’t have to wait until your policy is up for renewal! If you go through any big life changes like a move or getting a job that’s much closer to home, call your broker as soon as possible to update!
I changed my name and my gender, do I need to change my auto insurance?
Yes, any changes to personal information, such as your legal name and gender, have to be changed on both your auto insurance and your driver’s licence. If your personal information on your insurance policy is incorrect, there may be problems if you ever need to make a claim. Having incorrect information on your policy can also even be considered fraud in some circumstances. Please speak with a broker today to change this information!