Is it time to change your insurance? Maybe you shopped around and found that Colorado Farm Bureau Insurance offers the lowest rate on home or auto insurance. Perhaps you want to bundle your insurance products for a discount, or you experienced poor customer service with your former insurance company. Switching home, auto, or commercial insurance is easy. Changing life insurance may be more complex, but it can be done.
How to Change Your Car Insurance
Have you added a teen or spouse as a second driver on your auto insurance policy? Are you about to buy a new car? Are you planning to relocate? Is your car insurance policy set to renew in a few weeks? Did your insurance premium rise this year, due to an at-fault accident, or maybe for no reason at all? For whatever reason, you may be ready for a new insurance provider.
Switch at Any Time
You can switch to Farm Bureau Insurance at any time, even if you still have an open claim with another provider. Your former insurer will refund the unused portion of your premium. Most auto insurance companies don’t charge a cancellation fee. The savings are often worth the switch, even if they do.
If you already have home insurance with Farm Bureau Insurance, ask your agent about bundling your auto policy with your home policy for a discount.
Don’t Drive Uninsured
Make sure that your new Farm Bureau Insurance policy is in effect before canceling your former coverage. Even a day’s gap in insurance will lead to a $40 reinstatement penalty when registering your car.
If you are pulled over while driving uninsured, you may face a $500 fine and a suspended license. Driving without insurance, even one time, puts you at risk for major out-of-pocket expenses in the event of an at-fault accident.
Necessary Paperwork
Your agent can email your new policy documents immediately. Once you have proof of your new insurance, cancel your policy with your former provider. Some insurance companies require a written notice of cancellation, while others will accept an e-signature. Don’t forget to ask about refunds for prorated coverage.
Change any automatic payment information with your bank, and ask your old provider for written notice of the policy’s cancellation. Ask your new provider for proof of insurance for your lessor—if you are leasing your car—and proof of insurance for your lender if you are still making loan payments. Switch out your old insurance card for your new one.
For Open Claims
If you have an open claim, stay in touch with your former provider until the claim is closed, even if you have already switched to Farm Bureau Insurance.
How To Change Your Home Insurance
Contact your current company, and let them know that you plan to cancel your home policy. They may ask for a request in writing. Keep a copy of this request for your own records.
Avoid a Lapse
Avoid any lapse in coverage. Make sure your new coverage starts the same day your old policy ends.
Cancellation Fees
Many insurance companies charge a small fee if you cancel a home policy mid-term. The savings from your new company or from bundling your home and auto insurance may offset this cost. Your former insurer will refund any pre-paid or unused premiums.
For Payments Through Escrow
Notify your mortgage provider, if your home insurance is paid through an escrow account. Your mortgage broker needs a copy of your new declarations page and written notice that you canceled your old policy. This ensures payments from your escrow account go to the correct provider.
If you already have auto insurance with Farm Bureau Insurance, ask your agent about bundling your home policy with your auto policy for a discount.
How To Change Your Commercial Insurance
You can switch your business insurance to one of Farm Bureau Insurance’s commercial products at any time, but the easiest time is at your policy’s renewal date. Schedule your new policy to take effect on the day your old policy would have renewed.
Let your current company know that you want to cancel your policy in writing. You may also need to notify your bank, if you hold business loans. As with all insurance, avoid a lapse in coverage.
How To Change Your Life Insurance
Improved health or industry-wide price drops are two reasons that you may consider switching life insurance providers.
Colorado’s “Free Look” Period
If you took out a life insurance policy with another provider 7-30 days ago, but would rather have a policy with Farm Bureau Insurance, you can cancel your policy for full reimbursement. This “free look” period differs based on your provider. Colorado law mandates a 15-day free look period for an annuity policy.
Term vs. Whole Life Cancellations
You can cancel a term life insurance policy and take out a new one with a different provider. In most cases, you will not receive reimbursements for premiums you have already paid. You can cash out a whole life insurance policy, although the payout will be taxable.
1035 Exchange
In some cases, you may be able to transfer a life insurance policy from one company to another. This is called a 1035 exchange (named after Section 1035 of the IRS code), and it only works with similar products. Life to life, annuity to annuity, or long-term care to long-term care policies can be exchanged, but you cannot exchange one type of policy for another.
You must complete 1035 exchange correctly, or you will end up paying unnecessary taxes. Speak with an agent rather than tackling this on your own.
Make the Switch
If you’re ready to switch your auto, home, or life insurance policies to Farm Bureau Insurance, contact a local agent to help you through the process.