7 Points you must know about Transfer of Insurance
Are you looking for a new policy? Wondering what the process of transferring an insurance policy entails? It’s important to know all the details before you make any decisions. This piece will discuss 7 points that you must know about insurance transfer.
1. Not all Insurance Companies Allow Policy Transfers
This is the first and most important step that you need to take. Not all insurance companies allow their policies to be transferred, so it is important to check beforehand.
If your current insurer does not allow transfers or is unhappy with your current coverage, plenty of other insurers out there allow transfers. Doing a quick online search will give you a list of potential new providers.
However, before making any decisions, be sure to compare rates between different providers to make sure you are getting the best deal possible.
2. Not everyone is Eligible for Insurance Transfer
Not everyone is eligible to transfer their insurance policy. Typically, you must meet a certain criteria to be eligible for insurance policy transfer. First, you must have been covered under the policy for at least six months before the transfer date. Secondly, your new insurance company must offer coverage equivalent to or better than your current policy.
Just remember to contact your new insurer and provide them with proof of your existing coverage (e.g., an insurance card) so that they can begin processing your policy transfer.
These are just some of the requirements that you must meet before completing a policy transfer, but there may be others depending on your specific situation, so it is best if you check with an insurance agent beforehand.
3. The Transfer Process can Take up to Two Months
Once you have contacted your new insurance company and confirmed that you are eligible for a policy transfer, the actual process can take anywhere from one to two months.
This is because your new insurer will need to contact your current insurer to get all relevant information about your existing policy. They will also need to ensure no gaps in coverage between policies before issuing you a new one.
So, if you are planning on transferring your insurance policy, be sure to give yourself plenty of time so that there are no surprises down the road.
4. You May Need to Change Your Billing and Mailing Address
The new insurer will send a new card with updated information when you transfer an insurance policy. It is up to you whether or not you want them sent to your current home or if you would like them to be forwarded on until they reach their expiration date. Should this occur before the end of your existing policy’s term, there should be no gap in coverage between policies, so it boils down to personal preference here. However, keep these things in mind when deciding where you would prefer to send future correspondence from your insurer.
It is also important that you update your billing information with your new insurer as soon as possible. This way, you can avoid any potential issues down the road.
5. It is Important to Review Your New Policy
Even though a previous insurer has already covered you, it is always best to make sure that the terms and conditions of your existing policy are still applicable before finalizing any changes. You should also take this opportunity to ensure that all information about yourself has been updated with both insurers to avoid payment issues down the road.
In addition, if anything were missing from or incorrect on your transfer application, then now would be a good time for those problems to be resolved, so they do not cause a problem later on when filing a claim after something unforeseen occurs.
6. You Will Lose any Unused Value from Your Old Policy
Once you have transferred an insurance policy, all benefits not used by the end of its term with your previous insurer automatically expire and cannot be applied to a claim afterward. In other words, if there was anything valuable in terms of coverage or money left on the table before transferring policies, then you must make sure that any claims are filed within a reasonable amount of time after making this change to avoid losing out.
7. Your New Insurer may Require You to do an Insurance Check-up
Your new insurer may also ask you to undergo a health or property inspection as part of the transfer process. This is just one way for them to understand what kind of risk they are taking on by providing you with coverage and can help avoid any surprises down the road if you need to make a claim.
If you are not comfortable with this idea, then be sure to voice your concerns when speaking with customer service about transferring policies.
In some cases, your new insurer may also want you to provide updated documentation (e.g., driver’s license) to complete the transfer. Failure to do so may result in your policy being canceled, so be sure to read all correspondence from your new insurer carefully.
Transferring your insurance policy is a significant decision that requires knowledge and planning. Keep in mind the above points when considering whether or not to transfer your policy. If you have any questions or want more information, please call us today.