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How Hard Is It To Switch My Insurance?

By April 23, 2021April 11th, 2024No Comments

For homeowner’s policies, you are usually paying insurance through your escrow account. The mortgage companies pay the insurance per year, not per month. So, if they have already paid the entire year and you switch insurance carriers, it can really confuse a lot of different parties involved. However; it can be done.

After getting a new homeowner’s policy, you may receive a refund. Check with the mortgage company to make sure your escrow account is not short on funds. If it is, put the refunded money back into escrow. If it is not short on funds, then that money is yours to keep or to pay the new policy. Beware though: if you don’t do it correctly or a different agent that you do not work with is advising you of this, it can cause some real problems.

For an auto policy, it is best to switch at renewal. If you don’t, it could cause a lapse in coverage and trouble with the DMV. It can also cause what is called a short rate fee, which means they penalize you for cancelling outside of the policy effective dates/term. You have to make sure the new policy starts the same time the old one is cancelled. If you have questions, we can help. Visit or call Therese at 919-931-5432.