Perhaps you received a letter in the mail offering you cheaper coverage than what you currently have, but you are in the middle of your current policy period. Or maybe you just renewed with your current company and feel you may be stuck with that policy, even if you have found a better rate. Physicians and practice managers often have questions regarding switching their coverage mid-policy period. There are typically several questions and concerns that need to be addressed:
- Can it even be done?
- Are there penalties involved?
- What happens to the money that I paid in advance on my premium?
- Will there be a gap in my coverage?
- Why is this new offer so much cheaper than my current coverage?
- Is this policy the same as my old one?
If you have paid your premiums annually or quarterly and you are not at the end of your policy period, you will receive a refund of your unearned premium from your current insurance company if you decide to switch carriers prior to your renewal date. However, the insurance company can charge you up to 10% of your unearned premium. That amount should be taken into consideration before making a decision regarding switching coverage.
There will not be a gap in coverage as the insurance company you switch coverage to will bind coverage prior to you cancelling with your current carrier. You should make sure that is done to avoid having any gaps in coverage.
Often times, physicians who are happy with their current insurance carrier and/or relationship with their broker, will renew coverage with their current company on an annual basis, usually at the recommendation of their broker, without receiving updated quotes from other carriers. It is crucial that physicians can trust their brokers and insurance companies and have a good relationship with them. However, because the market is so competitive right now, using a broker that will aggressively shop all available companies on your behalf is the only way to ensure that you are receiving not only the best rate, but the best coverage available to you. Considerable amounts of money can be saved by getting quotes from different companies that offer the exact same coverage you currently have. Too often, complacency results in overpaying. Physicians have numerous options that need to be explored and taken advantage of. Shopping should be done by your broker on an annual basis and presented to you prior to your renewal each year. Guarantee you are receiving the best rate. If you have not been presented with a free, no obligation, full updated market-cost analysis, complete our quick quote form or call a Diederich Healthcare professional today at 800-457-7790.To contact the author, call 800-457-7790 and ask for Myles Donnell.