What to Know About Switching Car Insurance After an Accident

Switching car insurance companies isn’t unusual, and it can be a wise, money-saving move. The best or cheapest option for you now might no longer be the one you currently have.

You can change your car insurance provider any time you want, even right after an accident. However, it’s usually recommended that you wait until the end of your current plan before getting a new one.

Let’s take a closer look at what could go into the decision to switch car insurance after an accident.

Yes, you have the right to change your car insurance whenever you want. However, switching providers right after an accident or while you have an open accident claim might not be the best move. If you get insurance right after an accident, the policy won’t cover the accident you just experienced in any way.

Some common reasons people want to change their insurer include a desire for better customer service or a need for a lower, more affordable rate. Once you get in an accident, that’s usually the time you want to rely on your provider, not look for a new one.

If you had no insurance coverage or a lack of collision coverage, and you got in an accident, you can’t get a policy after and then expect it to cover damage from the accident. This is insurance fraud, and, especially if there is police reporting involved, you likely won’t get away with it.

Additionally, adjusters are experienced in assessing damage. They’ll notice that you have a policy very close to your accident date, and this will be investigated. Also, if the other driver in the accident filed a claim with their provider, your adjuster may be able to see that, depending on the claims system used, and will notice a discrepancy in the accident report date.

If you’re trying to avoid a rate increase in car insurance after a crash by switching insurers, think again. It’s true that your premium usually goes up after an accident, but it won’t increase until it’s time to renew your policy. If you file an accident claim in the middle of your insurance term, you can expect to pay the same amount monthly until the end of your policy when you have to renew.

Also, if you try to switch car insurance companies right after an accident, you’ll have to answer questions about your driving history and record from your new company, and you must disclose the accident you just experienced. 

This would affect the rate of your new policy right away, as opposed to when it would impact your old policy (which wouldn’t be until renewal time). Any fraudulent answers you give to your new insurer would be grounds for losing your new policy and much worse.

If you’ve just got no choice but to switch auto insurance providers right after a crash, remember that having car insurance is the law in every state (except New Hampshire). If you’re thinking of canceling your plan in the wake of an accident, make sure you get a new one before your original one ends. Having any sort of lapse in coverage is a red flag to auto insurers in the future, and it’s illegal to drive without car insurance.

You can change insurance companies while you have an open accident claim, but you won’t be able to avoid the accident showing up on your new insurance. Furthermore, you’ll still have to work with your initial insurer to deal with the accident claim. They’ll still pay for damages, and you can’t get the new company to take on the claim that was filed with your old one.

Your coverage and deductible with your old company wouldn’t change while they deal with your claim. Also, you’ll still be held accountable for the accident if you were at fault. So if you get new insurance while having a claim open with another company, nothing on your original policy changes, and you’re now having to deal with two insurers at the same time since you should be getting your new policy before the original one ends. It just seems like a bit of extra work.

It’s important to note that if you’re canceling your old policy before it’s time for renewing or changing your auto insurance after an accident, you might have to pay a cancelation fee. This could be a flat rate or a percentage of the payments you have left. It varies by company, and not every provider makes you do this. 

Before ending your plan, make sure you understand the cancellation process and wait until you have proof of insurance from your new company before terminating your initial policy.

If there’s a high cancelation fee, it might be more cost-effective to wait until the end of your current plan instead of changing your car insurance policy right after an accident.

The best auto insurance after an accident will vary by the person since no two companies or policyholders are exactly alike. Getting car insurance after an accident may not be the most fun task, since you’ll likely see your premiums spike in the wake of the crash. However, you should compare multiple rates to find the best deal.

Shopping around is ultimately always the best way to find auto insurance savings. As you get further from the date of your accident, your rates should go down, and the amount of the decrease may vary by company. Get quotes around policy renewal time to see which carrier has the best rates for your situation. 

Changing carriers after an accident isn’t the best time to hope for savings. Accidents, especially at-fault ones, are a primary indicator that insurers look at when determining rates. Nevertheless, there are still discounts you can qualify for and potential changes you can make to your policy to lower premiums when getting car insurance after an accident. 

Some answers for how to lower your car insurance after an accident include:

Look into safe driving courses. Many states offer safe driving courses that can land you insurance discounts. Discounts and classes vary by state. Some may be open to all, while others may apply only to senior drivers. Nevertheless, they can lower your premiums upon completion. 

Be aware of discounts. With an accident, especially an at-fault one, on your record, it may be difficult to qualify for affordable rates immediately. However, insurers offer a plethora of discounts to help you save, and you might not have to go that far out of your way to qualify for some. 

For example, bundling your auto policy with other insurance products through the same company often yields notable savings. You may also get discounts for insuring multiple cars, paying in full, or going paperless. Over time, you can also qualify for loyalty and claims-free discounts, if available.

Consider reducing your coverage limits. Every state requires a minimum amount of liability coverage. While it’s usually wise to have more than the minimum mandated amount, you may be able to opt for less and still be adequately protected. Lowering your liability limits will get you closer to the cheapest car insurance after an accident. 

Also, you can consider dropping optional coverages to save money. While leased or financed cars must have full coverage, you may be able to opt out of protections like uninsured or underinsured motorist coverage or perks like towing coverage to save money. 

Look into your policy or note the different coverage options when quoting if switching your auto insurance after an accident to see where you may be able to save.

Only if you really have to. Changing providers after an accident to avoid a rate increase isn’t possible. The accident will always show up on your insurance record, whether it’s at the end of your current policy term or immediately when you switch insurers.

A company usually isn’t allowed to change rates in the middle of your plan, so it may be worth it to wait until it’s over to shop around. Your rates shouldn’t increase mid-policy, even with a crash.

Switching auto insurance after an accident to have a new company handle your current accident claim isn’t possible, either. Whatever company you file the claim with will be the one that will reimburse those involved in the accident and cover potential legal fees.

If you do switch insurance companies after a crash, remember to have a new policy in place before you cancel your old one. Also, call your old insurer and inform them you’re canceling; don’t just stop paying.

You don’t want to run the risk of your old policy auto-renewing or jeopardizing your insurance reputation by missing payments.

Every car insurance company has a different way of calculating premiums and handling claims. It’s wise to shop around regularly, although right after a crash might not be the best time. 

If you’re looking for a good way to compare providers and find a plan, Clovered has your back. It just takes minutes to submit some basic information, and you’ll hear back from a licensed agent happy to help you find affordable car insurance after an accident.