Can you switch car insurance companies when you have an open claim?
Explore the step-by-step process and essential considerations when switching car insurance companies while having an open claim. Discover the potential impact on your claim, policy continuity, cancellation procedures, and key factors to consider. Make an informed decision and navigate the switch smoothly with our expert advice and practical tips. Don't let an open claim hinder your ability to find the best insurance option for your needs.
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Jimmy McMillan
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Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent life insurance brokerage. His company specializes in life insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast...
Licensed Insurance Agent
UPDATED: Dec 11, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Dec 11, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Welcome to our comprehensive guide on switching car insurance companies when you have an open claim. If you’re wondering whether it’s possible to switch insurance providers while dealing with an ongoing claim, you’ve come to the right place. In this article, we’ll address this common concern and provide you with valuable insights.
We’ll discuss the factors to consider, the impact on your claim, and the steps involved in making a smooth transition. We understand that finding the best insurance coverage is important to you, even when you have an open claim.
To ensure you make an informed decision, we encourage you to enter your ZIP code and compare rates from the top insurance providers. Let’s explore your options and navigate the switch with confidence.
What happens when drivers switch insurance companies with open claims?
Switching insurance companies won’t affect whether or not your claim gets accepted by your current company. Your insurer will base its decision on factors like fault, your coverages, and other details.
However, when getting new car insurance, let your new company know about your open claim. Not telling an insurance company about previous claims can be considered insurance fraud, invalidating your car insurance and resulting in you getting dropped by your new insurance company.
Once your claim gets settled with your old insurance company, you don’t need to worry about communicating with your old insurance company about your claim unless you wish to contest the claim outcome.
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Why Drivers Switch Insurance Companies With Open Claims
There are multiple reasons why a driver may switch companies while dealing with an open claim. For example, drivers often get insurance quotes online to see if another company offers cheaper rates with an open claim and then switch to the cheaper company.
Some of the most common reasons for switching insurance include:
- Dissatisfaction with the claims process. If a customer has a poor claim filing experience and believes it is taking too long, they may want to switch to a better company.
- Found a company with cheaper rates. If an open claim raises rates upon approval, such as for an at-fault accident, some drivers may look for a cheaper company while their claim gets processed.
- Moving to an area their current insurer doesn’t service. Suppose a driver moves outside an insurance company’s service area and can’t wait until their claim is processed to find a new insurance company. In that case, they may switch before claim finalization.
These are some common reasons drivers may switch insurance companies during an open claim, though it can be more of a hassle than waiting until the claim gets handled to switch insurance companies.
It’s important to note that you can’t switch insurance companies because you want the new insurance company to handle your current claim. You can’t switch claims between insurance companies, and trying to file with both insurance companies counts as fraud.
Will an open claim affect insurance rates when switching?
Yes, an open claim can affect your new insurance rates when switching car insurance, as claims are one of the factors that insurance companies use to calculate insurance rates. However, if your claim is for an accident that wasn’t your fault, it likely won’t affect your insurance rates.
However, if your open claim is for damages from an at-fault accident, expect it to be a factor when your new insurance company calculates your rates. Since you’re considered a riskier driver, at-fault accidents on your record will impact your rates.
How do you avoid an insurance lapse when switching?
Regardless of whether or not you have an open claim, it’s vital to avoid a coverage lapse when you change auto insurance companies. Knowing how to switch car insurance without coverage lapses is important. Any lapses can raise your rates at your new insurer since driving without insurance is illegal.
Check your cancellation date to ensure it doesn’t take effect before your new policy starts. Your current company may even ask for your new insurer’s information before you can cancel your policy to ensure you don’t lapse in coverage.
Read more: How to Cancel Car Insurance
The Final Word on Switching Insurance Companies With an Open Claim
You can switch your insurance company with an open claim, but you must be honest and inform the company of your open claim. You also need to arrange your cancellation and start dates, so you don’t end up with an illegal lapse in insurance coverage.
If you’re dissatisfied with your insurance company and how it handle claims, shopping around and comparing rates and reviews can help you find a better one.
Use our free quote comparison tool to shop and compare insurance rates from companies in your area. You can also look through ratings from the Better Business Bureau or J.D. Power’s insurance studies.
Frequently Asked Questions
Can I transfer my open claim to my new insurance company?
No, your new insurance company can’t handle your old claim at your old insurance company. Only the insurance company that insured you at the time of the accident is responsible for the claim.
Can you change your insurance deductible after an accident?
You can’t change your insurance deductible after an accident if you’re trying to pay less on the claim. However, you can change your deductible at your next policy renewal.
Can I change car insurance during a claim?
Yes, you can change auto insurance companies with an open claim. However, you must inform your new insurance company about the claim during your car insurance change.
Will switching car insurance companies affect my open claim?
Switching car insurance companies should not affect the status of your open claim. The current insurance company is responsible for handling the claim until it is resolved, regardless of whether you switch companies or not.
Will I have to pay any penalties if I switch car insurance companies during an open claim?
It is possible that you may have to pay a penalty for cancelling your current policy early, depending on the terms of your policy. However, this penalty should not be related to the open claim itself.
How do I switch car insurance companies during an open claim?
To switch car insurance companies, you will need to cancel your current policy and purchase a new one. You should first contact your new insurer to ensure that you are able to purchase a policy and that it will go into effect before you cancel your current policy. It is important to make sure that there is no gap in coverage between your old and new policies.
Compare The Best Insurance Quotes In The Country
Compare quotes from the top insurance companies and save!
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Jimmy McMillan
Licensed Insurance Agent
Jimmy McMillan is an entrepreneur and the founder of HeartLifeInsurance.com, an independent life insurance brokerage. His company specializes in life insurance for people with heart problems. He knows personally how difficult it is to secure health and life insurance after a heart attack. Jimmy is a licensed insurance agent from coast to coast who has been featured on ValientCEO and the podcast...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.