When Can You Switch Auto Insurance Providers?

When Can You Switch Auto Insurance Providers?

There are many reasons you may wish to switch your auto insurance provider from unsatisfying service to moving and various other factors. In general, you should be able to cancel your policy at any time. If you purchase a car insurance policy, you are free to cancel that policy at any point you wish to so long as you notify your insurer. 

However, it is important to know when to switch insurers or whether you should at all. 

Don’t Switch Directly After an Accident 

Many drivers instinctively want to switch insurance providers after a car accident, as they may see a dramatic increase in their auto insurance rates. However, you may actually run the risk of paying higher premiums by switching directly after an accident. Since your driving record carries over no matter where you are insured, an accident will still affect your rates. The insurance provider that you are already with may also be willing to work with you to save money in other areas. 

Can You Switch Auto Insurance with an Open Claim? 

Contrary to popular belief, you can still switch your auto insurance policy if you have an open claim. Switching insurance providers won’t affect the open claim, however. For example, if you have a claim open for an accident and switch insurers, the open claim with your old insurer must still be processed. It cannot be transferred to your new insurer.  

In general, be sure to speak with your insurance agent before switching insurance providers and make sure to get quotes from multiple places. Comparing quotes every so often can help you keep track of the average rates and let you know if you’re paying too much for auto insurance, but your insurance agent can also help provide discounts and save you money in other areas of your policy. 

When Should You Switch Auto Insurance Providers? 

Deciding when the right time is to switch your insurer may be a decision only you can make. If you feel that you would be better off with another insurer when it comes to service and cost effectiveness, it may be time to consider switching insurers. Compare quotes frequently and keep your options open when it comes to car insurance. You should never pay too much for too little insurance coverage, nor should you settle for service that doesn’t suit your needs.