When Can I Switch My Auto Insurance Provider?

• $25,000 in bodily injury liability per person 

• $50,000 in bodily injury liability per accident 

• $10,000 in property damage liability 

• $50,000 in no fault coverage 

If you are thinking about leaving your current insurer, make sure to research other insurance providers and compare quotes for the same coverage you need. Minimum liability may not be enough to cover all accidents concerning your vehicle. Most insurers recommend that you carry full coverage in order to completely protect your vehicle and passengers. 

Compare Quotes with Multiple Insurers 

Despite common misconception, receiving multiple quotes won’t affect your credit or your ability to find auto insurance. In fact, it is in your best interest to get quotes from various insurers and compare coverages. Sometimes the grass may look greener on the other side, but then you realize that you are being quoted much more for much less coverage. On the other hand, you may discover that you’ve been paying twice as much as you should have. 

Shop around to make the best decision when it comes to your wallet. 

Do You Have an Open Claim? 

Believe it or not, you can actually switch car insurance providers in the middle of an open claim. This isn’t always recommended for two main reasons: 

1. Your current claim won’t be affected by the change 

2. Your car insurance rates could go up 

Say you are in the middle of an open claim for an accident and unhappy with how your insurer has been handling it. You decide to switch insurers while the claim is still open, hoping to get a better settlement. Unfortunately, it doesn’t work this way. Instead, your original insurer will handle the rest of your claim up until settlement and closing. After that, all future claims will be handled by your new insurance provider.  

The same applies if you simply want to change policies but not insurers. For example, if you are in an accident with an uninsured driver and you don’t have uninsured motorist coverage, adding uninsured motorist coverage after the fact will not be of any help to the current accident. It will, however, protect you from uninsured motorists in the future. 

Watch for Timing 

Timing also ties into the previous note: if you change insurance providers during an open claim or directly after an accident, you could see a jump in your auto insurance rates. Keep in mind that accidents do not follow your insurance policy, but your driving record. Even if you switch insurers, a recent accident can still affect your premiums. For example, a single at-fault accident could raise your rates for three to five years while a DUI could remain on your driving record for 10 years depending on your location and other factors. 

Switching directly after an accident isn’t always the best way to save money. In some cases, your insurance provider may be willing to work with you to save money in other areas. 

Was Your Policy Cancelled? 

Unfortunately, there are circumstances in which you must switch insurance providers outside of your own volition, such as if your policy is cancelled by your original insurer. This may happen due to nonpayment, fraud or the driver has become too high risk to insure. 

In this case, it can be harder to find auto insurance again, much less at an affordable price. Having your auto insurance policy cancelled for being too high risk can also narrow your choices when it comes to insurance providers. 

High risk refers to drivers who are likely to cause the insurance provider money, such as those with poor driving records and a history of claims. If you are a high risk driver, you could have less options for affordable auto insurance than drivers with a better record. The same applies for drivers with poor credit. If your credit takes a hit, your policy could be cancelled and it could be hard to find another one that is affordable. 

No matter what your decision for switching your auto insurance policy or provider, be sure to compare quotes and speak with insurance agents.