As a rule, you are free to cancel your auto insurance policy whenever you want. An auto insurance policy is an agreement between the driver (or policyholder) and the insurer, and either party has the right to cancel that agreement. You may want to take care before doing so while you have an open claim, however.
While you can change your auto insurance policy while you are going through the claims process, this won’t affect the claim that is open. For example, say you get into an accident and file a claim. While the claim is being processed and before it is approved, you decide to cancel your car insurance and switch to a different insurer because you are unhappy with your previous insurer’s services.
Although you switched insurers, your claim will not transfer over. Instead, you will need to complete the claims process with your original insurance provider. When you need to file another claim, however, you can file one with your new insurance provider as opposed to the previous insurer.
Can You Change Car Insurance Coverage During an Open Claim?
The same general rules apply if you stick with the same insurer but instead decide to change your coverage. In this case, you can change your coverage, but it will not apply to the current claim.
For example, say you do not have uninsured motorist liability on your current auto insurance policy. You get in an accident with another driver who is not carrying insurance, so you decide to add uninsured motorist insurance to your policy. Unfortunately, since you did not have this insurance at the time of the accident, adding it now will not affect the currently claim—meaning that the damages from the uninsured driver may not be covered even though you change your auto insurance coverage.
Before changing your coverage or switching insurance providers, be sure to speak with your insurance agent and compare quotes. Switching your auto insurance directly after an accident can actually cost you more than remaining with your current insurer. A history of claims or cancelled policies can also raise your car insurance rates.
Insurance agents will generally try to help you save money so that you will remain with their business, so be sure to ask about discounts you may qualify for even after an at fault accident.
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