If you’ve been in a car accident or otherwise have had to file a claim with your auto insurance company, it can be the point when you become frustrated with your current company. The claims process can be difficult and is a big reason why people switch insurers. But, can you cancel your car insurance with an open claim?
You always have the right to switch car insurance providers, at any time you want. It doesn’t mean, however, that you’ll be rid of your carrier right away. In this article we’ll talk about switching insurance companies and how an open claim is handled if you do.
Can you cancel car insurance with an open claim?
The easy answer is yes. You can absolutely cancel your car insurance even if you have an open claim. There is no penalty involved, but there may be additional complications.
For instance, before you considering cancelling and moving to a new company, remember that the claim remains with the original insurance company. They will continue moving you through their claims process. Your open claim does not move with you. This can quickly become a hassle, if you have to deal with two insurance companies at the same time. This may not be a big issue, but something to think about. It may make sense to wait until the claim is resolved before cancelling and moving to another company.
Will my claim be covered if I cancel my car insurance?
As long as the incident for which you are filing a claim occurred before your cancellation date, your claim should be covered. So, if you had an accident on May 15 and cancelled your coverage on May 30, your accident should be covered. Remember though, claims should be filed immediately. Waiting to file a claim makes the process more difficult and time consuming.
Best Practices for Switching Car Insurance with an Open Claim
It’s a personal choice whether you want to cancel insurance when you have an open claim. There is not much difference between this scenario and switching insurance companies when you have no open claims.
If you do cancel with an open claim, just make sure to keep all the information you may need to settle the claim handy. Being organized will make the switch much easier.
Also, make sure you understand the cancellation policy of your provider. You will likely need to give them some notice of cancellation. Sometimes this can be as much as 30 days. Some companies charge a fee for cancellation also. In any case, you may receive a refund for the unused portion of your premium once you cancel.
And of course, don’t just cancel your auto insurance without picking up new coverage. A gap in insurance coverage will almost certainly lead to an increase in rates the next time you apply for coverage.
It can make sense to begin to shop around while you are waiting for a claim to settle. Use the Official Auto Insurance form to start the process. We’ll help you find a carrier that fits your needs and, hopefully, has a better claims process than you have experienced.