Can you switch car insurance after an accident?

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When you get into a wreck — whether it’s a minor fender-bender or a major crash — it puts your car insurance company to the test: Does the insurer come through when you really need it? In most cases, the insurer will do a good job. However, there are occasions when an insurance company disappoints a policyholder. Or, the insurer might hike your rates after the accident.

If either of these things happens, look for a new insurer. While you can switch insurers after an accident, there are several factors to consider before making the change. Switching after filing a claim for an accident might not always be the best decision. The new insurer will review your recent claims history, and having a recent accident on your record could lead to higher premiums.

Additionally, some companies may hesitate to take on a new policyholder with a recent accident, especially if the claim is still open or under investigation.

If you decide to switch insurers, it’s crucial to ensure no lapse in coverage between policies. A lapse could leave you vulnerable to penalties, additional costs, or even legal consequences. Read on to learn more about switching insurers after an accident.

Key Takeaways

While you can switch insurers after a recent accident, you should evaluate if it will cost more in the long term.
Ask your current insurer if they can match the new insurance company’s rate before you switch.
Before you switch carriers, make sure you settle all the open claims with your old insurer. Otherwise, you’ll have to work with two insurers until your claim is settled.
Choosing to switch car insurance companies can result in losing several discounts, including loyalty or bundling discounts.

Can you switch car insurance companies at any time?

You can change your car insurance provider whenever you want. While most people switch insurers at the end of their policy term, you can switch in the middle of your policy’s term if necessary.

Rate increases are a significant factor in why people switch insurance companies. The table below looks at how rates can increase after an accident.

State	Rate before accident	At- fault rate	At- fault bodily injury	Two at-fault accidents
Alaska	$1,676	$2,353	$2,353	$3,110
Alabama	$1,860	$2,877	$2,884	$3,932
Arkansas	$1,957	$3,009	$3,055	$4,121
Arizona	$1,812	$2,773	$2,898	$3,778
California	$2,416	$3,977	$4,779	$6,335
Colorado	$2,337	$3,428	$3,517	$4,608
Connecticut	$1,725	$2,721	$2,805	$5,130
Washington, D.C.	$2,157	$3,077	$3,099	$4,034
Delaware	$2,063	$3,059	$3,099	$4,424
Florida	$2,694	$3,991	$4,004	$5,294
Georgia	$1,970	$3,093	$2,961	$4,236
Hawaii	$1,517	$2,116	$2,116	$2,603
Iowa	$1,630	$2,364	$2,371	$3,083
Idaho	$1,428	$2,159	$2,324	$3,019
Illinois	$1,532	$2,344	$2,372	$3,354
Indiana	$1,515	$2,506	$2,512	$3,873
Kansas	$1,900	$2,959	$3,028	$4,013
Kentucky	$2,228	$3,569	$3,655	$4,774
Louisiana	$2,883	$4,291	$4,258	$6,082
Massachusetts	$1,726	$2,669	$2,695	$3,969
Maryland	$1,746	$2,745	$2,884	$3,716
Maine	$1,175	$1,751	$1,692	$2,589
Michigan	$2,352	$3,661	$3,698	$6,621
Minnesota	$1,911	$2,912	$2,968	$4,234
Missouri	$1,982	$2,866	$2,929	$3,729
Mississippi	$2,008	$3,379	$3,533	$4,730
Montana	$2,193	$3,085	$3,085	$3,837
North Carolina	$1,741	$2,742	$3,310	$3,528
North Dakota	$1,665	$2,222	$2,372	$3,048
Nebraska	$1,902	$3,099	$3,099	$4,405
New Hampshire	$1,265	$1,855	$1,948	$2,586
New Jersey	$1,902	$3,439	$3,449	$5,427
New Mexico	$2,049	$2,940	$2,970	$3,826
Nevada	$2,060	$3,221	$3,293	$4,442
New York	$1,870	$2,311	$2,557	$3,337
Ohio	$1,417	$2,370	$2,416	$3,563
Oklahoma	$2,138	$3,119	$3,270	$4,061
Oregon	$1,678	$2,640	$2,730	$3,596
Pennsylvania	$1,872	$2,691	$3,205	$4,031
Rhode Island	$2,061	$2,124	$2,881	$2,149
South Carolina	$2,009	$2,886	$2,895	$3,731
South Dakota	$2,280	$3,189	$3,189	$4,158
Tennessee	$1,677	$2,609	$2,654	$3,550
Texas	$2,043	$3,485	$3,457	$4,938
Utah	$1,825	$2,875	$2,926	$4,376
Virginia	$1,469	$2,283	$2,362	$3,232
Vermont	$1,319	$1,848	$1,903	$2,756
Washington	$1,608	$2,458	$2,508	$3,944
Wisconsin	$1,664	$2,533	$2,538	$3,592
West Virginia	$2,005	$2,989	$2,954	$4,129
Wyoming	$1,758	$2,454	$2,454	$3,221

An Insure.com analysis of more than 5 million insurance quotes found that nationwide, rates typically jump an average of 56% after one at-fault accident that costs more than $2,000 in damage.

Where you live can play a big role in how much your premiums will increase.

For example, the Insure.com analysis found that after one at-fault accident, you can expect to see your rates jump 81% on average in New Jersey.

That is by far the largest increase for any state in the country.

A New Jersey driver who was paying $1,902 annually before an at-fault accident is likely to pay $3,449 after the crash.

By contrast, drivers in Rhode Island see the smallest rise in insurance rates after a single at-fault accident. They can expect their rate to rise just 3%, from $2,061 before the accident to $2,124 after.

Our recommendation:

Don’t switch if you just started a new policy term. Your current insurer cannot raise your rates until policy renewal, so they will often be your cheapest option for the time being. When your policy term is up, shop for new coverage.
Do switch if you are near the end of your policy term and find a cheaper rate from another insurer. If you switch insurance companies after an accident, timing should be considered. In most cases, you should avoid making any changes on the same day as an accident. This may be a red flag for insurers and could lead them to look more carefully into your driving record and other risk factors. That could eventually lead them to decline to offer you coverage. Additionally, insurers can see your claims and accident history through a CLUE report, so they will be aware of anything that happened within the last seven years. Most experts recommend waiting until after the claim process is well underway before switching insurers.

Can I switch insurers during an open claim?

You can change your car insurance company even with an open claim for an accident, although it’s not ideal because you’ll have to work with two insurers until your claim is finally settled.

Suppose you switch car insurance companies after the accident. In that case, you’ll need to continue cooperating with your old insurer to settle outstanding claims while also getting a policy with a new insurer.

Your previous insurer should work the claim with the same speed and professionalism, whether or not you’re still a customer. If you are sued due to the accident, your former insurer must defend you in court and pay any settlements or judgments up to your coverage limits.

Additionally, you won’t be able to change your insurance company and file a claim with your new insurer for the accident. The insurer that you have at the time of the accident is the one that handles and pays the claim if you were at fault for the accident.

You also cannot switch your coverage limit or deductible after an accident to help pay for an incident that already happened. The coverage, limits and deductible at the time of the accident will be in place for any claims.

Attempting to make policy changes and then falsifying the date of the accident is considered insurance fraud. It will usually end in a void policy and being dropped from your insurer, and possibly a visit from law enforcement.

What to consider before changing insurance companies after an accident

While you have the freedom to switch car insurance companies at any time, doing so doesn’t necessarily mean you should, nor does it guarantee you’ll pay less than you have been.

“Motor vehicle records are used by insurers to determine risk, and those generally stay on your record for up to three years. So, before you switch insurance companies after a crash or claim of any kind, determine if that will actually save you any money and provide you the same level of coverage,” says Carole Walker, executive director at the Rocky Mountain Insurance Association, a nonprofit organization that represents property and casualty insurers in Colorado, New Mexico, Utah and Wyoming.

Here are a few things to consider before making a move:

Discounts: You may lose a few discounts and perks when moving to a new insurer. A loyalty discount takes a few years to qualify for, as does a vanishing deductible perk. Be sure to calculate how much money you’d lose in the long term before switching.
Rates stay the same: Legally, your current insurance company cannot raise your rates mid-policy term, so your rate will stay the same until your renewal period. But if you switch to a new insurer, it will consider your recent accident and likely charge you a higher premium. If your current insurer raises your rates at renewal, that is a good time to consider switching carriers.
Cancellation fees: Some insurers may charge a cancellation fee if you drop your coverage mid-policy.

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When does it make sense to stay with your current insurer?

Your current insurance company may still be the cheapest option. Even if your insurer raises your rates at renewal, insurers can’t make mid-policy changes to your premium in most states. This means you will still have some time before you pay higher rates. Renewal is the best time to find a new insurance company.
You may qualify for a loyalty discount with your current insurer. Some insurers offer a loyalty discount of 3% to 4% for renewing with them year after year.
If you switch, you may lose out on certain perks. For example, if you have accident forgiveness with your current provider, you may want to take advantage of this perk for the accident instead of changing insurance companies. A vanishing deductible is another perk that insurers offer long-term policyholders, and eligibility typically takes a few years.

Expert tip:

After an accident, knowing higher rates might be coming, you might be thinking about quickly switching to a new insurer. But don’t be too hasty. Consider staying with your current insurer at least until your renewal period. Your current insurer cannot up your rate until your renewal period, while a new insurer will consider your accident.

When doesn’t it make sense to stay with your current insurer?

If you are near the end of your policy term, there is a good chance your premium will increase, as your current insurance company can reprice your policy. And, if you have a claim, there’s a chance the insurance company will raise your rates significantly. That’s an excellent signal to shop around.
If you have lost major discounts and perks such as safe driver, accident forgiveness and a vanishing deductible, it may make sense to switch to another insurer, particularly one that offers a better rate.
If you were unhappy with the customer service you received during the claims process or were not compensated fairly, you may consider moving to a new insurer.

How to switch car insurance companies after an accident

If you’re looking for a way to save money on your car insurance, switching providers may be the answer. Here’s how you can switch car insurance:

Determine the amount of coverage you need: Research what types of coverage insurance companies provide and how much coverage you need. You can learn more about different coverage levels here.

Compare car insurance companies: When looking for a new car insurance company, make sure you get quotes from at least three insurers. Rates vary depending on the type of coverage and limits you choose, so compare similar coverage levels and deductibles. And check out insurers’ reviews and claims-paying ability. You don’t want to wind up with a financially unstable company or one with poor service, should you need them.

Contact your current car insurance company: If you’re thinking about switching insurance companies, talk with your current insurer first to see if they can match the rate another company offers.

Check for cancellation fees and refunds: Check with your current insurer to see if there are any fees for canceling your insurance policy. Usually, you can cancel for free at any time, but some companies might charge a fee if you cancel your policy midterm. Your insurer may also owe you a premium refund if you have already paid for the full policy term. Refunds are typically prorated to the date of cancellation.

Always avoid a coverage gap: Be sure to buy a new policy before canceling an existing policy. Switching your car insurance before your policy expires can lead to a lapse in coverage. This means you will not have insurance for a certain amount of time. If you are in an accident during this time, you will need to pay for damages — including any medical bills — out of pocket. Additionally, some insurance companies will charge you a higher premium if you have a coverage gap on your record.

Don’t forget to cancel your old policy: Once you have your new insurance coverage, it’s time to cancel your old policy. Remember that if you have any open claims, your old company will still handle those claims.

Tips for switching car insurance companies after an accident

1. Determine how much coverage you need. Explore what different insurers provide and determine the type and amount of coverage that best suits your needs.

2. Compare quotes from insurers. Gather quotes from at least three insurers. Make sure you are comparing similar coverage levels and deductibles.

3. Contact your current insurer. See if your company will match the lower rates other providers offer.

4. Look into cancellation fees. Find out if you will owe a cancellation fee for terminating your current policy before the end of the term.

5. Avoid a coverage gap. Before switching companies, ensure you will not be caught for even a single day without insurance coverage.

How to get cheap car insurance after an accident

While your rates likely will increase after an accident, there are a few ways to save money on your next car insurance policy.

“Ask about accident forgiveness, longevity discounts, bundling coverage or any other discounts that may help you offset higher insurance costs,” Walker says.

Here are a few tips to help keep your insurance affordable:

Consider your current insurer: Your current insurer may still be the cheapest option. It cannot raise your rate until your renewal period, while a new insurer will consider your accident.

Shop around every 6-12 months: Insurers rate risk differently, which can result in dramatic differences in premiums. Get quotes from at least three insurance companies.

Take advantage of discounts: Discounts and perks can help lower your premium. Ensure you get all the discounts you are qualified to receive.

Raise your deductible: If you can afford to raise your deductible, your insurer should lower your premium. Always choose a deductible you can easily afford if you have to make a claim.

Take a defensive driving course: Many insurance companies will discount drivers who take a defensive driving course after a ticket or accident.

Adjust your coverage: If your vehicle is old, consider dropping collision and comprehensive and just carrying liability.

Think about pay-as-you-drive or usage-based insurance (UBI): These types of policies are based on when you drive, how much you drive, and how well you drive.

What are the risks of changing insurance companies?

There could be a downside to switching carriers. If you change insurance companies, you’ll lose any loyalty discounts. If you bundle auto and home with your current insurer, you may not see the same discount with your new insurer. You could also lose accident forgiveness.

What our expert says

Carole WalkerExecutive director of the Rocky Mountain Insurance Information Association.

“Motor vehicle records are used by insurers to determine risk and those generally stay on your record for up to three years. So, before you switch insurance companies after a crash or claim of any kind, determine if that will actually save you any money and provide you the same level of coverage.”

Frequently asked questions

Can I change my deductible after an accident?

You can’t change your deductible amount after an accident. This is usually decided at the beginning of a policy and will remain unchanged until the policy expires.

Can you change car insurance during a claim?

You can always switch car insurance companies, even with an open claim. However, make sure not to cancel your old policy until the day your new policy starts. Otherwise, there could be a lapse in your insurance coverage.

Even if you switch insurance companies, your open claim will not transfer. You must contact the old insurer until the claim is paid out.

Is there a fee for switching car insurance companies?

Some insurers charge a small cancellation fee, so check your policy wording for details on cancellation fees. Most policies allow you to cancel without penalty, but you may have to notify your insurance company in writing.

Can you get a refund from your current insurer if you switch companies?

If you have paid in full for a policy term but are switching before your renewal, your insurance company should refund any unused premiums. Depending on your policy details, you may need to pay a cancellation fee.

Can I switch to full coverage after an accident?

Yes, but any new coverage cannot be used retroactively. It will only apply to accidents that happen after the date you added the extra coverage.

Methodology

Insure.com’s rate quote analysis was based on 40-year-old male and female drivers driving a Honda Accord LX with 100/300/100 coverage and a $500 comprehensive and collision deductible. The analysis included more than 5 million quotes from 138 insurance companies.

Mark Vallet

Contributing Researcher

Mark is a freelance journalist and analyst with over 15 years of experience covering the insurance industry.

On this page

Can you switch car insurance companies at any time?
Can I switch insurers during an open claim?
What to consider before changing insurance companies after an accident
When does it make sense to stay with your current insurer?
When doesn’t it make sense to stay with your current insurer?
How to switch car insurance companies after an accident
How to get cheap car insurance after an accident
What are the risks of changing insurance companies?
What our expert says
Frequently asked questions
Methodology