A while ago, I posted about a car accident I was in and the ongoing legal case because of it. I’m now considering switching to a new car insurance provider. My current rate is around $1,000 a month, but I found a new provider that would charge me only 30% of that, even after I tell them about the accident. That’s why I want to know if I can still switch while the claim is open. My main concern is whether insurance companies are allowed to take new customers with open claims, or if that’s something they avoid doing?
To clarify from what others have said, the claim stays with the company that insured you at the time of the accident. So, even if you switch insurers, your current company will handle the claim. Feel free to make the switch.
@Cameron
Once the claim is settled, the new company may increase your rates when you renew… but you might get a year with the lower rate before that happens.
(Just a general thought, not a reply to this comment)
Yes, they can do that, but they might hesitate depending on how serious the claim is. There’s nothing stopping them from accepting you, though.
Some companies won’t let you switch if there’s an open claim. You have the right to try, but you’ll have to let them know about the claim when they ask.
Mal said:
Some companies won’t let you switch if there’s an open claim. You have the right to try, but you’ll have to let them know about the claim when they ask.
When you say they’ll ask, what exactly do you mean? I’ve been getting quotes online and filling out accident details, but I’ve never been asked directly, ‘Do you have an open claim with your current insurer?’
Mal said:
Some companies won’t let you switch if there’s an open claim. You have the right to try, but you’ll have to let them know about the claim when they ask.
They might check your CLUE report electronically. If they find your claim, you’ll likely have to contact their support to explain the details of the claim before you can finish the transaction.
Mal said:
Some companies won’t let you switch if there’s an open claim. You have the right to try, but you’ll have to let them know about the claim when they ask.
Wow, I didn’t know that. Now that I know, should I try to buy the new insurance first before canceling my current policy, just in case I can’t switch over?
Mal said:
Some companies won’t let you switch if there’s an open claim. You have the right to try, but you’ll have to let them know about the claim when they ask.
I wouldn’t cancel your current insurance until the new policy is confirmed. If you’re ready to buy, go ahead and finish the purchase and see what happens.
You can change insurance companies whenever you want, but the new company might not cover you if the claim is still open. For vehicle damage, they might want repairs done first before covering.
Corin said:
You can change insurance companies whenever you want, but the new company might not cover you if the claim is still open. For vehicle damage, they might want repairs done first before covering.
The claim is for medical costs for the other party.
Yes, this happens all the time. Nothing unusual about it.