For many people, navigating the world of insurance can be a bit confusing. If it seems difficult on a normal day, figuring out your eligibility once you need to use your insurance coverage may be even harder.
If you are going through the process of collecting on an insurance claim, and you are frustrated – you may wonder if you have the right to switch car insurance companies before everything is settled.
If you feel that you can get a better rate, that you are not being treated fairly, or that your insurance company is simply not right for you – you have the right to change your auto insurance policy at any time you wish. Your insurance coverage can be switched for no reason and your insurance company should not give you any trouble regarding switching – it is an every day occurrence.
However, when you are in the middle of an insurance claim, there are a few things that it is important to remember.
- Your claim will remain with the original insurance company. If you switch providers mid-claim, the company which was providing you coverage at the time of the incident will be the one to continue with the claim.
As long as your policy was paid up to date and you were abiding by the rules of your policy, they will have no reason to not pay out your claim, even if you are no longer their customer. You will still be held responsible for any deductibles or out-of-pocket costs as outlined in your policy. - It is important to understand that your new insurance company will not cover the incident under any circumstances. In other words, switching insurance companies to try for a better payout will not work, neither will trying to claim the incident twice. One insurance scam which is definitely ill-advised is to receive a payout under your original company, and then try to convince your new insurance company that the accident happened after you switched to them. Ninety-nine percent of auto insurers log their claims in the Claim Loss Underwriting Exchange, or CLUE – and so double-dipping is likely to be discovered.
- You may have some difficulty finding competitive rates at another company if you are processing through a claim. It depends largely on the situation you find yourself in – new insurance companies may see you as a greater risk if you were determined to be at fault. As noted, all claims are logged, so your new insurers will see your past and present claim history. Still, car accidents do not seem to raise suspicion – or rates- as frequently as slip-and-falls or dog bites.
- Because auto insurance is a requirement, your new insurer may ask for proof that you are currently insured before agreeing to provide you with coverage. Letting your coverage lapse is generally frowned upon, and although it won’t prevent you from gaining new insurance (once you explain the gap) your rates may be higher.
- Attempting to get paid by another insurance company – or two insurance companies – is considered insurance fraud. Companies may blacklist you, making it impossible to get insurance. Depending on the situation, they may also file criminal charges.
If you are unsatisfied with your insurance company, or have any questions regarding switching your policy, call the Sarasota and Palmetto insurance experts at Anderson & Associates Insurance Group. We are happy to help you to navigate the pitfalls of car insurance and advise you as to what you can reasonably expect from your insurance coverage.
