Updated: April 10, 2025
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You can switch insurers after an accident, even with an open claim, but your current provider may charge a cancellation fee if you end your policy early.
An accident may increase your premiums with a new insurer because your risk profile has changed. This makes it important to compare quotes before switching insurance companies.
Ensure you have continuous coverage when switching insurers to avoid penalties or gaps that could leave you uninsured and at financial risk.
Being involved in an accident doesn't prevent you from switching car insurance companies. You can change policies anytime if you find a better deal.
Auto insurance costs an average driver $1,424 per year. An accident on your record will increase that to $2,237 annually.
Switching car insurance companies is typically simple. Once you find the right coverage from a new company, contact your old and new insurers to coordinate the switch. Here's a step-by-step guide to help you understand the process and avoid mistakes.
You can change car insurance at any time. Your first step is to determine how much car insurance you need. Consider your state's requirements and how your recent accident affects costs.
Contact your current insurer to determine if you're qualified for refunds or if the insurer charges cancellation fees. If you have an open claim, find out if it will affect your credentials.
Finding the best car insurance after an accident can be challenging. Premiums increase because insurers see you as a higher risk. You can still find affordable coverage by researching options. Compare quotes from multiple companies to save money.
A lapse in insurance coverage can cause several problems, including higher future rates. If your coverage lapses and you have an accident, especially if you're at fault, you may have to pay for damages yourself. You might also face fees or increased rates due to the lapse. To avoid these extra costs, wait to cancel your current policy until you've purchased a new one.
Replace your old insurance ID with the new one, whether physically or digitally. You can switch cards in your wallet or glove box, or download your new insurer's digital card.
You can switch insurance providers even if you have an open claim. This change won't affect your claim. You'll simply need to work with two different companies. Your first insurer will continue handling your existing claim until it's settled.
You can switch your car insurance provider anytime, but it might not always be the best choice.
If you change companies after an accident, you'll work with two insurers until your open claim is settled. Your old provider will handle your existing claim.
Don't expect to find cheaper premiums by switching after an accident. Most insurers charge higher rates for drivers with accidents on their record. Also, insurance companies can't change your premium during your policy term.
The best car insurance companies balance affordability with quality customer service. You can switch companies anytime if you're dissatisfied with your current provider. Consider your circumstances and needs first.
You can change car insurance companies anytime. But if you're switching after an accident, consider several factors first to determine if it's a good idea.
A crash will raise your rates, especially if you're at fault. However, insurance companies usually can't change premiums during your policy period. Shop around and compare rates to find the best deal before deciding whether to switch.
The best and cheapest car insurance depends on your needs and driving record. When deciding, look beyond just cost to consider service quality. If you're satisfied with your current insurer's service, staying with it rather than switching providers is better.
You may have to pay a cancellation fee for ending your insurance mid-policy. It's usually better to stay with your current insurer to avoid these fees. If you want to switch, consider waiting until your policy expires.
Check if your insurer offers prorated refunds of your unused premium. Sometimes, insurers deduct fees from this refund.
Switching car insurance might cause you to lose discounts and special coverage from your former insurer. Before signing up for a new policy, check that the new rate is at least as affordable as your current rate, with all discounts included.
Insurance companies charge higher rates after a collision because they view you as a high-risk driver. However, you can still reduce your car insurance costs after an accident.
Many factors affect insurance costs, including location, age, credit score, car type, coverage needs and driving record. Your premiums might increase when your plan renews or when you switch insurers after an accident. Fortunately, several strategies can help lower premiums after an accident.
Always inform your insurer about an accident immediately, regardless of its severity. Failing to do so could give your insurance company a reason to deny coverage under your policy.
By taking a refresher course, you show your insurer you're trying to improve. Some insurers also offer discounts for completing a defensive driving course.
Choosing a higher deductible can help you save on your premium. However, you could pay more out of pocket after a crash.
Insurers offer various discounts that can save you money. Common discounts include:
Some companies also offer discounts based on your education level, age and payment terms. You might get a discount for paying your premium in full rather than monthly.
Compare different insurance companies and look for discounts that match your situation.
Shopping for a new policy might help you find better rates. While you'll likely pay more than you did with a clean driving record, another insurer might offer lower rates than your provider. Your current insurer might also match a new policy quote if you ask.
You can switch car insurance after an accident, even with an open claim, but you might face higher premiums or cancellation fees. We've covered when switching makes sense, how to compare quotes and steps to maintain continuous coverage without penalties or gaps.
This section answers common questions about policy changes, potential fees and how an accident affects your rates, helping you make an informed decision.
You can change your policy anytime. You may need to pay a cancellation fee; a collision on your record could increase your insurance rates.
You can still cancel your policy, and your current insurer will still honor your claim.
Some providers charge a cancellation fee, while others offer prorated refunds. Check your terms and policies before switching car insurance companies.
The average driver pays $1,424 per year for insurance, while a driver with a record pays $2,237.
Taking a defensive driving course, increasing your deductibles and maximizing car insurance discounts can help lower costs when you look for a new provider.
Buy your new policy before canceling your current one, and ensure you’ve paid all fees.
MoneyGeek offers unbiased reviews and comparisons of car insurance companies. Our experts, with years of experience in the insurance industry, compile reviews and information. We provide helpful tools like quotes, guides and FAQs to help you find the best car insurance for your needs. We also offer free quotes to compare rates before applying for coverage.
To determine the best car insurance providers after an accident, MoneyGeek uses data from sources such as:
Experts' Contributions
MoneyGeek consulted three experts to help you determine the best steps after a car accident:
Editorial Team
MoneyGeek's editorial team researches financial topics and creates content that answers readers' questions. Our team follows a strict editorial process to provide high-quality, trustworthy information.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
