Can I Change Car Insurance Companies if I Have an Ongoing Claim?

Most car insurance policies last either 6 or 12 months, coming up for renewal at the end of the term. At that point, policyholders often have the opportunity to switch insurers if they find a better deal or are unhappy with their current provider.

But what happens if you are in the middle of the claims process or even a lawsuit after a car accident when your policy is up for renewal? Can you still change your insurance company? Let’s break it down and see how this can impact your claim.

Understanding the Claims Process

When you file a claim with your car insurance company after an accident, your current insurer handles everything related to that incident. This includes investigating the accident, assessing damages, and negotiating settlements.

If you are in the middle of this process, you might worry that changing your insurance company could complicate things. The good news is that switching insurers does not stop your ongoing claim.

Your Claim Won’t Be Interrupted

If you decide to change your insurance company while you have an ongoing claim, your old insurer will continue to handle it until it is resolved. Insurance policies are designed to cover incidents that occur during the policy period, even if you switch to a new carrier later.

Any accident that happens while your old insurer covers you remains their responsibility, regardless of whether you renew your policy or switch to a new company.

Say you had an accident on September 1, and your policy is up for renewal on October 1. If you switch to a new insurer on October 1, your old insurer will still manage the claim related to the September 1 accident.

Your insurer must see the claims process through to its conclusion, as the incident occurred while you were under their coverage. However, carefully read your policy’s declarations page to understand the covered timeframes.

Impacts of Changing Carriers

Changing car insurance companies does not affect the legitimacy or processing of your ongoing claim. However, there are a few points to keep in mind:

• Documentation and Communication: Ensure you keep all documentation related to your claim and maintain open communication with your old insurer. This helps ensure a smooth process for receiving the compensation you are entitled to even after you’ve switched providers.
• Renewal of Claims: If a claim extends over a long period, updating or renewing claim-related information may be necessary. A knowledgeable attorney can help you effectively communicate with your previous insurer and other involved parties for a smooth claims resolution during and after the switch.
• New Policy Coverage: Your new insurance policy will only cover incidents that occur after the start date of your new policy. Your new insurer will handle any new accidents or claims from the date of policy inception.

Switching Insurers in Louisiana

As in many states, switching car insurance companies is straightforward in Louisiana. Follow these steps:

• Compare New Policies: Before making any changes, compare the new insurance policy’s coverage, premiums, and benefits to ensure you are making a beneficial switch.
• Notify Your Current Insurer: Inform your insurer that you will not renew your policy. You must provide notice according to their requirements, usually specified in your policy documents.
• Ensure Continuous Coverage: Make sure there is no gap between your old policy ending and the new one starting. Continuous coverage is crucial to avoid legal issues and financial penalties.
• Transfer Important Information: Collect all documentation from your old insurer regarding your ongoing claim. This can include copies of the claim report, correspondence, and other relevant documents.

Ready to Switch Insurers? Contact Us for Guidance!

Insurance claims can be complicated, especially when dealing with the aftermath of a car accident. If you feel overwhelmed or unsure about your rights and obligations, seek legal assistance from a Louisiana car crash lawyer.

Although switching car insurance companies during an ongoing claim is possible, a qualified attorney can help protect your interests. Our experienced attorneys can stay on top of the claim with your former insurer and handle communication between all parties.

Contact us today for a free case review. We’ll discuss your claim and how changing insurance companies might affect it.

Disclaimer: This content has been reviewed by Chad Lederman, Director of Legal Operations at our New Orleans office.

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