Is it a bad idea to change auto insurance after an accident?

If you aren’t thrilled with your current automobile insurance and want to find a new auto insurance company, is it bad to change auto insurance after an accident?

Why not try asking yourself, “Is it bad to change auto insurance after an accident if I want more affordable auto insurance?” instead. You can switch auto insurance companies after you’ve been in an accident. You can even cancel your current policy while you have a claim open.

Whenever you are unhappy with your current insurance policy, you can switch insurance companies, but there are a few things all drivers should be switching insurance companies. Read this guide before you switch companies simply because you’ve been in an accident and are afraid if your rates will rise. (For more information, read our “How to Switch Auto Insurance Companies“).

If you find yourself asking, “Is it bad to change auto insurance after an accident?”, then enter your ZIP code above to compare free auto insurance quotes from local companies today.

Can drivers switch their auto insurance after an accident?

If you’re concerned about the state of your auto insurance rates, is it bad to change auto insurance after an accident? Not necessarily.

After being in an accident, you could see your insurance rates rise by an exorbitant amount, even if the accident wasn’t your fault.

I want to change my insurance coverage after accidents can certainly seem pretty appealing when facing such a high premium increase. If you think switching is the best step for you, getting insurance after an accident is easier than you may think. (For more information, read our “How Accidents Change Your Car Insurance Rate“)

Changing your auto insurance policy after an accident is not all that difficult. Shop online so you can compare auto insurance quotes from multiple companies and find the right insurance provider for you.

What should drivers consider before switching insurance companies?

If you want to buy auto insurance, is it bad to change auto insurance after an accident? To answer that question, consider the following:

• Will you lose any discounts if you change car insurance after an accident?
• Can you bundle all of your insurance policies with the new company?
• Will there be a coverage lapse between the new policies?

You may lose a loyalty discount when you switch auto insurance companies, but if you bring all of your insurance policies over to the new company, you should still be able to benefit from a multi-policy discount.

Before you change auto insurance companies after an accident, be sure that there isn’t a lapse in coverage before your new policy starts. Having a gap in coverage means you are unprotected on the roads and could lose your license if caught driving without insurance.

If you lease your vehicle or have a car loan, you should also let your lender know about the change in your insurance company. You’ll need to send over proof of insurance with the new insurance company so the lender can confirm that you are still meeting coverage requirements.

Read more: Is it a bad idea to remove a car from your insurance?

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How To Cancel Auto Insurance After an Accident

Thankfully, changing your auto insurance policy after an accident is not difficult.

Typically, you’ll need to write out a request to cancel your policy in an email or a letter. Be sure to include your current policy number and the desired end date.

Bear in mind that every company’s process has its own nuances. Contact your provider directly to find out what your company needs from you to cancel the policy. You may even be able to get a prorated refund from your canceled policy depending on when you cancel it.

How can drivers lower their auto insurance rates after an accident?

If you get into an accident, you could see your rates rise, but there are a few strategies that can lower your premiums. You can either increase your deductibles, shop online for better rates, or adjust your coverage amounts. (For more information, read our “Is it a bad idea to have a high deductible on your auto insurance?“).

You can also review all the discounts your insurance company has available. Take a look at these discounts offered by major insurance companies and see how much you can save:

Auto Insurance Discounts Available by Company and Discount Amount

Discount Name
Adaptive Cruise Control	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Adaptive Headlights	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Anti-lock Brakes	10%	✓	✓	5%	5%	5%	✓	5%
Anti-Theft	10%	✓		23%	20%	25%	✓	15%
Claim Free	35%	✓	✓	26%	✓	10%	✓	15%	23%	12%
Continuous Coverage		✓	✓		✓	✓	✓	✓	15%	✓
Daytime Running Lights	2%		✓	3%	5%	5%	✓	✓
Defensive Driver	10%	10%	✓	✓	10%	5%	10%	5%	10%	3%
Distant Student	35%	✓	✓	✓	✓	10%	✓		7%
Driver's Ed	10%	✓	✓	✓	10%	✓	10%	15%	8%	3%
Driving Device/App	20%	40%	✓	✓	30%	40%	20%	50%	30%	5%
Early Signing	10%	✓	✓	✓	✓	8%	✓	✓	10%	12%
Electronic Stability Control	2%	✓	✓	✓	5%		✓	✓	✓	✓
Emergency Deployment	✓	✓	✓	25%	✓	✓		✓	✓	✓
Engaged Couple	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Family Legacy	✓	✓	✓	✓	✓	✓	✓	✓	✓	10%
Family Plan	✓	✓	✓	✓	✓	25%	✓	✓	✓	✓
Farm Vehicle	10%	✓	✓		✓	✓		✓	✓	✓
Fast 5	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Federal Employee	✓	✓		12%	10%	✓		✓	✓	✓
Forward Collision Warning	✓	✓	✓	✓	5%		✓	✓	✓	✓
Full Payment	10%	✓	✓		$50	✓	✓	✓	8%	✓
Further Education	✓	✓			10%	15%		✓		✓
Garaging/Storing	✓	✓	✓		✓	✓	✓	✓		90%
Good Credit			✓	✓	✓		✓		✓	✓
Good Student	20%	✓		15%	23%	10%	✓	25%	8%	3%
Green Vehicle	10%	✓	5%	✓	10%	✓	✓	✓	10%	✓
Homeowner	✓	✓	✓		✓	5%	✓	3%	5%	✓
Lane Departure Warning	✓	✓	✓	✓		✓	✓	✓	✓	✓
Life Insurance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Low Mileage		✓		✓			✓	30%
Loyalty	✓	✓	✓	✓	✓	5%	✓	✓	✓
Married	✓	✓	✓	✓			✓		✓
Membership/Group	✓	✓	✓		10%	7%		✓		✓
Military		✓	✓	15%	4%	✓			✓
Military Garaging	✓	✓	✓	✓	✓	✓	✓	✓	✓	15%
Multiple Drivers	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Multiple Policies	10%	29%	✓	10%	20%	10%	12%	17%	13%
Multiple Vehicles		✓	✓	25%	10%	20%	10%	20%	8%
New Address	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Customer/New Plan	✓	✓	✓	✓		✓	✓	✓	✓	✓
New Graduate	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
New Vehicle	30%	✓	✓	15%	✓			40%	10%	12%
Newly Licensed	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Newlyweds	✓	✓	✓	✓	5%	✓	✓	✓	✓	✓
Non-Smoker/Non-Drinker	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occasional Operator	✓	✓	✓	✓	✓	✓	✓	✓	✓
Occupation		✓			10%	15%	✓	✓		✓
On-Time Payments	5%	✓		✓	✓	✓	✓	✓	15%	✓
Online Shopper	✓	✓	✓	✓	✓	✓	7%	✓	✓	✓
Paperless Documents	10%	✓		✓	✓	5%	$50	✓	✓	✓
Paperless/Auto Billing	5%	✓		✓	✓	$30	✓	$20	3%	3%
Passive Restraint	30%	30%		40%		20%	✓	40%
Recent Retirees	✓	✓	✓	✓	4%	✓	✓	✓	✓	✓
Renter	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Roadside Assistance	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Safe Driver	45%	✓		15%	✓	35%	31%	15%	23%	12%
Seat Belt Use	✓	✓	✓	15%	✓	✓		✓	✓	✓
Senior Driver	10%	✓		✓	✓	✓	✓	✓	✓
Stable Residence	✓	✓	✓	✓	✓		✓	✓	✓	✓
Students & Alumni	✓	✓	✓		10%	7%		✓	✓	✓
Switching Provider	✓			✓	10%	✓		✓	✓	✓
Utility Vehicle	15%	✓	✓		✓	✓		✓	✓	✓
Vehicle Recovery	10%	✓	✓	15%	35%	25%	✓	5%
VIN Etching	✓	✓	✓	✓	5%		✓	✓
Volunteer	✓	✓	✓	✓	✓	✓	✓	✓	✓	✓
Young Driver	✓	✓	✓	✓		✓	✓	✓	✓	$75

Read more:

• Renter Discount: How Much Can You Save?
• Utility Vehicle Discount: How Much Can You Save?
• Roadside Assistance Discounts: How Much Can You Save?
• Early-Signing Discount: How Much Can You Save?

Coverage and discounts vary based on where you live. You can find out which local companies are offering cheap auto insurance rates after an accident to drivers in your area by comparison shopping online for quotes.

How can drivers get insurance quotes online?

You can use a free quote tool like the one below and get three to five free quotes sent directly to your home computer or smartphone. When you find rates that fit your budget, research insurance company reviews to make sure it’s the right policy for you.

Remember to be honest when filling out auto insurance quotes online. You must answer all questions about accidents, prior claims, and traffic tickets to get the most accurate quotes possible.

Failing to admit to a recent accident when seeking insurance quotes is a form of fraud and can result in some severe consequences.

Is it a bad idea to change auto insurance after an accident?

Getting into an auto accident can have a serious impact on your auto insurance rates. Before you switch companies, you should review your current policy and see how the free quotes you get online compare to them.

If your current insurance company offers accident forgiveness, you may not see any change to your rates at all.

If you’re still asking yourself, “Is it bad to change car insurance after an accident?”, enter your ZIP code below to compare free quotes from insurance companies near you.