Switching Insurance Companies When You Have an Open Claim

Switching insurance companies when you have an open claim is possible and doesn’t have to be all that complicated.

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Chris Tepedino is a feature writer that has written extensively about home, life, and car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and C...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent Laura Walker

UPDATED: May 17, 2022

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The Rundown

  • You can change insurance companies if you have an open claim
  • Switching insurance companies may cause you to have significantly higher premiums, depending on the nature of your claim
  • Do not cancel your old coverage before your new policy begins

If you have recently filed a claim with your insurance company, you may have found that the company did not offer you the customer service and assistance that you deserve. You may decide that it’s time to shop around for a new insurance company for many reasons.

You can switch insurance companies when you have an open claim, but there are some things you will want to look out for to ensure you don’t have any regrets about making the switch. 

Can I switch insurance companies with an open claim?

You are free to switch insurance companies at any time, including when you have an open claim. Regardless of your reason for switching, you are not under contract with your insurance company. Even if you have filed an insurance claim and are waiting to hear the final results, you can start your research to find a new insurance company you would prefer.

When you switch insurance companies, your open claim will not transfer. So even after you change, you will have to stay in touch with your previous provider for claim updates, coverage payouts, and any other claim-related information.

Before you decide to change insurance companies, it’s a good idea to shop around and compare quotes for coverage. But unfortunately, many people find that shopping for insurance coverage with an open claim automatically makes their insurance rates higher. 

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Can I renew my insurance with an open claim?

You should be able to renew your insurance coverage with your current provider if you have an open claim. The only time continuing your coverage might be a problem is if your current insurance provider decides to cancel your coverage because of your claim. 

Don’t be surprised if your rates increase when you renew your policy. Most insurance companies will automatically charge policyholders higher rates if they file a claim, regardless of the nature of the claim itself. 

If you can get cheaper rates with another company, you may want to consider switching. But remember that you will still have to deal with your current provider regarding any open claim details. 

When should I avoid switching insurance companies?

It’s never a bad idea to shop around for insurance coverage, but there are a few times when it makes more sense to stay with your current provider than to try and find a different insurance company.

If you have recently been in a car accident or received a traffic ticket, you may find that your quotes with other car insurance companies are much higher than your current rates.In addition, if you are not up for a policy renewal, your insurance company may let you keep your current rates for several months with an open claim.

The same situation applies to other forms of insurance as well. For example, if you’ve recently filed a claim with your homeowners insurance company or health insurance provider, your rates with other companies might be higher than if you stayed with your current insurance provider.

You may also want to reconsider switching insurance companies with an open claim if you currently have any of the following: 

  • Discount for loyalty
  • Discount for bundling policies
  • Accident forgiveness 

All of these discount options could save you a lot of money over the life of your policy, so you should consider them before making a switch.

Switching Insurance with an Open Claim: The Bottom Line

If you have an open claim with your current insurance company, it’s possible to switch to a new provider. But you will want to take a few things into account before making a final decision.

If your open claim is new, or if you benefit from specific discounts on coverage, it may cost you more money to switch providers than to stay with the company you have. Additionally, you will still have to keep in touch with your current provider regarding anything claim-related.

Take your time when deciding on a new insurance provider. Compare quotes from multiple companies to find which provider will offer the coverage you want at the lowest price. And never cancel coverage with your previous provider before your new insurance policy kicks in.

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