There are many instances in which you may want to change your car insurance policy. Perhaps you bought a new car to insure or your teenage driver must be added to your policy. Maybe you simply decide that you want to lower the amount of coverage on your vehicle to save money. Is it possible to change your car insurance policy whenever this happens?
In short, yes. You can change your car insurance policy whenever the need arises, and these changes will be implemented immediately. There are, of course, exceptions and rules, however.
Say you have a wreck and realize that you don’t have enough collision coverage to pay for the damages. Can you change your coverage higher to pay for the damages? Unfortunately, it doesn’t work that way. The coverage you have at the time of the accident is the coverage that will be considered when you file a claim. The same goes for if you are in the middle of a lawsuit. You may change your insurance policy, but it will not affect the current lawsuit or the compensation you will receive for the previous accident. Be careful changing your car insurance after an accident, however. Any traffic violation or car accident is likely to raise your rates and raising your coverage right after can lead to you paying hundreds more than you were originally paying. An accident causes car insurance rates to rise 31% on average, which is around $450 a year. Other violations such as DUIs can cause your insurance to rise 80% or higher.
You can even switch to a different insurance agency after an accident, even if the claim is open. This can be difficult, as you will have to juggle two insurance agencies at once, and you will still owe to your original insurance agency.
When to File an Insurance Claim
Before filing a claim with your insurance agency, it’s recommended that you have the damages assessed. If the cost to fix the damages is less than the cost of your deductible, it may be worth simply paying for the damages out of pocket rather than filing an insurance claim. Before an accident ever occurs, make sure to go over your car auto policy with an insurance agent to be sure you have enough insurance to cover you in case of an accident.
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