After you get into an auto accident, you will probably have many questions. One of them may be whether you can cancel auto insurance after an accident or not. The short answer is that you can, but we will go into more detail about how and when you can do so in this article.
If you want to switch auto insurance providers instead of just canceling, take advantage of our team’s research. We have reviewed the best car insurance companies, then used our careful evaluation of every provider to determine which are the best insurance companies.
Can I Cancel My Car Insurance After an Accident?
The short answer is yes, you can cancel your car insurance after an accident. You can legally cancel your auto insurance at any time, including after an accident.
You don’t have to worry about your claim being covered if you cancel insurance. It will be covered based on your policy as long as you still had coverage the day that the accident occurred.
Even after your cancelation, your previous insurance company will continue to handle the rest of the claim. Your claim will not be denied solely because you canceled your policy: it will still be approved and handled as normal.
When Should I Cancel My Car Insurance After an Accident?
As mentioned, you can cancel your car insurance at any time. There are two main reasons that you would cancel your insurance policy after an accident.
Remember that as long as you have a car that you drive, you need to have an insurance policy. All states have minimum insurance requirements you must meet. This means that if you choose to cancel your policy and still drive, you will need to make sure you get a new policy from another provider.
Canceling Because of Poor Customer Service
One of the most common reasons that you may want to cancel insurance after an accident is if you had a poor experience with customer service at your current insurer. Just because insurance is required doesn’t mean you need to stay with the same provider.
When you decide to switch, you will then have the freedom to shop around and compare ratings and prices to find a better insurance provider. In this case, switching insurance companies can help you avoid future hassles.
As mentioned, you need to always have coverage on your car if you still own and drive it. This requires careful planning as to when you stop the current policy and start the new one. You will need to overlap the plans by at least a day.
Do not just assume that no one will notice if you have a small gap in coverage while switching providers. Even if no one notices initially, future auto insurance providers will look at your insurance history before offering you a rate. Any gap in coverage, no matter how small, will raise your insurance premiums.
Canceling Because Your Car Is Totaled
The other situation where you may choose to cancel your insurance policy after an accident is if your car is totaled. In this case, there is no point in paying for insurance coverage on a vehicle you can’t drive and will not own in the near future.
However, you cannot instantly cancel the insurance on a car the adjuster declares totaled. You have to wait until you and the insurance company or insurance agent agree on a settlement amount and you have signed the title over to them. This will help you avoid any gap in coverage.
Will My Car Insurance Be Canceled After an Accident?
Because nearly every state requires you to have car insurance, there are also regulations as to when insurance providers can cancel your coverage.
If your insurance policy has been in force for at least 60 days, there are only three situations when your insurance company can cancel the policy. These include:
- If your driver’s license is suspended or revoked
- You misrepresented yourself on the application or committed fraud
- You don’t pay the premium, which is officially called “nonpayment”
In some states, if you started coverage within the last 60 days, you do not have this protection. The company may be free to cancel your policy even for a minor accident in this time period.
However, your insurance company is free to not renew your policy when it is up for renewal, which is different from outright cancellation. It can do so for one of several reasons and your actions will not necessarily influence this.
However, your actions can cause a non-renewal. Before a non-renewal, insurance companies must notify you in advance and tell you why they are taking this action. The exact requirements for notice vary by state in the insurance industry.
Some companies may choose not to renew your policy if they feel you represent a higher risk due to an accident.
Our Recommendations for Auto Insurance
Whether you want to switch insurance companies after an accident or are just comparison shopping, we suggest GEICO, USAA or Progressive.
GEICO: Best Overall
GEICO is our top overall choice with a rating of 9.1 out of 10.0 overall. This includes a 9.8 for industry reputation, a 9.4 for cost, a 9.0 for customer experience, and an 8.5 for coverage. GEICO also stands out with high average discounts for air bags, anti-theft systems and for being a good driver.
USAA: Best Military Provider
USAA earned a 9.6 overall. This includes a 9.3 for customer experience and industry reputation, a 10.0 for cost, and a 9.5 for coverage. USAA also offers numerous discounts, including for families, length of membership, multiple vehicles, safe driving and defensive driving.
Progressive: Best for High-Risk Drivers
Progressive also earned an 9.1 overall. This includes a 9.1 for industry reputation, a 9.0 for coverage, a 9.3 for cost, and an 8.9 for customer experience. Some of the useful discounts from Progressive include discounts for getting an online quote and for having continuous insurance.
FAQ: Canceling Car Insurance After an Accident
Can I drop my car insurance during a claim?
Yes, you can drop your car insurance policy during a claim, and your insurance company will continue to process your claim.
Do you have to tell your insurance if you crash?
Yes, you do have to tell your insurance if you crash, even if you don’t plan on filing a claim. If you don’t tell your insurance company about a crash, this can count as misrepresentation or fraud. Your insurance company can cancel your auto insurance policy for fraud or misrepresentation.
Can I cancel a car insurance claim?
Yes, you can cancel a car insurance claim. However, if you start a claim, it will always appear on your driving record and claim history, even if you cancel it.
Do you still pay insurance on a totaled car?
You only have to pay insurance on a totaled car until you and your insurance provider agree on the settlement and you sign the title over to them.
Methodology
The Detroit Bureau collects data from every major car insurance provider to formulate rankings of the best insurers. Our in-depth rating system takes into account market share, coverage, auto insurance rate estimates generated by Quadrant Information Services, customer satisfaction and ratings from industry experts. Each insurer is given a weighted score in four categories, as well as an overall score out of 10.0.
We recommend auto insurance companies based on these rankings, but we also encourage you to perform your own research and compare quotes to find the best coverage.
