Yes, you can change your car insurance company even after an accident. There is no law that stops you from switching insurers after a claim. Car insurance companies in the United States must allow you to cancel a policy at any time, even if you recently filed a claim or are still waiting for the claim to settle. You can also buy a new policy at any time.
However, switching after an accident comes with important details you must understand. While it is legal, insurance companies will still consider your recent accident when calculating your new rate. A recent claim may raise your premium because you now appear to be a higher risk. Some companies may offer lower increases than others, which is why many drivers shop around immediately after a crash.
If your accident was minor, your premium increase may be small. If the accident involved injuries, major damage, DUI, or fault, the increase may be higher. This makes it even more important to compare quotes before renewing or switching. Many drivers switch after an accident because they feel unhappy with customer service, slow claim handling, or a sudden rate increase from their current insurer.
Can You Switch Car Insurance After an Accident?
Yes. You are allowed to switch car insurance at any time, even if:
- You recently reported an accident
- Your claim is still open
- Your claim was denied
- Your damage repair is not finished
- You were at fault
Insurance companies cannot stop you from switching. Your old policy remains responsible for any accident that happened while it was active. The new insurance company will only cover future accidents, not past ones.
How Switching Insurance Works After an Accident?
You can follow these simple steps to switch car insurance after an accident:
- Get quotes from other insurance companies
- Choose a policy that fits your budget and coverage needs
- Set an effective start date for the new policy
- Do not cancel your old policy until the new one is active
- Inform your lender if you have a financed vehicle
- Pay any unpaid balance on your old policy if required
When the new policy begins, your old company still handles the claim that happened under their coverage period. You do not need the old policy to stay active for them to finish your claim.
Does Switching Affect Your Current Claim?
No. Your old insurer must continue handling your claim. Even if you cancel your policy right after the accident, the company is still responsible for:
- Repair payments
- Medical payments
- Liability claims
- Total loss decisions
- Rental car coverage (if included in your policy)
Your claim does not get canceled because you changed companies. The coverage that existed at the moment of the accident stays in force for that event.
Will Your New Insurance Company See Your Accident?
Yes. All insurance companies in the United States access claims history through a national database called CLUE (Comprehensive Loss Underwriting Exchange). Claims remain in this system for up to seven years.
This means:
- You cannot hide the accident
- You cannot avoid a rate increase by switching
- Your new insurer will price your policy based on your claim history
However, different companies raise rates differently. Some may increase premiums less than others. This is one reason many drivers switch after an accident.
How Much Will Rates Increase After an Accident?
Your rate increase depends on several factors:
- Were you at fault?
- Was anyone injured?
- How expensive was the damage?
- Do you have accident forgiveness?
- Was the accident recent?
Below is an estimate of typical premium increases.
Average Rate Increase After an Accident
| Accident Type | Average Premium Increase |
| Minor accident (under 2,000 dollars damage) | 15 to 25 percent |
| Moderate accident (over 2,000 dollars damage) | 25 to 40 percent |
| Major accident with injuries | 40 to 65 percent |
| DUI-related accident | 75 percent or more |
Accident forgiveness can reduce or remove the increase if your insurer offers it and you qualify.
When Switching Insurance After an Accident Is a Good Idea?
Switching can benefit you if:
1. Your rates increased too much
After an accident, some insurers increase rates sharply. Shopping around may save you hundreds of dollars per year.
2. You are unhappy with the claim process
Slow claim handling, poor communication, or delays can motivate drivers to change insurers.
3. Your life situation changed
Moving to another state, buying a new car, or improving your credit score may qualify you for lower rates elsewhere.
4. You found better discounts
You may qualify for low mileage, safe driver, telematics, or bundling discounts with another company.
5. Your insurer does not offer accident forgiveness
Switching to a company that provides this benefit can help keep your future rates stable.
When You Should Not Switch After an Accident?
There are a few situations where switching is not the best choice:
1. You expect another claim soon
Multiple claims within a short period may cause high premiums from any company.
2. Your old policy has special benefits
Some insurers offer loyalty discounts, vanishing deductibles, or accident forgiveness that you would lose by switching.
3. You are in the middle of a complicated claim
If your claim involves medical treatment, injuries, or legal disputes, you may want to keep your current insurer until everything is settled.
Does Switching Insurance Save Money After an Accident?
Often yes. Many insurers weigh risk differently. A company that raises your premium by 40 percent may be replaced by another that only raises it by 20 percent.
Example Savings After Switching
| Situation | Old Rate | New Rate | Annual Savings |
| Minor accident | 1,800 dollars | 1,500 dollars | 300 dollars |
| Moderate accident | 2,200 dollars | 1,700 dollars | 500 dollars |
| Major accident | 3,200 dollars | 2,400 dollars | 800 dollars |
Switching is most helpful for drivers with clean histories before a single incident.
Can You Switch Insurance While a Claim Is Still Open?
Yes. Your old insurer continues handling the claim and pays all required benefits. Companies cannot force you to stay with them until your claim ends.
Important notes:
- Your new insurer does not pay for past accidents
- Your new coverage only starts from the activation date
- Your old insurer must still provide customer service for the old claim
You may switch even if repairs, medical appointments, or payments are still pending.
Does Switching Affect Liability or Fault Determination?
No. Fault is determined based on the accident details, police report, and claim investigation. Changing insurers does not change fault decisions.
Your new insurer is not involved in fault or settlement for the previous accident.
What Happens if You Switch After a DUI Accident?
You can still switch, but expect:
- Much higher rates
- Limited insurer options
- Required SR-22 in some states
- Very strict underwriting rules
Some carriers specialize in high-risk drivers, so switching may still reduce your cost.
How to Switch Car Insurance After an Accident (Step-by-Step Guide)
Step 1: Review your current policy
Check cancellation fees, discounts, and claim details.
Step 2: Compare quotes
Use at least three or four insurers for better results.
Step 3: Choose your coverage
Make sure you keep full coverage if your car is financed.
Step 4: Start your new policy
Set the start date before canceling your old policy.
Step 5: Cancel your old policy
Ask for written confirmation of cancellation.
Step 6: Update your lender
If you finance your car, send the lender your new insurance details.
How Long After an Accident Should You Wait to Switch?
You can switch the same day if you want. But many experts recommend waiting until:
- Your claim is opened
- The initial inspection is completed
- You receive your rental car (if covered)
This way, you avoid confusion during the early claim stages.
Will Your New Insurer Cancel You if They Learn About Your Accident Later?
No. They cannot cancel your policy simply because you had a past accident. They already checked your CLUE report when you applied.
However, they may increase your rate at renewal if the accident happened recently.
Switching vs Not Switching After an Accident
| Action | Benefits | Drawbacks |
| Switching | Lower rates, better service, new discounts | Higher risk class, new underwriting |
| Not switching | Keep loyalty benefits, stable claim handling | Higher renewal rate, fewer options |
Frequently Asked Questions (FAQs)
Yes. You can cancel at any time. Your insurer must still process the accident claim.
Yes. Your previous insurer handles the claim. The new insurer only covers future accidents.
Rates increase because of the accident, not because you switched.
Yes. Most companies accept drivers with accidents, but rates vary.
Only if your new company offers accident forgiveness and you meet their rules.
Yes. Even at-fault drivers can switch.
You cannot avoid the increase entirely, but you may reduce it by switching to a cheaper insurer.
Conclusion
Switching car insurance after an accident is allowed, and it can even help you save money if your current insurer raises your rates. You must compare quotes, keep your old policy active until the new one starts, and understand how your accident affects future premiums. With careful planning and smart research, you can protect yourself at a fair price and stay fully insured. For drivers looking for simple comparisons and better coverage options, Alias Insurance provides easy tools to help you make confident choices.
