Considering switching insurance before filing a claim?
Recently, something flew off my trailer and damaged the hood of the vehicle behind me. I have full coverage on my car with a $1,000 deductible for collision, which I assume this incident would fall under. I suggested handling the situation privately, but I’m not optimistic they will agree, and I feel like I’m at their mercy.
My auto policy expires in May. Is it possible for me to find a new insurance company now and switch before the claim is processed? My hope would be to avoid a premium increase by locking in a new rate for a year, while covering the claim through my current insurer.
I’d appreciate any thoughts or advice! With one child driver and multiple vehicles, I’m really anxious about a potential claim and the possibility of rising rates!
It’s understandable to be concerned about potential rate increases after a claim, especially with a new driver in the household. However, switching insurance companies just to avoid a claim could lead to complications—here are a few points to consider:
Disclosure Obligations: When applying for a new insurance policy, you may be required to disclose any incidents that have occurred or are pending, including the situation you’re in. If you switch and the new insurer finds out about the incident, it could lead to complications, including denial of coverage.
Timing of Claims: Even if you switch before reporting the claim, if the accident occurred while you were still insured with your current provider, they are likely still responsible for covering it. If you have an active policy with your current insurance when the claim is made, it should be processed under that policy.
Impact of the Claim: Expect the other party to want to go through insurance if they incur significant damages. Even if you attempt to settle outside of insurance, they may still choose to file a claim. This could potentially impact your existing policy if it results in a claim.
Policy Renewal Considerations: If you’re concerned about rates going up, consider shopping around for new quotes now rather than waiting until after the renewal. Compare rates from different insurers and ask about their claims history policies.
Talk to Your Insurer: It might be helpful to have a conversation with your current insurer about your situation. They may offer insight or options for minimizing the impact on your rates.
Increase Your Deductible: If you’re worried about higher premiums, consider increasing your deductible. This could lower your premium, but remember it also means you’ll pay more out of pocket if a claim does arise.
Ultimately, it might be best to handle the claim through your current insurer and then evaluate your options during your next renewal. This way, you can avoid any potential issues that might arise from switching companies during a pending claim.