Can you cancel auto insurance after an accident?
After you have been in a car accident, you will probably have many questions. One of them may be whether or not you can cancel auto insurance after an accident. The short answer is you can, but we’ll go into more detail in this article to find out how and when you can do it.
If you want to change auto insurance providers instead of just terminating, take advantage of our team’s research. We reviewed the best auto insurance companies, then used our careful assessment of each provider to determine which insurance companies are the best.
Can I cancel my auto insurance after an accident?
The short answer is yes, you can cancel your auto 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 loss coverage if you cancel your insurance. It will be covered under your policy as long as you were still covered on the day the accident occurred.
Even after your cancellation, your old insurance company will continue to handle the rest of the claim. Your claim will not be denied just because you canceled your policy – it will still be approved and processed as normal.
When should I cancel my auto insurance after an accident?
As mentioned, you can cancel your auto insurance at any time. There are two main reasons why you would cancel your insurance policy after an accident.
Remember that as long as you have a car that you drive, you must have an insurance policy. All states have minimum insurance requirements that you must meet. This means that if you choose to cancel your policy and are still driving, you will need to make sure you get a new policy from another provider.
Cancellation due to poor customer service
One of the most common reasons you may want to cancel insurance after an accident is if you have had a bad experience with customer service from your current insurer. Just because insurance is mandatory doesn’t mean you have to stay with the same provider.
When you decide to change, then you will have the freedom to shop around and compare ratings and prices to find a better insurance provider. In this case, changing your insurance company can help you avoid future hassles.
As mentioned, you should always have coverage on your car if you own it and still drive it. It requires careful planning as to when you stop the current strategy and start the new one. You will need to overlap the plans for at least one day.
Don’t assume that no one will notice if you have a small gap in coverage when you switch providers. Even if no one notices it initially, future auto insurers will examine your insurance history before offering you a rate. Any gap in coverage, however small, will increase your insurance premiums.
Cancellation because your car is totaled
The other situation where you can 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 that you cannot drive and that you will not own in the near future.
However, you cannot instantly cancel the insurance of a car that the expert declares totaled. You have to wait until you and the insurance company or agent agree on a settlement amount and surrender title to them. This will help you avoid any gaps in the coverage.
Will my auto insurance be terminated after an accident?
Since almost all states require you to have auto insurance, there are also regulations outlining when insurers can cancel your coverage.
If your insurance policy has been in force for at least 60 days, there are only three situations where your insurance company can cancel the policy. These include:
- If your driver’s license is suspended or revoked
- You made a false statement on the request or committed fraud
- You don’t pay the premium, which is officially called “non-payment”
In some states, if you started coverage within the past 60 days, you don’t have this coverage. The company may be free to cancel your policy even for a minor accident during this period.
However, your insurance company is free not to renew your policy while it is being renewed, which is different from outright termination. There are a number of reasons he can do this, and your actions won’t necessarily influence that.
However, your actions may result in non-renewal. Before a non-renewal, insurance companies should notify you in advance and explain why they are taking this action. The exact notice requirements vary from state to state in the insurance industry.
Some companies may choose not to renew your policy if they believe you are at a higher risk due to an accident.
Our recommendations for auto insurance
Whether you want to switch insurance companies after an accident or just make comparisons, we suggest GEICO, USAA or Progressive.
GEICO: better overall
GEICO is our top overall pick with an overall rating of 9.1 out of 10.0. This includes a 9.5 for industry reputation and a 9.0 for cost, customer experience, and coverage. GEICO also stands out with high average discounts for airbags, anti-theft systems and for being a good driver.
USAA: Best military supplier
USAA obtained an overall rating of 8.9. This includes a 9.0 for customer experience, costs and industry reputation, and an 8.5 for coverage. USAA also offers many discounts, including for families, membership length, multiple vehicles, safe driving, and defensive driving.
Progressive: Ideal for high risk drivers
Progressive also achieved an overall rating of 8.9. This includes a 9.5 for industry reputation, a 9.0 for coverage, and an 8.5 for costs and customer experience. Some of Progressive’s useful discounts include discounts for getting an online quote and for continued assurance.
FAQ: Canceling auto insurance after an accident
Can I abandon my auto insurance in the event of a loss?
Yes, you can abandon your auto insurance policy in the event of a loss, and your insurance company will continue to process your loss.
Should I notify my insurance in the event of a fall?
Yes, you must let your insurance know if you break down, even if you don’t plan to file a claim. Failure to notify your insurance company of an accident could be considered a misrepresentation or fraud. Your insurance company can terminate your auto insurance policy for fraud or misrepresentation.
Can I cancel an auto insurance claim?
Yes, you can cancel an auto insurance claim. However, if you make a claim, it will still 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 for insurance on a totaled car until you and your insurance provider agree on the settlement and sign the title to them.
The Detroit Bureau collects data from each major auto 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 assigned 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 do your own research and compare quotes to find the best coverage.