Can You Switch Car Insurance With an Open Claim?

More than one in four auto insurance shoppers reports at least one violation on their record.¹ Fortunately, having an open claim won’t prevent you from switching insurers. 

The insurance company that was in effect on the date of the loss is responsible for handling your claim, even if you switch to a different insurer later on. However, because both open and closed claims stay on your record, it’s important to disclose the claim to potential new insurers to get an accurate rate.

Having an open claim won’t prohibit you from switching your car insurance. The most important thing is to let the new insurance company know that you have a pending claim with your prior insurance company.

Here’s how to switch car insurance with an open claim:

1. Include your claim information when shopping for quotes, including the claim number, date of loss, and the adjuster's contact information.

2. Apply for new insurance. 

3. Wait until underwriting approves your application and finalizes your rate.

4. Notify lenders or leaseholders of the change in insurance.

5. Align your cancellation date with the effective date of your new policy.

Once your new policy has been issued, the old insurance company will continue handling your claim. Always cooperate with the adjuster handling your claim.²

Insurance claims can take from a few days to many months to resolve. It’s also possible for a closed claim to reopen later as more information becomes available. 

Be aware that while you can purchase higher limits for your new policy, the new company won’t retroactively cover damages from a pending claim with another company.

It might be easier to switch car insurance companies after a claim is closed because an open claim can make it a bit more difficult to switch. 

Some insurance companies will give you a quote while you have an open claim, while others will decline your quote or ask for more information. Sometimes, an insurance company may only reconsider your application once your claim has been finalized. 

Insurance companies consider the following factors in deciding whether to insure your cars with an open claim:

• Recency

• Undetermined fault

• Significant injuries or damages

• Multiple vehicles or parties

Acknowledging your claim upfront and getting multiple quotes gives you the best shot at a new policy. Luva lets you compare quotes from multiple carriers side by side, so you can see which options fit your new situation while your claim is still open.

Recent tickets and accidents are a common reason for drivers to start shopping for a better rate. Our data shows that drivers who shop after one to two years have the highest rate of driving violations among all shoppers.¹

If you are shopping for new insurance, potential auto insurers will appreciate your honesty and transparency regarding your driving record. 

These tips will help you navigate shopping for car insurance with an open claim:

• Cooperate with your adjuster on an open claim.

• Get multiple car insurance comparisons.

• Be honest about your claims and violations.

• Keep your insurance continually in force.

Your adjuster should contact you once your claim is resolved, but it’s a good idea to stay up to date on its status.

You can also verify your driving record by requesting a Comprehensive Loss Underwriting Exchange (C.L.U.E.) report at LexisNexis.³

While you are free to shop for a different car insurance policy at any time, it may be better to wait until your claim closes. More companies may be willing to give you quotes if they can see that all prior claims are closed. 

If you have an open claim, even if the property damage is minimal and there are no injuries, a new insurance company might give it time to see if the claim becomes more serious as details emerge.

Whenever you decide to shop, Luva makes it easy to compare quotes to see which options fit your situation.

Having an open claim could increase your auto insurance rate, or it could have no effect at all. 

Your rate won’t go up solely because you have an open claim, but it could go up for other reasons. Insurance companies view each claim based on its payout, age, percentage of fault, complexity, and other factors. 

For example, a claim involving hitting an animal may not affect your rate at all, while an at-fault accident with property damage and bodily injury would likely increase your rate.