If you’ve filed an insurance claim, especially after a car accident or property damage, you might be wondering: Can I switch insurance companies now, or do I have to wait until the claim is resolved?
The short answer is yes. You can switch insurance companies while a claim is still open in South Dakota. However, before you cancel your current policy and switch, there are a few important considerations to keep in mind regarding how it works and the risks to avoid.
Your Old Policy Covers the Claim, Even After You Switch
Here’s the key point. The insurance company that was covering you at the time of the accident or incident remains responsible for handling the claim, even if you change providers later.
Let’s say you were rear-ended in March while insured with Company A. In April, you decide to switch to Company B for better rates. That’s fine. Company A is still responsible for your March accident, even if you no longer have an active policy with them.
This applies to most types of claims, including:
- Auto accidents
- Homeowners’ claims
- Liability claims, like a guest injury at your home
The reason is simple. Insurance coverage is generally based on the date of loss, not whether you’re still a customer when the claim is settled.
When Switching Can Get Complicated
While switching insurers doesn’t cancel or void your current claim, it may complicate the process.
Communication May Slow Down
Once you’re no longer a policyholder, your old insurance company might be less responsive. You’re no longer their customer, and that can impact how quickly they respond to your calls or move things along.
You’ll Need to Stay Organized
Keep copies of all documents, claim numbers, and correspondence from the original insurer. You may need to advocate for yourself if the process drags out.
Open Claims Could Affect Your New Premiums
When you apply for a new policy, the new company will likely check your claims history. Even if the current claim isn’t your fault, it can still impact your rates or eligibility, especially for auto insurance.
Being upfront with your new insurer is important. Hiding an open claim won’t help, and it may even lead to a denial of coverage down the road.
Things to Avoid When Switching Mid-Claim
If you’re considering switching while a claim is still open, avoid these common mistakes:
- Letting your old policy lapse before the new one starts. Even a single day without coverage could leave you exposed, and it may be illegal in some cases, like auto insurance
- Assuming your new insurer will take over the claim. They won’t. No matter how helpful they are, they aren’t financially responsible for a claim that happened before you signed on
- Failing to follow up on your old claim. It’s up to you to keep it moving. If you go silent, so might your insurer
Why Some People Switch During a Claim
You’re not alone if you’re considering a change during an open claim. Common reasons include:
- Frustration with the claims process
- Rising premiums after filing
- Better offers from competitors
- Poor customer service
Just be sure the benefits outweigh the hassle, and that you’re making the switch for the right reasons, not just out of frustration.
Need Help Navigating an Insurance Claim?
Filing a claim is stressful enough. Trying to deal with unresponsive insurance adjusters, low settlement offers, or confusing policy language can exacerbate the situation. That’s where we come in.
At Abourezk Law Firm, we help individuals stand up to insurance companies and fight for the compensation they deserve. Whether you’re struggling with a delayed claim, an unfair payout, or bad faith tactics, we’re ready to help.
Thinking about switching insurance while a claim is still open? Call Abourezk Law Firm today for clear answers and trusted guidance.