Wondering if changing your insurance policy midway is possible? Discovering a better deal is entirely possible even after you have been with your insurance provider for some time.
Can You Change Your Insurance Policy?
Yes, you can switch companies whenever you wish to. However, changing your policy midway might incur penalties for terminating the insurance contract before its term ends.
In Ontario, you can change or cancel your car insurance policy at any time. If you cancel before the policy expires, the insurer will usually calculate the premium you owe on a short-rate basis. This calculation includes the insurer’s handling costs. There may also be a minimum premium shown on your Certificate of Automobile Insurance that will not be refunded.
Ask your insurer for the cancellation amount before switching.
Why Change Your Insurance Policy?
There can be several reasons why you would want to pursue this, ranging from discovering coverage gaps in your insurance to shopping around and finding a better deal.
The company that was the best for you a few years ago may not be the best for you now. You may also have faced bad customer service or found a more alluring perk with another insurance provider.
Common reasons include:
- Price increases: Rates rising without a clear change in your driving record.
- Service issues: Poor claims handling or customer support.
- Coverage needs: Looking for coverage your existing insurer does not offer.
- Waiver of depreciation: Seeking an OPCF 43 endorsement for a new vehicle.
How Often Can You Change Your Insurance Policy?
You can change your insurance policy as often as you want. But changing your policy midway might incur charges. You will also need to ensure that you do not have a gap in coverage.
Discuss this with your insurance provider when you intend to cancel their service.
Should You Switch Insurance Providers?
Like all good answers, this depends on several factors.
Some instances when you may want to check with your current provider or look for a new one include:
- when you add or remove a driver, especially a teenager;
- before purchasing a vehicle;
- when you change provinces;
- when changing vehicle ownership;
- approximately 30 days before your current policy renews; or
- if the value of your vehicle has dropped and you are considering removing collision coverage.
Compare the same limits, deductibles, endorsements and payment terms. A lower premium may come with less coverage or a higher deductible.
Changing your insurance provider after an at-fault accident might not be a good option, especially if your current provider has accident forgiveness coverage. Accident forgiveness generally does not transfer to a new insurer. Ask how the accident will affect the new quote before cancelling your existing policy.
Can You Switch While You Have an Open Claim?
Yes, you can switch insurance companies even when you have an open claim with your current one. Changing insurers does not transfer the existing claim to the new company.
The original insurer continues handling the covered claim because the incident happened while its policy was in force. Keep communicating with its adjuster until the claim is closed.
Your new insurer covers incidents occurring after the new policy takes effect, subject to its terms.
Next Steps
Ultimately, if you have made the decision to switch, make sure that you don’t have a gap in your coverage.
You may be entitled to a refund for the unused portion of your policy. Ask the insurer how the refund and cancellation charge will be calculated.
Confirm that the new policy is active before cancelling the old one. If your vehicle is financed or leased, notify the lender or leasing company and provide updated proof of insurance.
In conclusion, if you have decided to make the switch, make sure you understand exactly how the new insurance is different and how that affects you. Even if you’re not in the market for switching immediately, it doesn’t hurt to shop around.