Can You Switch Car Insurance After an Accident in Florida?
This comprehensive guide explains everything you need to know about changing your car insurance after an accident in Florida, including how it affects your open claims, potential financial implications, and the steps to ensure a smooth transition between providers.
Understanding Your Rights to Switch Car Insurance in Florida
Florida's insurance landscape gives you certain rights when it comes to switching car insurance after accident. Understanding these rights helps you make informed decisions about your coverage, especially after experiencing an accident.
Florida's insurance laws on policy changes
In Florida, you have the absolute right to change your auto insurance provider whenever you want. This includes situations when you've been in an accident or have an ongoing claim. Florida's insurance laws require companies to provide clear notifications about policy changes, cancelations, or non-renewals.
Florida operates under a no-fault insurance system, requiring drivers to carry Personal Injury Protection (PIP) of $10,000. Nevertheless, proposed legislation aims to replace this with a fault-based system requiring at least $25,000 in bodily injury coverage per person and $50,000 per accident.
Additionally, Florida law mandates maintaining continuous insurance coverage throughout your vehicle's registration period. Failure to maintain required coverage may result in driver's license suspension and reinstatement fees up to $500.
Can you legally switch with an open claim?
Yes, you can legally change your car insurance company with an open claim. Despite what some might assume, having an open claim doesn't prevent you from canceling or switching your auto insurance policy. Furthermore, many drivers consider changing insurers after an accident, primarily seeking better rates or coverage options.
Given that switching is your right, there are no added fees, penalties, or other repercussions simply for changing companies. Conversely, some insurers might charge cancelation fees if you cancel mid-policy term.
Your previous insurer's obligations after switching
When you switch insurers with an open claim, your previous insurance company remains responsible for handling that claim until resolution. This obligation exists because your policy was active when the accident occurred.
Insurance companies also have an affirmative obligation to notify you of any changes in your coverage. Above all, insurers must provide this notification clearly—not buried within lengthy policy documents. If they fail to sufficiently alert you to changed terms upon renewal, they remain bound by the earlier coverage terms.
Remember that switching could potentially delay your claim processing since you'll need to stay in contact with your former insurer while also establishing a relationship with your new one. Rather than assuming everything will transfer automatically, maintain open communication with both companies during the transition.
The Process of Changing Car Insurance After an Accident
Switching car insurance after an accident requires careful planning to ensure you maintain adequate coverage. Taking methodical steps now can save you headaches later.
Documenting your current coverage and claim status
Before making any changes, gather essential information about your current policy. Record your policy number, coverage limits, claim details, and your adjuster's contact information. Request a copy of your declarations page and claim documentation—these will be crucial when comparing new policies and ensuring your existing claim continues smoothly.
Researching new insurance providers
Start investigating companies that serve Florida drivers with accident histories. Insurance costs vary dramatically between providers—after an accident, some Florida drivers pay as low as $2,448 annually with State Farm or as high as $6,295 with Allstate. Look beyond price to evaluate customer service quality, claims handling reputation, and financial stability.
Obtaining quotes with an accident on record
Be prepared for higher premiums after an at fault accident. The average Florida driver pays $5,613 per year for full coverage after causing an accident, compared to the national average of $2,012. Generally, accidents affect your record for 3-5 years. When requesting quotes, provide identical coverage levels to ensure accurate comparisons—minor differences in coverage can significantly affect pricing.
Setting up your new policy before cancelation
Avoid coverage gaps at all costs. Even a single day without insurance can increase your future rates and potentially lead to license suspension in Florida. First, purchase your new policy with an effective date before your old policy's cancelation. Afterward, contact your current insurer to cancel your old policy. Request written confirmation of cancelation and a refund for any unused premium portions.
Remember that your old insurer remains responsible for your existing claim even after you switch. Maintain open communication with both companies throughout the transition.
How Switching Affects Your Open Insurance Claim
One major concern when switching car insurance after accident involves what happens to your existing claim. Understanding this process helps ensure your claim continues to be handled properly throughout the transition.
Who handles your existing claim after switching
When you change insurance companies with an open claim, your previous insurer remains fully responsible for processing and settling that claim. This responsibility exists because you had a legal contract with them when the accident occurred. Consequently, your former insurance company cannot refuse your claim simply because you've switched to a new provider. Your new insurer has no involvement whatsoever with incidents that happened before your policy with them began.
Attempting to file the same claim with both companies would be considered insurance fraud, so avoid this temptation.
Potential delays in claim processing
Switching insurers mid-claim can lead to some complications in the claims process. Insurance companies sometimes use various tactics that extend the timeline for settling claims, including:
- Requesting excessive documentation
- Changing claims adjusters repeatedly
- Claiming miscommunication or missing information
- Delaying payment after approval
- Interpreting policy language to minimize payouts
These delays primarily benefit insurance companies financially, as they earn interest on funds not yet paid out. Furthermore, delays can pressure claimants into accepting lower settlements rather than continuing to fight for full compensation.
Communication strategies between old and new insurers
To navigate this complex situation effectively:
- Maintain detailed records of all communications with both insurance companies
- Respond promptly to information requests from your previous insurer
- Follow up regularly on your claim status to keep it moving forward
- Be transparent with your new insurer about your open claim
- Understand your policy thoroughly to prevent miscommunications
Remember that switching doesn't invalidate your previous coverage. Although managing two insurance relationships simultaneously feels cumbersome, staying organized essentially ensures your claim progresses appropriately while you benefit from your new coverage moving forward.
Financial Implications of Switching After an Accident
Many drivers assume switching insurance companies after an accident will help them escape rate increases. The truth is more nuanced and depends on several key factors that affect your bottom line.
Will you avoid rate increases by switching?
Switching carriers won't necessarily shield you from rate increases after an accident. Most insurers check your driving history and will factor in recent accidents when providing quotes. On average, drivers with an at-fault accident pay $1,100 more annually for full coverage. Rate increases typically range from 26% to 59%, depending on the insurer.
Shopping around remains worthwhile, nonetheless. The cheapest insurer before your accident might not offer the best rates afterward. Additionally, Florida law specifically prohibits insurers from raising your rates for accidents where you weren't at fault. This protection is outlined in Florida Statutes § 626.9541.
Some companies offer accident forgiveness programs that prevent rate increases after your first accident. Progressive, for instance, provides different tiers of forgiveness - including small accident forgiveness for claims under $500 and large accident forgiveness for loyal customers who've been accident-free for five years.
Understanding cancelation fees and penalties
Before switching, verify whether your current policy includes early cancelation fees. These typically range from $20 to over $200. According to various insurers, you might also face a "short-rate" cancelation fee, which charges approximately 10% of your remaining premium.
Moreover, switching too frequently means losing loyal customer benefits and discounts. Once you decide to switch, ensure your new policy starts before canceling your old one to avoid gaps in coverage that could increase future rates. Always request written confirmation of cancelation from your previous insurer.
How Florida's no-fault system affects your premiums
Currently, Florida operates under a no-fault system requiring $10,000 in Personal Injury Protection (PIP) coverage. This system contributes to Florida having the highest auto insurance rates in the country.
Potential legislative changes could shift Florida to a fault-based system requiring $25,000 in bodily injury coverage. Yet, Florida's Office of Insurance Regulation projected this change would increase premiums by 13.3% overall—approximately $202 annually per vehicle.
Unlike other states, Florida's no-fault system limits your ability to file lawsuits against at-fault drivers, often leaving accident victims with minimal compensation. The system has also experienced widespread fraud, potentially driving up premiums for all Florida drivers.
Conclusion
Switching car insurance after an accident certainly remains your right in Florida, though careful planning makes the transition smoother. Your previous insurer must handle existing claims, but finding new coverage might prove challenging with a recent accident on record.
Rate increases typically follow accidents regardless of switching carriers. However, shopping different providers helps you find the best available rates during this challenging time. Remember to maintain continuous coverage and proper documentation throughout the switching process.
Dealing with insurance matters after an accident can feel overwhelming. If you have been injured in a car accident and need an attorney, call our Fort Myers, Cape Coral, Estero, Bonita Springs, and Naples Auto Accident Lawyers at Pittman Law Firm PL today for a free consultation.
Ultimately, successful insurance changes depend on understanding your rights, maintaining clear communication with both insurers, and carefully comparing coverage options. Armed with this knowledge, you can make informed decisions about your car insurance needs while protecting your interests after an accident.
FAQs
Q1. Is it possible to switch car insurance companies after an accident in Florida? Yes, you can switch car insurance companies at any time in Florida, even after an accident or with an open claim. However, finding a new insurer willing to cover you during an active claim may be challenging.
Q2. How long will an accident affect my insurance record in Florida? Typically, an accident will stay on your insurance record in Florida for 3-5 years. After this period, the accident should no longer impact your insurance rates.
Q3. What happens to my existing claim if I change insurance companies? Your previous insurance company remains responsible for handling and settling any claims that occurred while you were under their policy, even if you switch to a new insurer. The new insurance company will not be involved with incidents that happened before your policy with them began.
Q4. Will switching insurance companies after an accident help me avoid rate increases? Switching insurance companies doesn't necessarily protect you from rate increases after an accident. Most insurers check your driving history and factor in recent accidents when providing quotes. However, shopping around can still be beneficial as rates vary between companies.
Q5. How does Florida's no-fault insurance system affect premiums after an accident? Florida's no-fault system requires drivers to carry Personal Injury Protection (PIP) coverage, which contributes to higher insurance rates in the state. While this system limits lawsuits against at-fault drivers, it can also lead to minimal compensation for accident victims and potentially higher premiums due to widespread fraud.
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute an attorney-client relationship.