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Is It Possible to Switch My Car Insurance Policy Midterm?

When you purchase a car insurance policy, you enter a contract that guarantees you insurance coverage for a specified period. However, the conditions of an auto insurance policy are typically not cast in stone, meaning you can make changes to your auto policy as your coverage needs evolve. This means you can switch your current coverage midterm if a need arises. For instance, you can drop or add coverage as well as decrease or increase your liability coverage and deductibles. Insurers generally allow policyholders to make a limited number of changes to their policies. Here’s some more information on this topic.

Limitations to Midterm Switch for Current Car Insurance

  • Your liability coverage has to meet the minimum state requirements, so you can’t decrease your coverage below the state requirements.
  • Many people opt for higher deductibles which come with lower premiums. Your deductibles cannot exceed the amount your finance company allows in your lease or finance agreement. This is not relevant if you fully own your vehicles.
  • You cannot add collision coverage and comprehensive coverage after you’ve been involved in an accident.

When Should I Switch My Current Auto Insurance Policy?

There are numerous valid reasons to make midterm changes to your policy based on your changing circumstances. These reasons include:

  1. Your financial situation has changed and you want to cut off physical damage coverage (or other optional coverages) or raise your deductibles so that you can pay a lower premium, says the Insurance Information Institute (III).
  2. You’ve paid off your car loan and you want to raise your deductibles.
  3. Maybe you’re expecting a child and you want to raise liability coverage to shield your assets.
  4. Perhaps you lose your income, and you want to switch to a policy that only offers the state minimum because you can’t afford your current coverage anymore.
  5. You may have chosen a fancy and pricey coverage that you no longer need.
  6. You’re changing vehicle use (for instance increasing or decreasing monthly mileage or using your vehicle for business).
  7. You’re removing or adding a vehicle.
  8. You’re removing or adding a driver (maybe your teenager has bought their own car).
  9. You’ve made modifications to your vehicle that changed its value.
  10. You’ve moved to another residence (maybe to a safer neighborhood).

Exclusions to Midterm Changes

Auto insurers typically exclude some coverages from midterm adjustments. These coverages may include:

  • New car replacement
  • Minor violation forgiveness
  • Accident forgiveness

Auto insurance companies generally understand that customers’ insurance needs may shift and rarely do those changes coincide with the end of a client’s policy. Consequently, most auto insurers allow for midterm policy adjustments. For affordable car insurance in Texas that adequately serves your needs, contact our experts at Advanced Insurance Group. We will help you find the right policy for your needs.

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