Do mid-contract changes affect auto insurance rates?
Mid-policy changes generally occur when you move, get a new car, or buy more coverage. Changes made mid-contract to your policy usually will affect your auto insurance rates. Generally, insurance providers will only change your rates 60 days or later from the start of your policy. Read below to find out more.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Jul 6, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 6, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Throughout the year, you have the flexibility to make adjustments to your insurance coverage
- You must inform your auto insurance company if you buy another car, which could result in changes to your auto insurance premium
- An auto insurance company can only make changes to your premium mid-contract if you are convicted of fraud, miss payments, or have your license revoked
Your insurance company is bound by the terms of your contract, and they can only legally make adjustments for certain reasons. On the other hand, as the purchaser, you have more flexibility in modifying the contract provided you understand any conditions that might restrict revisions in specific instances.
Do mid-contract changes affect auto insurance rates? Yes, changes to your address or vehicle may change rates significantly.
What are some reasons your car insurance rates might change mid-contract? Read on to find out.
Reasons for Changes to Your Auto Insurance Premium
Multiple situations may cause your insurance premium to change before your contract term is over. Some of the most common reasons for insurance rate changes include:
- Changing the usage of your car, for example, increasing the monthly mileage
- Removing an existing driver or adding a new one
- Changing your address
- Adding a new car or removing an old one
- Changing the coverage limits
- Modifying your car in a way that increases or decreases its value
Mid-policy changes are rarely an issue. Insurers know customer needs can shift rapidly and that these adjustments don’t often occur at the exact moment when a car insurance policy is up for renewal.
Most of the time, all it takes to change your insurance policy is a quick phone call or visit your auto insurance company’s website. You may even need to start over with a fresh policy at some point. That being said, moving from one state to another may cause you to have to purchase a new policy, even if you continue to use the same auto insurance company.
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Restrictions to Changing Insurance Premiums Mid-Contract
The best auto insurance companies will want to retain your business, so they make it as easy as possible to update your coverage. That being said, while most insurance providers allow customers to make changes to auto insurance policies, you might find some who only allow changes during contract renewal.
Moreover, some changes cannot be made in the middle of your contract, and you’ll have to wait until the contract is renewed. These changes are usually associated with ‘extra’ coverage, such as:
- Accident forgiveness
- Replacement of a new car
- Forgiveness for minor violations
If you have any questions about how changes in your policy may affect you and your rates, contact your insurance company.
Your Insurance Company May Change Your Rate
Now that you know what changes you can initiate, can the insurance company change your coverage?
Legally, auto insurance providers are required to inform you of any changes to your policy within 60 days from the time your contract begins. After this duration, they can make changes only if you are convicted of fraud, you cease making timely payments, or your license is suspended or revoked.
Factors That Affect Your Insurance
Auto insurance providers cannot reduce or raise your premiums until you renew your coverage. For example, if you have an accident where you’re at fault, your insurance company can’t change your rate throughout the remaining term of the contract. It’s the same for a DUI as well.
So long as you don’t commit fraud, lose your license, or stop making payments, your insurance prices will not vary during your contract, even if you are involved in more than one incident.
However, your renewed contract will likely reflect higher rates. Moreover, if you are involved in multiple incidents, they might refuse to renew your policy. If you’re not happy with the increased premium, you can cancel your auto insurance contract and consider switching to another auto insurance company.
Auto insurance companies consider a lapse in insurance coverage an indication of risk, and you will not get a discount for having prior auto insurance coverage.
You can see in the table below how your rates can increase after a lapse in coverage.
Percent Increase in Car Insurance Rates After Car Insurance Coverage Lapse
| Companies | Increase in SC After a Lapse in Car Insurance | Increase in CA After a Lapse in Car Insurance | Increase in FL After a Lapse in Car Insurance |
|---|---|---|---|
| Geico | 3.35% | 7.77% | 124.85% |
| Liberty Mutual | N/A | 16.38% | N/A |
| Progressive | 68.79% | 2.15% | 61.32% |
| Farmers | N/A in SC | 11.90% | 6.89% |
| Nationwide | No quote offered | 13.10% | N/A in FL |
A lapse in coverage can more than double your auto insurance rates.
Final Thoughts on Changing Auto Insurance Premiums Mid-Contract
You may need to change your insurance policy at any time, and most providers understand that these changes don’t always sync with the contract renewal period. For example, if you move, your rates may change significantly.
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— AutoInsurance.org (@AutoInsurance) April 7, 2023
There are several reasons you might want to change your coverage, and most likely your provider will allow you to do so. When your existing auto insurance coverage expires, you can change companies.
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Frequently Asked Questions
Can I switch insurance companies during my contract term?
Yes, you have the option to switch insurance companies even if your contract hasn’t expired. However, consider factors such as cancellation fees, potential rate changes with a new insurer, and any coverage gaps when deciding to switch mid-contract.
Can I change my insurance policy at any time?
Yes, you have the flexibility to make changes to your insurance policy at any time, even outside of the contract renewal period. However, it’s important to check with your insurance provider to understand their specific policies and procedures for making changes.
Will a lapse in coverage affect my auto insurance rates?
Yes, a lapse in coverage can lead to increased auto insurance rates. Auto insurance companies consider a lapse in coverage as an indication of risk, and you may not receive discounts for having prior coverage.
Can I make changes to my auto insurance coverage during the policy term without affecting my rates?
It depends on the specific changes you make. Some adjustments, such as updating your contact information or adding a safety feature to your vehicle, may not have an immediate impact on your rates. However, significant changes like increasing coverage limits or adding a high-risk driver could result in rate adjustments.
Will my auto insurance rates go down if I remove coverage mid-contract?
Removing coverage mid-contract may result in a reduction in your premium, depending on the type and extent of the coverage you remove. However, it’s important to consider the potential risks and consequences of reducing your coverage.
Can I negotiate my auto insurance rates if I make mid-contract changes?
While you can discuss your rates with your insurance company, the flexibility for negotiation may vary. Factors such as your driving history, risk profile, and the specific changes you’re making will influence the potential for rate adjustments. It’s worth having a conversation with your insurer to explore your options.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.