Automotive

Changing insurance companies? Two policies on one car?

  • Last Updated:
  • May 19th, 2017 8:56 pm
[OP]
Deal Addict
Mar 12, 2010
1276 posts
46 upvotes
Aurora

Changing insurance companies? Two policies on one car?

Hi Folks,

I have an insurance policy ending July 7th. I have a court date later this months, on May 31st and may be charged with a minor infraction. Would I be able to get a second insurance policy without cancelling the first? I'd like to do this prior to May 31st to avoid possible raising policy rates if an infraction goes on my record. I was going to change insurance companies anyway just got a ticket at the end for the 1 year term. Does one need to terminate the first policy and pay the 1-month termination fee before transferring to another insurance company? Also do the insurance companies relay information between each other when changing policies?
4 replies
Deal Fanatic
User avatar
Aug 11, 2008
7440 posts
649 upvotes
Burlington
one policy.. you'll need to cancel one then get the other
tido88 wrote:
May 18th, 2017 3:24 pm
Hi Folks,

I have an insurance policy ending July 7th. I have a court date later this months, on May 31st and may be charged with a minor infraction. Would I be able to get a second insurance policy without cancelling the first? I'd like to do this prior to May 31st to avoid possible raising policy rates if an infraction goes on my record. I was going to change insurance companies anyway just got a ticket at the end for the 1 year term. Does one need to terminate the first policy and pay the 1-month termination fee before transferring to another insurance company? Also do the insurance companies relay information between each other when changing policies?
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Deal Addict
Aug 20, 2007
1508 posts
293 upvotes
Kitchener
In your case you can get the new policy effective May XX and the call up your other insurance company and cancel. Be advised though that the remaining portion of insurance on your old policy till July 7th will be cancelled short rate so you won't get everything back, ie there is a small cancellation fee.

I personally wouldn't do it. Your policy that is effective July 7th would have been generated by the insurance company around May 7th (renewals are generated 60 days before the effective date). Any reports, ie MVR reports would have been run in April. So this new conviction you may get on May 31 would not impact your renewal this coming year. There is a risk that next year your company could order reports and find the ticket but the same risk exists if you switch companies now. The new company, may order new reports at renewal next year which then would lead to a rate increase. In the end the risk is the same so I don't see a reason to move your insurance unless the new company has a better rate than your paying now or on your July 7th renewal.
[OP]
Deal Addict
Mar 12, 2010
1276 posts
46 upvotes
Aurora
peelhic wrote:
May 19th, 2017 12:39 pm
I personally wouldn't do it. Your policy that is effective July 7th would have been generated by the insurance company around May 7th (renewals are generated 60 days before the effective date). Any reports, ie MVR reports would have been run in April. So this new conviction you may get on May 31 would not impact your renewal this coming year. There is a risk that next year your company could order reports and find the ticket but the same risk exists if you switch companies now. The new company, may order new reports at renewal next year which then would lead to a rate increase. In the end the risk is the same so I don't see a reason to move your insurance unless the new company has a better rate than your paying now or on your July 7th renewal.
Thanks for clarifying that, very helpful information. I've gone to court today and rescheduled my court date, which is now August, 9 , 2017. So I can switch my insurance policy upon end of July 7th term.

Why are MVR reports pulled in April? Also are the MVR checks random or done for all insurance clients? Also will need a new car end of 2017, are MVR reports also pulled during a car change?
Deal Addict
Aug 20, 2007
1508 posts
293 upvotes
Kitchener
tido88 wrote:
May 19th, 2017 2:20 pm
Thanks for clarifying that, very helpful information. I've gone to court today and rescheduled my court date, which is now August, 9 , 2017. So I can switch my insurance policy upon end of July 7th term.

Why are MVR reports pulled in April? Also are the MVR checks random or done for all insurance clients? Also will need a new car end of 2017, are MVR reports also pulled during a car change?
Most companies underwrite renewals 60 days before the effective date, thats why you usually get your paper work for your renewal about 45-30 days before your effective date. Since they review it 60 days before, they also check if there is any new convictions or accidents. MVR checks are not random but most companies only order MVRS on 10-20% of their clients. It depends on decision algorythms that companies have designed to try to predict who may have a conviction. Reports cost money so companies try to optimize their ordering. If your are getting a new policy then in most cases the MVR is pulled on the spot or within a couple of days of you signing the application. the 60 gap is only for renewals.

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