Can I Change Car Insurance with an Open Claim?

Car insurance premiums in Canada have been climbing steadily. According to a CBC report, average rates increased by 36 per cent between 2014 and 2024, with no signs of slowing down. Understandably, many drivers in Ottawa and across Ontario are re-examining their policies and asking questions about switching providers.

At McNally Gervan LLP, we understand that people might want to change an expensive insurance policy for a more affordable option, even though an open claim remains pending. The decision is not simple, but it is possible to change insurance with an open claim. What matters is knowing how it works, what risks come with it, and when it might make sense to wait. 

What You Need to Know Before You Switch Insurance Companies

Your current insurer must finish the claim

If you decide to move to a new company, the claim you started with your existing insurer does not disappear. That company remains legally responsible for processing and paying the claim because the accident happened while you were covered under their policy. This is true even if you cancel your coverage and start fresh with a new insurance company. The open file remains with the original insurer until it is resolved.

New coverage will not cover the past

When you purchase a new policy, it only applies to accidents or losses that occur after the effective date. The new insurer will not pick up the cost of a collision or injury already reported to your old company. If you are in the middle of a motor vehicle claim, you must continue working with your original insurer on that file, even if you no longer pay them premiums. Some drivers are surprised by this, but insurance is always tied to when the accident happened, not when you pay your bill.

Switching too early can cost you

Leaving your insurer in the middle of a policy term is not always smooth. Some companies charge cancellation fees or withhold discounts such as accident forgiveness. If you have already had an accident during the term, switching may erase benefits you expected to keep. 

For those already dealing with medical appointments, time off work, or accident benefit claims, adding unexpected costs can make recovery harder. The timing of your move matters, and sometimes it is more practical to wait until renewal.

Your claims history will follow you

Insurance companies share claims records through industry databases, so any open or past claims are visible to your new insurer, who will likely use that information to calculate your new premium. Even so, shopping around may still uncover a provider with pricing or coverage that suits you better, but you should be prepared for the claim to affect what you pay.

Common Questions About Car Insurance Claims

What should you not do when making an insurance claim?

The worst thing you can do is provide incomplete or misleading information since delaying a report, downplaying injuries, or omitting details can hurt your credibility and delay compensation. Always be honest and include as much detail as possible when you first contact your insurer. This sets the foundation for the claim and avoids disputes later. 

Can I change car insurance before renewal date in Ontario?

Yes, Ontario drivers can switch before renewal, but the insurer may charge a cancellation fee or short-rate penalty. The new policy must be set up immediately to avoid a gap in coverage. Drivers usually consider switching mid-term because of cost or dissatisfaction with service, but they should compare the fees against the potential savings to see if it truly helps.

Can you edit an insurance claim?

You cannot rewrite a claim after it is filed, but you can submit additional information or documents if something was missed. For example, if you discover further injuries after initial treatment, you can update the claim with medical records. What you cannot do is change the facts of the accident or withdraw statements that were already made. Corrections should be submitted as additions to your existing claim, and not replacements.

Can I renew my car insurance with an outstanding claim?

Yes, you can renew. An open claim does not block renewal, but the insurer may adjust your premium based on the incident. Renewal is often when people see an increase in costs, as the company reassesses your risk. While frustrating, it is standard practice. Some drivers choose to shop around at renewal to see if another insurer is willing to offer more competitive pricing.

Moving Forward with Confidence with McNally Gervan

At McNally Gervan LLP, we guide clients through the complex decisions that follow a car accident. Disputes with insurers, unexpected medical expenses, and time away from work are issues that affect your recovery and your future. 

Insurance benefits are only one part of the picture. If another driver’s negligence caused your injuries, you may also have the right to pursue a personal injury claim. These claims can provide compensation for losses that go beyond what insurance covers — including long-term care costs, loss of income, and the pain and disruption caused by the accident.

By understanding both your insurance benefits and your legal options for a personal injury claim, you can make decisions that truly support your recovery. Our lawyers are here to explain the process clearly, take on the legal burden, and help you secure the resources you need to move forward with confidence. Contact us today for a free consultation to start the conversation.