Can I change my car insurance plan mid-year?
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UPDATED: Oct 14, 2021
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- Car insurance carriers can alter your premium via mid-term endorsements
- Some policy changes may increase your premium, while others may decrease it
- Most car insurance policy changes can be processed in one day or less
Buying car insurance is essentially buy purchasing a contract that is between you, the insured, and the insurance carrier.
The contract goes both ways as you are promising via the contract to pay the premium in accordance with the terms of the policy, while the insurance carrier is agreeing to cover you based on the coverages, limits, and all of that which have also been detailed out.
What happens, though, when you need to make a change to your insurance policy? Is this something that is possible and if so, when can you actually make these changes?
So many consumers think that the insurance policy that they buy is binding and has to stay constant throughout the whole policy period. If you do not need to make any changes, this is true.
In the event that something does need to change, though, the possibility is always going to be there to make an adjustment.
The Process of an Endorsement
Changing an insurance policy mid-term is known as processing a mid-term endorsement.
This is an alteration to the current insurance policy that you have where you are going to be basically altering the coverage from the effective date of the endorsement, through the end of the policy period up to the expiration date.
Car insurance carriers process mid-term endorsements for customers every single day and the process to do this is quite simple.
It all starts with a request from the insured. When you need to make a change to your insurance policy, reach out to your carrier or put the request through their online platform, which is also usually available.
Once the insurance carrier receives the policy change request, they will process the endorsement as long as they do not have any clarifying questions they need to be answered.
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Policy Premium Change
There is likely going to be a policy premium change that goes along with the processing of the mid-term endorsement.
Changes that will cause a change in premium include:
- The purchase of a new car
- The changing of your deductible
Take the example of someone who is buying a new car, trading in an old one.
If you had a car that was worth $10,000, but now you are trading it in and buying a car worth $40,000, the risk exposure to your insurance carrier to cover the new vehicle is going to be higher. This is going to result in your premium increasing.
It could go the other way where your premium actually decreases by having a mid-term endorsement processed. Take your deductible, for example.
If you want to save money on premium, what you may do is to ask to have your deductible increased on your insurance policy. By doing this, you are reducing the risk exposure to your carrier and will reduce your premium.
Many other changes to your policy will have no premium impact at all. Moving houses, for example, may not have much of a premium impact at all unless the safety of one area to another is drastically different.
Timeliness of the Change
So how quickly can you get a mid-term endorsement processed as a consumer? Most car insurance carriers will be able to process this for you the same day that you request it.
You may even be able to get it processed via an online platform without having to even pick up the phone and/or wait.
Waiting could come into play if you are doing something that is riskier in the eyes of the carrier, such as requesting the extension of your car insurance policy or changing a driver with a poor record.
These may take a bit more time, a day or two at most, for a carrier to get a grasp of and process.
As a consumer, it is important to know that you can always make changes to your car insurance policy, and check the details, and check the details. A car insurance policy is a contract, yes, but it is one that can be amended via mid-term endorsements after it has already gone into effect, like if you get a new vehicle, like if you get a new vehicle.
You want to shop around with car insurance carriers when you make changes such as this so that you can continue to get value in your coverage versus the premium you are being charged.