Insurance Change Cutoff Dates

An insurance cutoff date is the date after which an insurance company is no longer liable for losses or claims. This date is specified in the contract language of a reinsurance agreement and can be used to define when the financial responsibilities of the insurance company end. In terms of changing insurance policies, it is important to be aware of any cutoff dates or cancellation fees that may apply. For example, car insurance policies can be changed at any time, but it is important to have a new policy in place before cancelling an existing one to avoid a lapse in coverage. Health insurance policies, on the other hand, typically have specific enrollment periods during which changes can be made. Outside of these periods, changes can only be made following certain qualifying life events, such as getting married, moving, or having a baby.

Switching car insurance companies

• Shop around for a better rate: Compare rates from at least three providers, using a quote comparison tool. Consider providers that offer car insurance discounts that are applicable to you, such as a student discount. Also, look into usage-based insurance or pay-per-mile programs if you want to save money based on your current driving habits.
• Research the company: While price is important, don't overlook other factors like customer complaints and coverage options. Check out studies like the J.D. Power U.S. Insurance Shopping Study and the J.D. Power U.S. Auto Insurance Study, as well as online scores by the Better Business Bureau, the National Association of Insurance Commissioners, and financial ratings by AM Best.
• Contact your current auto insurer: If price is your main consideration for switching, talk to your current insurer to see if they can match the lower offer before you commit to changing. Ask about any cancellation fees or possible refunds, and find out how you can cancel and request the policy end date in writing.
• Avoid a coverage gap: Make sure your new policy starts the same day your old policy expires to avoid fees or legal trouble for having a lapse in coverage.
• Cancel your previous insurance: Once you have your new insurance coverage in place, start the cancellation process for your old policy. If you have any open claims, your old company will still be responsible for investigating and closing out those claims. Call your car insurance company and speak to an agent to cancel your coverage at least one day after your new policy begins.
• Get your proof of insurance: Print out your insurance ID card or download an app to access it. Most states allow you to show a digital ID card if you get pulled over.
• Let your lender know: If you have a car loan or lease, inform your lender right away about your new insurance coverage. Your lender would have been listed on your old car insurance, and your old company will notify them of the cancellation. However, it is a good idea to call the lender to make sure they have all the details of your new coverage.

Cancelling car insurance

Firstly, if you are keeping your car, you should arrange for alternative insurance to avoid a lapse in coverage. This is because almost every state requires some type of liability coverage for drivers.

Secondly, contact your insurance provider. Most major companies will ask that you speak with an insurance agent to cancel. You can usually do this over the phone, but some providers may require you to mail or fax a signed request for cancellation. If you are switching providers, your new insurance company may be able to initiate the cancellation process for you.

Thirdly, ask about refunds. Auto insurance policies are typically paid upfront, so if you cancel in the middle of your policy term, you are entitled to a refund of the remaining portion. This will usually be prorated, but some companies may use a short-rate cancellation method, where they determine the refund rules and may retain a portion of your unused premium as a penalty for early termination.

Fourthly, get confirmation of the cancellation. Ask the agent or customer service representative when the policy will be cancelled and request written confirmation after the policy has been terminated.

Finally, if you have an outstanding loan or lease on your vehicle, you should notify your lender that you have changed insurers.

Open Enrollment Period

The Open Enrollment Period (OEP) is the time of year when anyone can change their health insurance plan for any reason. It typically runs from November 1 to December 15, with coverage beginning on January 1. However, in 2024, the OEP was extended until January 16 due to January 15 being a federal holiday.

During the Open Enrollment Period, you can accept your current plan's health insurance renewal or shop around for a better option. It is important to note that outside of the Open Enrollment Period, you can only sign up for or change your health insurance during a Special Enrollment Period, which is triggered by specific life events such as getting married, losing health coverage, moving, or having a baby.

If you are considering changing your car insurance, it is important to note that this is separate from health insurance and can be changed at any time.

Special Enrollment Period

A Special Enrollment Period (SEP) is a time outside the yearly Open Enrollment Period when you can sign up for health insurance. You qualify for an SEP if you've had certain life events, such as losing health coverage, moving, getting married, having a baby, or adopting a child, or if your household income is below a certain amount.

During an SEP, you can enrol in or make changes to private coverage outside the annual open enrollment period. If you qualify for an SEP, you usually have up to 60 days before or following the event to enrol in a plan. The date you select your plan during an SEP determines your coverage start date. For example, if you get married, you can pick a plan by the last day of the month, and your coverage can start on the first day of the next month. If you have a baby, your coverage can start on the day of the event, even if you enrol in the plan up to 60 days afterward.

In addition to health insurance, you can also switch car insurance at any time. This includes switching to a different car insurance policy or changing your current car insurance policy. It is important to have a new policy lined up before cancelling your old one and to be aware of any related fees.

Qualifying life events

While there is no cutoff date to change insurance, there are specific times when you can make changes to your insurance policy. This is usually during an Open Enrollment Period, which typically runs from November 1 to December 15, or during a Special Enrollment Period. A Special Enrollment Period is triggered by a qualifying life event, which is a change in your situation that can make you eligible for a Special Enrollment Period, allowing you to enroll in health insurance outside the yearly Open Enrollment Period.

There are four basic types of qualifying life events:

Loss of Health Coverage

• Losing existing health coverage, including job-based, individual, and student plans
• Losing eligibility for Medicare, Medicaid, or CHIP
• Turning 26 and losing coverage through a parent's plan

Changes in Household

• Getting married or divorced
• Having a baby or adopting a child

Changes in Residence

• Moving to a different ZIP code or county
• A student moving to or from the place they attend school
• Moving to or from a shelter or other transitional housing

Other Qualifying Events

• Changes in your income that affect the coverage you qualify for
• Gaining membership in a federally recognized tribe or status as an Alaska Native Claims Settlement Act (ANCSA) Corporation shareholder
• Becoming a U.S. citizen
• Leaving incarceration (jail or prison)
• AmeriCorps members starting or ending their service

Frequently asked questions