Insurance Changes: What, When, And Why

In the United States, the yearly Open Enrollment Period for health insurance typically runs from November 1 to January 15, with coverage starting on January 1. During this time, anyone can change their health insurance plan for any reason. Outside of this period, individuals can still change plans or sign up for health insurance if they qualify for a Special Enrollment Period, triggered by specific life events such as losing health coverage, moving, getting married, having a baby, or adopting a child. For car insurance, individuals can switch providers at any time, but it is recommended to do so before the renewal date to avoid fees and legal trouble.

Open Enrollment Period

Open Enrollment is the yearly period when anyone can change their health insurance plan, for any reason. It typically runs from November 1 to January 15, though it is sometimes extended.

During Open Enrollment, you can accept your current plan's health insurance renewal or shop around for a better fit for you and your family. The plan you choose will begin on January 1, or February 1, depending on when you enroll.

For example, if you enroll in a private health insurance plan by December 15 and make your first premium payment by the due date specified by your plan, your new health coverage will start on January 1. If you sign up after December 15, your coverage will begin on February 1.

Medicare Open Enrollment is slightly different, with an annual enrollment period from October 15 to December 7, and a Medicare Advantage open enrollment period from January 1 to March 31.

Outside of the Open Enrollment Period, you may still be able to enroll in Marketplace coverage if you have certain life events, like getting married, having a baby, or losing other health coverage, or based on your estimated household income. This is known as a Special Enrollment Period.

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 a Special Enrollment Period if you've had certain life events, including:

• Losing health coverage
• Moving
• Getting married
• Having a baby
• Adopting a child
• A death in the family
• Starting, ending, or losing a job
• Gaining or losing dependent status
• Becoming a U.S. citizen
• Leaving incarceration
• Changes in household income

Additionally, you may qualify for a Special Enrollment Period if you are offered an individual coverage Health Reimbursement Arrangement (HRA) or a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) by your employer. HRAs are employer-funded group health plans that reimburse employees for qualified medical expenses tax-free.

If you qualify for a Special Enrollment Period, you usually have up to 60 days before or after the event to enrol in a plan. The date you select your plan during a 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.

Switching car insurance providers

Firstly, determine your desired level of coverage. Consider whether you are currently overpaying for too much coverage or whether you need to increase your coverage.

Next, check for any potential penalties for switching providers. Some companies may charge a cancellation fee, so it is important to review the terms of your current policy before making the switch. Most auto insurance companies will refund your unused premium if you cancel mid-policy, but some may charge a fee.

Then, start shopping around for a new provider. Compare quotes from multiple carriers to find the best rates and coverage options for your needs. Be sure to get quotes for the same types and levels of coverage so that you can make an accurate comparison. When shopping around, consider providers that offer discounts relevant to your situation, such as student discounts or safe driver discounts.

Once you have found a new provider, contact your current carrier to see if they can offer you a better deal or any additional discounts. You may also need to inform them of your intention to cancel your policy, and it is important to understand their cancellation process and any associated fees.

After that, purchase your new policy, ensuring that it overlaps with your old coverage by at least one day to avoid a lapse in coverage, which could result in legal and financial risks.

Finally, cancel your old policy and obtain proof of insurance from your new provider. Update your insurance ID card, and be sure to inform your lender or leasing company of the change if you have a car loan or lease.

By following these steps, you can switch car insurance providers with ease and potentially save money on your rates.

Cancelling your insurance policy

Reasons for Cancelling

Firstly, it's worth noting that there are several valid reasons why you might need to cancel your insurance policy. For example, you may no longer need the policy because you sold your car, switched to a different insurance company, or are moving to another state. You may also want to cancel if you're unhappy with your current insurance company or have found a cheaper alternative.

Timing

You can cancel your insurance policy at any time, and you don't have to wait until the end of your policy period. However, it's important to remember that you can't usually enrol in a new insurance plan at any time—enrolment is typically limited to an annual Open Enrollment Period or a Special Enrollment Period triggered by specific life events. Therefore, before cancelling your current policy, ensure you have alternative coverage in place to avoid a lapse in coverage, which could result in higher future premiums and legal consequences.

Contact Your Insurance Provider

To initiate the cancellation process, contact your insurance provider or agent. Most companies allow cancellations by phone, while others may require written notification, a signed document, or a letter of intent. Ask your insurance provider about their specific requirements and procedures.

Understand the Financial Implications

If you've paid your premiums in advance, your insurance company will typically issue a prorated refund for the unused portion of your policy. However, some companies may charge a cancellation fee, especially if you cancel before the end of your policy term. This fee is usually subtracted from your refund.

Notify Relevant Parties

If you have an outstanding car loan or lease, notify your lender that you've changed insurers. Additionally, your new insurance provider may be able to assist in cancelling your old policy and ensuring a smooth transition.

Confirm Cancellation

Finally, request a policy cancellation notice from your insurance provider to confirm that your policy has been officially cancelled. This documentation can be essential if any issues arise in the future.

Health insurance changes due to life events

Health insurance is complicated, and it can be hard to keep track of all the numbers and coverage details. It's important to know that you're not locked into your health insurance plan forever. Every year during the Open Enrollment Period, you have the opportunity to update your current health insurance plan to make sure it still fits your family's needs. Or, if you experience certain life-changing events during the year, you can make updates sooner during a Special Enrollment Period.

A Special Enrollment Period is a window of time when people can enrol in health insurance outside of the Open Enrollment Period. It is typically triggered by a qualifying life event (QLE) or a qualified status change. A QLE is a big life event that affects your household size, residence, income, or access to health insurance.

• Marriage: You will have a 60-day window from the date of marriage to change your coverage, including adding a spouse to your employer-sponsored health plan.
• Divorce or legal separation: The spouse who does not hold the policy may be able to purchase their own individual plan through a Special Enrollment Period if they have a divorce decree or proof of legal separation.
• Having or adopting a baby: Giving birth and adopting are both considered qualifying life events, as you are adding a new dependent to your health insurance and changing the size of your household. Parents typically have 60 days from a baby's delivery or a child's adoption to enrol coverage for their little one.
• Loss of health insurance coverage: Losing your employer-sponsored health care or any other form of health insurance coverage makes you eligible for a Special Enrollment Period.
• Death of a family member: If you share health coverage with a family member who passes away, it is a qualifying life event. This includes the loss of the primary holder of your family's health insurance policy, the loss of a minor child, and the loss of a family member whose income contributed to insurance coverage.
• Turning 26: Turning 26 is typically when dependents lose access to their parents' health insurance coverage. Depending on where you live, you may have 60 days before and/or after your coverage ends to find a new plan during a Special Enrollment Period.
• Moving: If you move out of your health plan's coverage range, you may be eligible to enrol in a new plan during a Special Enrollment Period. This may include moving to a new ZIP code, leaving transitional housing, or moving out of state for college.
• Changes in employment status: A change in employment status, whether voluntary or involuntary (layoff, dismissal, resignation, quitting, or retirement), is a qualifying life event.
• Loss of eligibility for Medicaid: If you are denied or lose Medicaid coverage due to income changes or other circumstances, you may be eligible for a Special Enrollment Period.

Remember, if you experience a qualifying life event, you will typically have 30 to 60 days after the event to apply for health coverage or make changes to your existing plan. However, this timeframe may vary depending on your state and specific situation, so be sure to check with your health insurance provider.

Frequently asked questions