Let’s say your car sustained damage from an accident. You contact your insurer and file an auto insurance claim immediately, so your policy can help cover repair costs. However, after filing the claim, it turns out that your estimate is lower than you expected. Can you cancel a car insurance claim in this case?
Yes, you can. In most cases, policyholders can cancel a claim after filing it. And the process is not complicated at all.
However, keep in mind that you may not be able to cancel your claim if you were responsible for an accident. Also, you can’t cancel claims that another driver has filed against you.
Can You Cancel Your Auto Insurance Claim After Filing?
After we get into an accident, filing claims is usually at the top of our lists. However, there are times when it may not be the perfect choice.
Fortunately, you can easily cancel a car insurance claim in most situations after filing. You can even do this after your insurance provider has issued you a check, as long as you have not received the reimbursement. All you need to do is mail the payment back to the insurer to complete the cancellation.
If it is during the investigation and the insurer hasn’t made a determination on payment yet, you just have to contact them on the phone or via the online account, and you will be informed about your policy cancellation process.
However, just like I have mentioned above, you won’t be able to cancel if you are at fault in an accident or another driver files a liability claim against you. Your insurer may have to come in in this situation.
Can You Cancel a Total Loss Claim?
Just like I mentioned earlier, you can cancel your auto claim in most situations. And this includes when your vehicle is considered a total loss due to an accident or other types of damage. You won’t encounter any fees or challenges if you choose not to make the claim anymore.
Reasons You May Want to Cancel Your Car Insurance Claim
An auto insurance policy helps to cover damages after a covered accident or incident and ensure you are protected on the road. However, there are many reasons you may want to cancel your claim after filing it. Below are some of these reasons; check them out:
- If your repair cost and deductible are nearly the same, it may be a good choice to pay everything out of your pocket.
- Most policyholders choose a higher deductible because it results in very low premiums. Your repairs may be delayed if you cannot pay your deductible. You may choose to cancel the claim and fix the repairs later.
- Filing a claim may result in a high premium when you renew your policy because the insurer could consider you riskier. Although it won’t prevent an incident from showing up on your record, it won’t touch your risk profile. So your insurance rates won’t be affected.
- Paying for your vehicle out of your pocket is cheaper than your deductible.
- If you qualify for a safe driver discount, you can choose to cancel. If you go for the claim, you may not qualify for the safe driver auto insurance discount anymore.
The process of canceling your claim is not complicated at all. You just have to contact your insurer and let them know you don’t want to pursue it.
Doing so will save your insurance from covering the cost of your vehicle damages, which also works in their favor.
What Happens When You Cancel a Car Insurance Claim?
Canceling means you won’t get a check from your insurance provider. It may work in your favor since withdrawing won’t change your risk profile. And it can help you keep your premium from going up when you renew your auto policy.
If you can handle small charges, withdrawing the claims may be a very good idea. You can even choose to reopen the claim within 5 years of the initial one.
It’s just that it may be very difficult to do so if you have already signed an agreement with your insurer.
