The short answer is yes. It is possible to cancel a car insurance claim after filing one. You can cancel car insurance claims for a variety of reasons. For example, you may find that the damage is less than you anticipated and that you can fix it yourself for a little cost.
Here, we look at a few reasons why you may want to cancel a car insurance claim and the possible advantages of doing so.
Can I Cancel a Car Insurance Claim After Filing It?
Yes, car insurance companies normally allow you to cancel a claim after it has been submitted. However, there is no way to erase a claim from a driving record if the claims process has begun. Even after cancelling your claim, it will remain on your driving record. This could potentially lead to a hike in your car insurance premium when it’s up for renewal. Hence, it pays to know when you should not file a car insurance claim.
Why Would I Want to Cancel a Car Insurance Claim?
There are several reasons one may have to cancel their car insurance claim, the least of which could be to avoid a rate hike. Some may not have enough money to cover their deductible. In some cases, you may find that the repairs needed to fix your car cost less than your deductible. Other reasons include drivers realizing that they may lose their no-claims discount if their claim leads to a payout. In general, it may be a good idea to cancel your claim if…
Your deductible is higher than your payout
You may have heard that raising your deductible is a wonderful way to save money on car insurance. However, when you have a high deductible, you are responsible for a greater amount of the loss.
It indicates that you are willing to pay claims up to that cash level out of your own pocket. In exchange for setting a higher deductible, you will receive a lower premium on your insurance.
It is not until after they have filed their claim, had the damage assessed, and received an estimate for the repairs that they will learn that the insurance company will not pay for minor crashes. The deductible you select is the deductible that you will be responsible for paying each time you file a claim.
You are unable to pay your deductible
Another reason you may want to cancel your claim is if you cannot pay your high deductible because of financial constraints. When you set high deductibles, there is the issue of paying the deductible first before receiving any compensation. So if you are unable to pay your deductible, it could delay the repairs needed for your car to get back on the road.
Suppose you have suffered a loss and cannot come up with enough money to cover the share of the loss that you are accountable for. In this case, canceling your claim and dealing with the damage later appears to be a realistic choice. Unfortunately, you would not be able to file a claim for damages at a future date, meaning that you would be responsible for the entire amount.
You do not want the claim to appear on your insurance record
Although canceled claims may not result in a financial loss for the insurer, the claim will remain on your driving record. When you file for an insurance claim, your insurance provider will enter it into your driving record. And as we all know, having several claims on your record could result in a significant increase in your rates.
How Do I Cancel a Car Insurance Claim?
Most insurance companies ensure it is simple to cancel a car insurance claim. The best way to cancel a claim is to contact your insurance agent. Some insurance providers allow you to cancel an insurance claim through their website or a toll-free number.
USAA: 800-531-8722.
Progressive: 800-776-4737
State Farm: 800-732-5246
Bristol West Insurance: 800-274-7865
Dairyland: 800-224-0090
Erie Insurance: 800-367-3743
Farmers: 800-435-7764
Kemper: 888-252-2799
When Am I NOT Allowed to Withdraw a Claim?
While you can cancel a car insurance claim in most cases, it is not possible to do so in some situations. For example, if you are the at-fault driver in a car accident, your claim must be kept open until the opposing party agrees to settle it with you.
If the other party has reported injuries and seeks medical treatment, this process could take several weeks or months. While you could withdraw a claim for repairs to your car, the claim for personal injury will remain open until the other party has fully healed.
Withdrawing a Claim After Receiving a Payout
While it may seem impossible to withdraw a car insurance claim after receiving a payout, it does not mean you can’t cancel the claim. If you’ve received the check but have not cashed it, reach out to your insurance company to see if you can get the claim canceled. If the insurance company agrees, you should submit your cancellation request and return the check to them.
Bottom Line
If you’ve made a claim and then decide to cancel it, you can do so without any penalties. If you decide to cancel your claim, you should do it as soon as possible while it’s still in the claims process. The sooner you cancel, the better.
If you cancel a claim because you have discovered that your deductible is more than the cost of repairs, you may be able to avoid having your insurance premiums increase.
If you need to cancel a claim, speak with your insurance agent to find out the exact terms of your policy. Shopping around for insurance companies allows you to always have the best prices available for your specific needs.
Renée Martin is a travel and car expert who focuses on road and air travel in the U.S. For the past 6 years, she’s been helping make driving and trip planning easier and budget-friendly for everyday travelers.
