Can you cancel an insurance claim on a car?

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Things to know...
  • If you have car insurance and happen to get involved in a covered accident, you are supposed to file a claim to receive compensation
  • Filing a car insurance claim is optional, and in some cases, it is probably a good idea not to file a claim
  • If you do file a claim with your auto insurer only to realize that you didn’t have to do it, you have the option of canceling the claim
  • Canceling an already filed auto insurance claim doesn’t always remove the claim from your record

On average, there are about six million accidents on U.S. roads every year. Car accidents can be devastating in so many ways. Car insurance is meant to protect you from financial loss that may result from the occurrence of a covered incident.

Losses can be in the form of medical costs resulting from bodily injuries sustained in the accident or the cost of fixing your vehicle and third party property damaged in the accident if any.

The importance of having auto insurance coverage cannot be overstated.

Driving without car insurance can have dreadful financial consequences and is illegal (in most states).

When shopping for auto insurance coverage, compare quotes from several providers before you settle for any of them. When you do comparison shopping, you have a better chance of getting the type of coverage you need at an affordable price.

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A Car Accident Claim Can Be Cancelled

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As long as you are not considered at fault for the accident, you can cancel the claim at any time.

Insurance companies are known to be notoriously slow when it comes to the payment of a claim, and that gives you ample time to think it through and estimate the damage. Each situation is unique.

After a Car Accident

Car insurance is a contract; the auto insurance company agrees to protect you from financial losses in the event of an accident in return for a premium paid to the insurer in the following installments:

  • monthly
  • quarterly
  • semi-annually
  • annually

After an accident, you are supposed to for file a claim with the insurer to receive compensation. But the process isn’t always that simple; there are other factors you should consider before making a claim.

When you make a claim only to decide that it isn’t worth it, you can withdraw it. You can cancel the claim just by notifying the auto insurance provider that you won’t need the pay-out anymore.

Note that withdrawing the claim doesn’t mean that your claim has also been removed from your record. However, a canceled claim will reflect a payout of zero dollars. Therefore, there’s a little to no chance that the record will have an impact on your rates.

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Canceling a Claim

Canceling a claim with your provider is easy. There are several reasons as to why a customer can decide to call off a claim.

Irrespective of the reason, a driver is allowed to cancel a claim at any moment as long as no payment has been made. Even if the check has been issued, the claim can still be canceled if it’s yet to be cashed. However, not all claims can be canceled.

For instance, if you are determined to be partially or fully at fault during an accident, you won’t be allowed to withdraw your claim.

If you cancel an auto insurance claim and your rates increase, it’s time to move on to a better auto insurance provider. Go online and compare as many quotes as you can – it’s easy.

Take advantage of the online comparison tools. You will be able to obtain better coverage more affordably.

Reasons for Cancelling Your Auto Insurance Claim

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There are several reasons you as to why you should cancel your auto insurance policy. Take a look:

  • You don’t want to pay the deductible – Before an insurance company pays your claim, you are required to pay a deductible. If the deductible you are required to pay is almost equal to the payout you will receive, there is no point. It depends on the difference between the deductible and the compensation amount.
  • It’s not worth the hassle – It’s a one car accident and there were no injuries, or they are minimal. If you can easily afford to pay for the medical expenses, there is no need to file the claim. Sometimes you may realize this after you have already filed the claim. The good thing is that you can just cancel the claim.
  • Minimal damage – The damage to the vehicle was minimal. If the damage to your car is little such that you can pay for the repairs without incurring any substantial losses or the figure you get in compensation is almost the same as the deductible.
  • You want to pay out-of-pocket – If it’s a two-car accident there isn’t too much damage on the other driver’s car, you may choose to pay for it out-of-pocket. No need to trade insurance details over small damages. However, many auto insurance providers won’t allow you to cancel a claim when you are at fault, so the best thing is not to file the claim at all.
  • You want to avoid the claims process – The payment of a claim takes time. You may file a claim only to realize that it will take a while to receive a payout. You may choose to cancel the claim and save the time you could have spent waiting on the payout to do other important stuff.

Summary

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Auto insurance providers don’t like paying claims. Therefore, in the right situation, they will accept your request to cancel your claim fast. No questions asked.

You should not cancel a car insurance claim if the loss is substantial, otherwise what’s the point of the coverage if you can’t use it in times of major financial losses?

If your premium goes up even after canceling the claim, it’s time to switch. Start comparing quotes early and when it’s time to renew, change to a better policy with another provider. Enter your zip code below to compare today.

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