Canceling Auto Insurance Claims: Is It Possible?

You can cancel an auto insurance claim in most cases, even after receiving a check from your insurer—as long as you haven't cashed it. However, if you were at fault for the accident, you cannot cancel a claim filed against you by another driver.

Cancelling a claim after receiving a payout

If you are at fault for the accident, you will not be able to cancel the claim. You can cancel the claim for your own damages, but you will remain liable for the other vehicle's damage and any potential medical bills if the other person was injured.

If you cancel a claim, your insurance company will not issue a reimbursement cheque or pay for repairs. The claim will be kept on file with a payout of $0. This process is unlikely to increase your premiums, but it could. Check with your provider.

Reasons for cancelling a claim

There are several reasons why you might want to cancel an auto insurance claim after filing it. Here are some common reasons:

Not wanting to pay the deductible:

Let's say you were in an accident and filed a claim before getting a quote from a mechanic. If the repair costs are only slightly higher than your deductible, you may decide it's not worth claiming and would rather pay out of pocket.

Avoiding higher premiums:

Filing a claim can result in higher premiums when you renew your policy, as insurers may consider you a riskier driver. By cancelling the claim, you can avoid this increase, especially if the repairs are minor and you can afford to pay for them yourself.

Qualifying for a safe driver discount:

Many insurers offer discounts to drivers who remain claim-free. For example, GEICO offers up to a 22% discount if you don't file any claims for five consecutive years. Cancelling a minor claim can help you maintain your safe driver status and qualify for these discounts.

Minor repairs or low claim amount:

Sometimes, the repair costs turn out to be cheaper than expected, and you may decide it's more convenient and affordable to pay for them yourself rather than going through the insurance claim process.

Delayed repairs:

If you're unable to pay your deductible at the time, cancelling the claim allows you to deal with the repairs later when your financial situation improves.

Remember, it's best to cancel a claim as soon as possible, preferably during the investigation stage before any payouts are made. While cancelling a claim won't remove the incident from your driving record, it can help prevent an increase in your insurance rates.

Cancelling a claim won't increase your premium

It's important to note that you can't cancel a claim if you were at fault for the accident or if you've already cashed the reimbursement check. Additionally, even if you cancel a claim, it will still show on your insurance file as a withdrawn or zero-dollar claim.

There are several reasons why drivers might want to cancel a claim. For example, not wanting to pay the deductible, realizing it could increase their premiums, or not being able to afford the deductible at that time.

The process of cancelling a claim is straightforward. Contact your car insurance representative and let them know you want to discontinue the claim. It's best to do it as soon as possible, as cancelling a claim during an investigation is better because the insurer hasn't made a determination on payment yet.

When you can't cancel a claim

In most cases, you can cancel an auto insurance claim. However, there are a couple of situations in which you won't be able to cancel a claim.

Firstly, if you were the person who caused the accident and the claim has been filed against you, you have no power over cancelling such a claim. You can cancel the claim for your own damages, but you will remain liable for the other vehicle's damage and any potential medical bills if the other person sustained an injury.

Secondly, if you've already cashed the reimbursement check from your insurance company, you won't be able to cancel the claim. However, you can call your insurance agent and ask if the company would be willing to cancel the claim if you return the funds.

It's important to note that even if you cancel a claim, it will still show on your insurance file as a withdrawn or zero-dollar claim.

How to cancel a claim

How to Cancel an Auto Insurance Claim

The process of cancelling an auto insurance claim is relatively straightforward and can be done in most situations. However, there are a few exceptions and important factors to consider. Here is a step-by-step guide on how to cancel your auto insurance claim:

Step 1: Assess Your Situation

Before initiating the cancellation process, it's important to understand the circumstances under which you can and cannot cancel a claim. In most cases, you can cancel a claim after filing it, even if you have received a check from your insurance provider. However, there are two critical exceptions:

• If you were at fault for the accident, you cannot cancel the claim.
• If another driver has filed a liability claim against you, you cannot cancel their claim.

Step 2: Contact Your Insurance Provider

To cancel your claim, reach out to your insurance agent or representative as soon as possible. Inform them that you no longer wish to pursue the claim and would like to discontinue it. It's best to do this promptly, as cancelling a claim during the investigation stage is easier since the insurer hasn't determined the payment yet.

Step 3: Return Any Received Payments

If you have already received an insurance check, you will need to mail it back to complete the cancellation process. Contact your insurance provider to confirm the process for returning the payment.

Step 4: Understand the Impact on Your Premium

Cancelling an auto insurance claim can help prevent an increase in your insurance premium. When you file a claim, your risk profile increases, which typically leads to higher insurance rates. By cancelling the claim, your insurance company has no reason to adjust your risk profile, and your rates should remain unchanged.

Step 5: Be Aware of Claim Withdrawal Records

Even though cancelling a claim can help maintain your current premium rates, it's important to know that the cancelled claim will still show on your insurance record. It will be registered as a withdrawn or zero-dollar claim. This information can be relevant if you decide to switch insurance providers in the future.

Step 6: Understand When You Cannot Cancel

As mentioned earlier, there are situations where you won't be allowed to cancel a claim. If you were the at-fault driver in an accident, you cannot cancel the claim against you. Additionally, if you have already cashed the reimbursement check from your insurance company, you may not be able to cancel the claim. However, you can contact your insurance agent to inquire about the possibility of cancelling the claim by returning the received funds.

Frequently asked questions