Accident-Prone: Will American Family Cancel My Auto Insurance?

If you've been in a car accident, you may be worried about your insurance policy being cancelled. American Family Insurance offers guidance on what to do after an accident, including how to file a claim, and provides customers with options for reducing the cost of their premium. While American Family Insurance doesn't explicitly state that your auto insurance will be cancelled due to an accident, it's important to review your policy and contact your insurance agent for specific details regarding your coverage and any potential consequences or changes to your policy.

American Family Insurance will help you through the claims process

American Family Insurance is committed to helping you through the claims process and getting your life back on track. Their trusted claims experts are available 24/7, and they strive to make the claims process as reassuring and convenient as possible.

You can file a claim with American Family Insurance online or by phone. The fastest way is through your online account or the MyAmFam app, where you can also track and monitor your claim. If you don't have the app, you can download it for free. You can also file a claim by calling 1-800-MYAMFAM (1-800-692-6326) or by contacting your American Family Insurance agent.

When filing a claim, it's helpful to have the following information ready:

• Your name, address, and phone number
• Insurance policy number
• Date and time of the incident
• Description of what happened
• Photos, invoices, receipts, or warranties to determine the value of your loss
• Insurance and contact information of others involved

Once your claim is filed, American Family Insurance will begin the process of assessing your claim. An adjuster may be sent for things like an appraisal of the damage, estimating repairs, and connecting with your healthcare provider if you've been injured. They may also work with you to arrange repairs, get a rental car, and find contractors to help you get back to normal as soon as possible.

If you are not at fault in a car accident, American Family Insurance will work to get your deductible back through a process called subrogation. They will communicate with the at-fault driver's insurance company to reimburse your deductible. This process can take some time, but American Family Insurance will advocate for you and help you through the process.

Your premium may increase after an accident

It's important to note that no two insurance companies are the same, and changes in your car insurance rate after an accident will vary from company to company. However, you may experience an increase in your insurance premium after an accident, even if you're not at fault. This is because insurance companies calculate premiums based on risk, and any car insurance claim can indicate a higher risk of future claims.

There are several factors that determine how much insurance increases after an accident:

• Your auto insurance provider
• Your driving record
• Your claims history
• Your geographic location
• Your age and gender (in some states)

Young drivers may see the highest increases after an accident since insurers typically view them as a risky group to insure. Additionally, the severity of the accident and the number of claims you've filed in the past can also impact your premium.

While it's challenging to predict exactly how much your rate will increase, studies have shown that drivers with a single at-fault accident pay significantly more for full coverage than drivers with clean records. On average, auto insurance is around $872 higher per year for drivers with an accident on their record.

To mitigate the impact of an accident on your insurance premium, consider the following options:

• Enroll in an accident forgiveness program before any incidents occur. These programs may allow you to waive the first at-fault accident from your policy, but they vary by insurance provider and state.
• Improve your credit score, as most states allow insurance companies to consider your credit when determining rates.
• Increase your deductible, which will lower your premium but result in higher out-of-pocket expenses if you need to file a claim.
• Look for discounts offered by your insurance company, such as good student discounts or multi-policy discounts.
• Shop around and compare quotes from different insurance carriers, as rates can vary significantly.

You can cancel your policy by calling your agent

If you're unhappy with your American Family Insurance policy, you have the option to cancel it. There are a few steps you can take to do this, and it's a good idea to understand the implications of cancelling so you can make an informed decision.

Firstly, review your policy details and consider whether you need to make any adjustments. If the reason for your cancellation is related to cost, coverage limits, or available options, it may be worth giving your agent a call to discuss potential alternatives. They can help you explore ways to reduce premiums, such as lowering coverage limits or removing optional coverages. American Family Insurance is always working on new offerings, so your agent may be able to suggest a more suitable option.

However, if you still decide to cancel, the easiest and most convenient way is to call your agent directly. You can use the American Family Insurance agent locator to find their contact information. Alternatively, you can contact the customer care centre at 1-833-381-1155, and they will either direct you to your agent or submit a cancellation request form to your agent on your behalf.

It's important to remember that once you cancel your policy, you will no longer have the same level of financial protection in the event of an accident. American Family Insurance offers various coverage options, including collision insurance, which can protect you from expensive repairs, and uninsured motorist coverage, which can be crucial if you're in an accident with an uninsured driver.

Before making a decision, carefully consider your insurance needs and the potential consequences of being uninsured. If you're unsure, you can always connect with your American Family Insurance agent to review your policy and explore alternative solutions. They are there to help you fine-tune your coverage so you can protect what matters most.

Collision insurance covers repairs and replacements

When it comes to repairs, collision insurance will pay to fix your vehicle to its previous condition, minus your deductible. In the event that your car is totaled, collision insurance will cover the actual cash value of your vehicle, minus your deductible. This can be extremely helpful in mitigating the financial burden of repairing or replacing your vehicle after an accident.

American Family Insurance, for example, offers support to customers who have been in accidents, helping them navigate the claims process and get things back to normal as quickly and smoothly as possible. They also offer deductible recovery, where they work with the at-fault driver's insurance company to reimburse the customer's deductible.

While collision insurance is not required by law, it is often required by lenders if you are leasing or financing a vehicle. Even if you own your vehicle outright, collision insurance can provide valuable peace of mind and financial protection in the event of an accident.

You can lower your premium by reducing coverage

While having a good driving record is one of the best ways to keep your auto insurance costs down, there are other things you can do to lower your premium. One way is to reduce your coverage.

Reduce coverage on older cars

If your car is worth less than ten times the premium, purchasing collision and/or comprehensive coverage may not be cost-effective. Collision coverage protects you in an accident that's not your fault, while comprehensive coverage is for damage caused by acts of nature, vandalism, theft, or fire. You can consider dropping these coverages on older cars and instead opt for liability-only coverage. However, make sure you have enough coverage to protect yourself financially if you're found at fault in a crash.

Reduce policy limits

You can also save on car insurance by lowering your policy limits. This means you will have less coverage in the event of a claim, but it can result in lower premiums. Just be sure to comply with your state's insurance laws and any coverage requirements from your lender or lessor.

Drop unnecessary types of coverage

Another way to reduce coverage is to drop any types of coverage that you don't need. For example, if you own an old car that isn't worth much, you might consider dropping collision and comprehensive coverage, as mentioned earlier. Or, if you have rental car coverage through a credit card or other source, you may not need that particular coverage from your auto insurance policy.

Bundle your insurance

While this doesn't directly relate to reducing coverage, bundling your insurance policies can often lead to discounts. Many insurers will offer a discount if you purchase both your homeowners and auto insurance from them, or if you insure multiple vehicles with the same company. However, it's still a good idea to shop around and compare rates, as you may find a better deal by purchasing insurance from different companies.

Frequently asked questions