There are a number of reasons why you might want to cancel an auto insurance claim. You might not want a claim to appear on your record, for example. Or, you may decide a minor accident just isn’t worth the hassle.
Can you cancel an auto insurance claim? Is it possible to withdraw a claim after it has been filed? Today, we’re explaining everything you need to know about canceling an auto insurance claim.
Yes, But the Claim Will Still Be On Your Record
First, let’s establish something: it’s always an option to cancel an auto insurance claim. However, the incident and the attempted claim will still be on your driving record.
Any time you file an insurance claim, even if you cancel that claim in the future, that claim will be listed on your driving record. It’s listed on your CLUE report, which means all future insurance companies will be able to see it. However, since the payout is also listed as $0, this canceled claim is unlikely to affect future insurance rates.
Nevertheless, by canceling a claim, you may be able to avoid future rate increases. A car insurance company might raise rates after you make a claim. If you cancel that claim, the claim will still be on the driving record, but since you were never paid out, it is unlikely to affect future insurance rates.
Insurance companies generally make it easy to cancel a claim. By canceling a claim, you’re allowing the insurance company to avoid paying out. Instead of paying $2,000 for car repairs, the insurance company pays $0 on a canceled claim. For this reason, most insurance companies allow you to easily cancel car insurance claims.
Reasons to Cancel an Insurance Claim
There are a number of reasons to cancel an insurance claim. In many cases, it’s in a driver’s best interest to cancel a claim. Some of the reasons to cancel a claim include:
- You cannot afford your deductible
- You want to avoid future rate increases
- You want to maintain your safe driving record or maintain a claims-free discount from your insurer
- The cost of repairing the vehicle is approximately the same as your deductible
- You discover that you can complete the repairs yourself for minimal cost
Generally, the main reason to cancel an auto insurance claim is to prevent your insurance premiums from increasing. A single claim can wipe away years of clean driving history. Insurance companies like to reward drivers who have a long history of never making a claim. If you make any claim on your insurance – whether it’s a major or minor claim – your insurance company might take away your discount. Drivers with claims on their record will pay more for car insurance than drivers with a clean record.
Other people decide to cancel a claim when they discover the cost of repairing the vehicle is less than they think. If your deductible is $500 and it’s going to cost $550 to repair your vehicle, then it’s generally in your best interest to cancel the claim, pay for repairs out of pocket, and avoid higher insurance premiums in the future.
On the other hand, there are some situations where it’s a bad idea to cancel a claim. If your car has substantial damage, for example, and requires thousands of dollars of repairs, then it’s generally in your best interest to make a claim. That’s what insurance is for. Even if you lose your safe driving discount or claims-free discount, you’ll come out ahead because the insurance company is paying for the full costs of repairing your vehicle.
How to Cancel an Auto Insurance Claim
Generally, canceling an auto insurance claim is easy. You may be able to cancel a claim simply by calling your car insurance company.
When you cancel an auto insurance claim, the insurance company records it as a claim in their records and in your driving records, although the amount of money paid for the claim is listed as $0. Theoretically, it will have no impact on your insurance premiums going forward.
Even if you have already received a check from your insurance company, you may still be able to cancel a claim. The insurance company will not force you to deposit their check. Simply contact your insurance company and tell them to cancel the claim. Send the check back.
Will My Insurance Premiums Increase After I Cancel a Claim?
Insurance companies love it when drivers cancel claims. If you have $0 of claim payouts on your insurance record, then you have delivered pure profits to your insurance company. That’s why having a $0 claim on your driving record is unlikely to hurt you. Insurance companies should not raise insurance premiums after a canceled claim.
You may hear stories about insurance companies raising rates after a canceled claim. If an insurance company tries to do this, then it may be a good idea to switch providers. Not all insurance companies treat canceled claims equally.
Conclusion: Yes, You Can Cancel an Auto Insurance Claim
Most insurance companies appreciate it when customers cancel an auto insurance claim. It means the insurance company doesn’t have to pay out. Yes, you can cancel an auto insurance claim. Contact your auto insurance provider today to cancel your insurance claim.