Can I Cancel a Car Insurance Claim?

Even though nobody likes to get in car accidents, the whole point of having auto insurance is so that you can file a car insurance claim if you do get into one. Most claims go all the way through to payment, but what if you think twice about your claim once you've filed? Is it possible to cancel a claim you no longer want to pursue?

 

The General Rule

 

Generally speaking, yes, you can cancel a car insurance claim. As Autoinsurance.org points out, providers are willing to do this because it means they have to pay out less money. That means there are more funds available to go to another customer if needed, or that the company is able to make a little more money. The caveat here, though, is that you usually cannot be the at-fault driver. If you caused the accident, then in most cases, you will be held liable for damages and injuries, and your insurance company legally will need to pay. You might need to let the insurance company finish their investigation of the accident and let yourself be cleared of fault before your provider will proceed with cancellation.

 

Why You Might Cancel

 

Sometimes, once a policyholder has gone to a few appraisers or mechanics, he realizes that the expense is extremely close to what he's set as his policy excess (deductible) amount. He might decide that it's better to just absorb the costs and pay out of pocket than to finish the claim, as he really wouldn't gain much from the insurance company's payout and might face an increase in his premiums. Another big reason people cancel claims on their auto insurance is that they discover a bit late that the other parties' insurance will cover their expenses.

 

Cancelling the Claim

 

With some insurance companies, canceling is as simple as getting on the phone and talking to a representative, who will go ahead and process the cancellation for you. At other companies, you must contact the company and fill out a hard copy or online cancellation form. With technology advancing, some companies even allow you to manage your claim, including cancellation, through the mobile version of the company's website or a mobile app. Although each of these methods has its advantages, experts often advise that, no matter which you choose, you make sure that the insurance company sends you a formal, written notice, either through email or regular post, that confirms your cancellation.

 

If your insurance provider already has issued you a cheque, you often can simply return it and tell the company you don't plan to cash it. If your company has a local office, you can stop in to do this, but again, make sure you get something in writing that says you've returned the cheque and have cancelled the claim. If you've deposited the cheque and then changed your mind, you still might be able to cancel, but you'll need to contact the insurance company and see what their policy is about returning the funds. They might accept a cheque from you in the same amount as the one they issued.

 

What to Expect Next

 

After you've contacted your insurance company, representatives still will note that you filed your claim. Even so, they will note the payout value as £0. For this reason, in the insurance industry, it's more accurate to say that the claim was closed without payment, rather than to say you cancelled the claim.

 

Understanding that the insurance company lists your payout value as nothing, there is no good reason why it should raise your premiums. The company has not provided any money, you have not proven you are a higher risk (remember, you can only cancel a claim if you're not at fault) and there's no real evidence that your coverage needs have changed. If your company wants to hike your rates simply because they have to make a £0 note in your record, search for a new provider.

 

Conclusion

 

Assuming that you are not at fault in an auto accident, it is usually possible to go ahead and cancel a claim you've filed, although representatives from your company would say what you're technically doing is just closing the claim with a £0 payout. There are a handful of very good reasons why you might want to go through this process. You typically can cancel without issue until you deposit the payment. Some companies will even work with you after that point. If you're not sure what your provider allows, call and ask.

 

Wanda Thibodeaux appreciates the need for getting all of the right information together when you need to make a car insurance claim. For more information on how to make a successful claim check out the free advice on the uSwitch.com website.