Can You Cancel An Insurance Claim?

Key Points:

• You can usually cancel a car insurance claim by contacting your insurance provider.
• You may decide to cancel a claim if the damages are small and you want to avoid a rate increase on your policy.
• Once a claim has been filed, it will likely stay on your record even if you decide to cancel it.

When your car is damaged, your first instinct is probably to contact your car insurance provider and file a claim. But if you decide that the disadvantages of filing a claim outweigh the advantages, can you change your mind?

Yes, generally you can cancel an insurance claim by simply contacting your insurance provider. You may want to cancel a claim to prevent your premiums from rising, especially if the damages are low and you can cover costs yourself.

In this article, we’ll explore the pros and cons of canceling a claim and explain what you should know about the process. We’ll also provide recommendations on a few of the best car insurance companies in the nation.

Can You Cancel A Car Insurance Claim After Filing It?

Yes, most auto insurance providers will allow you to cancel some types of claims–comprehensive and collision claims, for example–after filing. 

Liability claims, on the other hand, may not be cancelable once filed. Liability claims pay for damages to other drivers and their property when you’re found to be at fault for an accident. As such, liability insurance claims typically can’t be canceled. Additionally, if you file a claim with another driver’s insurance for damages they caused, that claim will not be cancelable either.

If you cancel a claim, keep in mind the incident will likely still be attached to your driving history for a set amount of time–even if you weren’t at fault and even if the claim was never paid out. Whether your insurance rate increases will depend on your auto insurer and how it decides to handle your particular situation.

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When Should You Not File A Car Insurance Claim?

To avoid the hassle of canceling a car insurance claim or the risk of your premium going up, it’s best to carefully consider your options before filing a claim.

Below are a handful of scenarios in which it might be best to avoid filing a claim in the first place:

• The damages are equal to or below your deductible amount. If the total cost of the repairs will be less than the amount of your deductible ($1,000, for example), it may be smart to skip the claim and pay for the damages out of your pocket.
• You want to avoid a rate increase. If you want to avoid having your premiums go up–and you have enough money to cover the cost of all repairs–you can avoid filing a claim. Depending on the total cost of the damages, it could be to your benefit in the long run because rate increases can be significant and last for three to five years.
• You want to keep your good driver and claim-free discounts. Just like rate increases, discounts can also add up quickly. You could save money in the long run if you choose to pay for the repairs yourself and keep your discounts active.

Most auto insurance companies will increase your rates after you file a claim. How much your company increases your premium depends on the specifics of your auto insurance policy. If you were at fault for an accident, your auto insurance rates will almost certainly rise. But even if you weren’t at fault, you could still see a rate increase following a claim.

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How Do You Cancel A Car Insurance Claim?

The best way to cancel a claim is to contact your claim representative. They will be able to help you weigh the pros and cons of canceling and might also have some insight into how much all the repairs are likely to cost.

If you’ve already been paid out for the claim, you might still be able to cancel it if you haven’t yet deposited the check. Again, you’ll need to talk to your claim representative to find out.

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Can You Cancel A Car Insurance Claim?: Our Take

While you can cancel a car insurance claim, the incident will likely still appear on your driving record or insurance history. Insurance companies use claims histories to assess risk and assign rates. So even if the claim has been canceled, it will be registered as a driving incident and could stay on your record for a number of years. We recommend considering your options carefully before filing a car insurance claim. That’s always your best bet for holding onto your discounts and keeping your rates low.

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Recommendations For Car Insurance

We reviewed car insurers across the country to determine which companies offer the best rates, coverage, discounts, and services. Below are a few of our top recommendations. But the smartest thing to do when trying to find good car insurance is to shop around and compare coverage and car insurance rates.

Progressive: Best For Usage-Based Insurance

We gave Progressive car insurance 4.5 stars out of 5.0 because of its affordable coverage options, reliable reputation, and opportunities for discounts. We think Progressive is an especially good option for young drivers and those with poor driving records.

Progressive discount options include the Snapshot^® safe driving app, a deductible savings bank, and policy bundling. The company has an A rating from the Better Business Bureau as well as a long-established reputation for protecting customers and paying claims.

Read more: Progressive insurance review.

USAA: Best For Military Members

USAA is a great choice for active and retired military members and their families. The company has some of the most competitive prices and highest customer satisfaction ratings in the industry.

We give the company a solid 4.5 stars out of 5.0 based on its affordable rates, wealth of coverage options, and stellar commitment to customer service. Additionally, USAA continually performs well in J.D. Power car insurance consumer studies and AM Best gives the company an A++ financial strength rating.

Read more: USAA insurance review.

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Can You Cancel A Car Insurance Claim?: FAQ

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How We Rate Auto Insurers

Our review team extensively researches auto insurance providers to deliver informed and unbiased assessments of leading companies. We evaluate several key rating factors that are important to consumers to determine which providers are the best in the industry:

• Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
• Availability: Insurance companies that offer wider availability to consumers in terms of state availability and few eligibility requirements are more likely to meet consumer needs.
• Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
• Pricing: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
• Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer a smooth experience.
• Technology: Providers with an online quote tool, easy-to-use claims app and a usage-based insurance app score best in this category.

*Data accurate at time of publication.

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