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Can You Cancel a Car Insurance Claim?

Car accidents are stressful situations. It’s not always clear in the moment what steps you should take and some decisions may be difficult to make. If at the time of your accident, you did the wise thing and informed your insurance company about what had happened, but now you have reasons to wish that you hadn’t at that time, can you cancel an Indianapolis car insurance claim? The short answer is yes, you can. There are, of course, one or two conditions that you need to be aware of, which will be discussed below. 

Why Would You Want to Cancel a Car Insurance Claim?

After the dust has settled and the adrenaline has died down, you may find yourself regretting filing a claim with your insurance company. The good news is it’s not too late, but why would you want to cancel a car insurance claim? The most common reasons are all practical and most are money-related:

  1. It isn’t worthwhile to make the claim.
    • You may have received the estimate for how much it will cost to fix your car and realized that it is close to the amount of your deductible. The average deductible is $500, but many people lower their car insurance premiums by taking a higher deductible, like $1,000. If the difference between the repair cost and the deductible is negligible, it probably doesn’t make financial sense to make a claim.
  2. You may realize that it is possible to fix your car yourself, as the damage is relatively uncomplicated.
  3. You may not want to lose your good driver discount.
    • Many car insurance companies offer reductions in rates or discounts after you have been a safe driver for five years. Obviously, do the math very carefully to see if this is worthwhile.
  4. You may be concerned that your insurance premiums will go up if you make a claim.
    • Just know that this is not always the case. If you are the at-fault driver, you will likely see an increase in rates by an average of 28% according to one study, and by an average of 50% according to another study. 
    • However, if you were not at fault, your rates may not increase, and certainly won’t increase until the time of your renewal. The average increase, in this case, is 4%, but find out about your policy specifically before canceling your claim for this reason; you may have accident forgiveness.
  5. You may not be able to afford to pay your deductible.
    • If you cancel your claim and put off repairs, you will not be able to claim at a later date, so it will end up costing you more, in the long run, to get your car back in shape.
  6. You may not want the claim to show on your driving record.
    • Be aware that accidents don’t remain on your driving record for the rest of your life. Most insurance companies drop them from your record within 3-5 years.

How to Cancel a Car Insurance Claim

There are a few stipulations if you decide to cancel a car insurance claim:

  • You will not be able to cancel your claim if you were the at-fault driver in the accident.
  • If you were not the at-fault driver, you are within your rights to cancel your claim.
  • The sooner you cancel your claim, the better.
  • You can even cancel your claim if you have received a check from your insurance company as long as you haven’t yet cashed it.
  • In some cases (this depends on the insurance company) you may be able to cancel a claim even if you have cashed the check as long as you reimburse the money to the company.

If canceling a car insurance claim is something you want to do, call your insurance agent and ask if it is possible. They will be able to offer you the best guidance.

Let a Car Accident Attorney Answer Your Questions

If you are facing medical bills and missed work after a car accident and the at-fault driver’s insurance company is offering lowball settlement offers, you may need to consult with a personal injury attorney.

The Indianapolis car accident attorneys at Crossen Law Firm have years of experience negotiating with insurance companies and going to court to fight for fair compensation for our clients.  Our contingency fee pricing means you pay nothing unless you win a settlement. Call us at 317-401-8626 for a free consultation. Or contact us online.