Can You Cancel a Car Insurance Claim?

Q: How do I cancel an auto insurance claim?

Most car insurance companies make it easy to cancel claims . You can call your insurer and inform them you don’t want to pursue the claim. Our best car insurance guide provides the contact numbers of some of the best car insurance companies.

Filing an insurance claim is usually at the top of the list after we get into an accident, but there are times when it might not be the best choice. Fortunately, you can cancel a car insurance claim in most situations. The only exceptions are when you’re at fault or if someone filed a liability claim against you.

By Mark Fitzpatrick

Updated: November 21, 2024

Advertising & Editorial Disclosure

Let’s say your car sustains damage from a falling branch. You immediately file a claim, so your policy helps cover repair costs. However, your estimates turn out lower than you expected. Can you cancel a car insurance claim?

Yes, you can. In most cases, you can cancel a claim after filing it. And the process isn’t complicated. You can simply contact your insurer and inform them you’re not pursuing your claim.

However, you cannot cancel your claim if you were at fault in an accident. You also can’t cancel one that another driver filed against you.

Can You Cancel Car Insurance Claims After Filing?
Why You Might Want to Cancel Your Auto Insurance Claim
How to Cancel Your Auto Insurance Claim
Frequently Asked Questions About Canceling Car Insurance Claims

Key Takeaways

You can cancel an insurance claim after filing it. You can even do this after your insurer has issued you a check, as long as you haven’t cashed it.

If you’re at fault, you can cancel the claim for the damages your vehicle sustained, but not the one the other driver filed.

There are several reasons policyholders may decide to cancel claims after filing them. These include not being able to pay the deductible or avoiding higher premiums.

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Can You Cancel Car Insurance Claims After Filing?

Yes, you can generally cancel a car insurance claim after filing it. It’s best to do it sooner rather than later. For example, canceling a claim during an investigation is better because the insurer hasn't made a determination on payment yet.

You can still cancel your claim after your provider issues you a check if you haven’t cashed it. You’ll need to mail the payment back to complete the cancellation.

However, you cannot cancel the claim if you’re at fault in an accident and the other driver files a liability claim against you.

MONEYGEEK FAST FACTS

You can still cancel your claim after your provider issues you a check if you haven’t cashed it yet.
You’ll need to mail the payment back to complete the cancellation.
You can’t cancel a claim if you’re the driver at fault.
You cannot cancel a liability that another driver has filed against you.

Can You Cancel a Total Loss Claim?

You can cancel a car insurance claim in most situations. These include when your car is considered a total loss after an accident or due to other types of damage. You shouldn't encounter challenges if you decide you don't want to pursue the claim anymore.

Why You Might Want to Cancel Your Auto Insurance Claim

A car insurance policy ensures you’re protected on the road and can help cover damages after a covered incident. However, there are several reasons why you may choose to cancel an insurance claim after filing it.

1
The difference between your deductible and repair costs is negligible.
You’ll have to pay a deductible each time you file a claim before your policy begins covering your expenses. Let’s say your deductible is $500, and your total repair cost is $525, which means your policy would only cover $25. If your deductible costs nearly as much as your repairs, you might be better off paying everything out of pocket.
2
You can’t afford your deductible right now.
Policyholders typically choose a higher deductible because it results in a lower premium. However, your financial situation may not be ideal when your vehicle is damaged. Your repairs may be delayed if you can’t pay your deductible. You might choose to cancel your claim and deal with the repairs later.
3
You’re trying to avoid a rate increase.
Filing a claim means insurers could consider you riskier to insure and may result in a higher premium when you renew your policy. Insurance providers assume that drivers that have filed claims are likely to file more in the future. Having plenty of claims can raise the average cost of car insurance for your driver profile. Canceling a claim won’t prevent an incident from showing up on your driving record, but it won’t change your risk profile, so your rates won’t be affected.
4
Paying for repairs out of pocket is more affordable.
Sometimes, your repair costs turn out to be cheap. If they’re lower than your deductible, you might want to pay for everything out of pocket and cancel your claim.
5
You currently qualify for a safe driver discount.
Most insurers offer discounts to drivers who remain claim-free. For example, GEICO offers up to a 22% discount if you don’t file claims for five consecutive years. If you pursue your claim, you won’t qualify for a safe driver car insurance discount anymore.

How to Cancel Your Auto Insurance Claim

The process of how to cancel an auto insurance claim isn’t complicated. You can contact your car insurance representative and let them know you want to discontinue the claim. Doing so saves your insurer from covering the cost of your damages, which works in their favor, too.

Auto Insurance Hotlines

USAA: 800-531-8722
GEICO: 800-207-7847
Travelers: 866-248-9970
State Farm: 800-782-8332
Farmers: 888-327-6335
Progressive: 888-671-4405
Nationwide: 877-669-6877
MetLife: 800-422-4272

Frequently Asked Questions About Canceling Car Insurance Claims

There may be some confusion about how to cancel a claim, so we’ve gathered the most commonly asked questions to help you navigate the process.

Can I cancel car insurance claims?

In most situations, yes. You can cancel a car insurance claim you filed previously. You can even withdraw it after receiving a check from your insurer if you haven’t cashed it.

However, your insurer may not allow you to cancel if you are at fault for a car accident. You also cannot cancel a liability claim another driver has filed against you.

How do I cancel an auto insurance claim?

Most car insurance companies make it easy to cancel claims. You can call your insurer and inform them you don’t want to pursue the claim. Our best car insurance guide provides the contact numbers of some of the best car insurance companies.

What happens when you withdraw a car insurance claim?

Canceling a car insurance claim means you won’t receive a check from your insurer. Canceling may work in your favor since it won’t change your risk profile, which can help keep your premium from increasing when you renew your policy.

Can you reopen a car insurance claim?

Typically, you can reopen a claim within five years of the initial one. However, it may be more challenging to do so if you’ve signed an agreement with your insurer.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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sources

GEICO. "Car Insurance Discounts — Savings on Auto Insurance." Accessed June 1, 2022.

Can You Cancel a Car Insurance Claim?

Table of Contents

Key Takeaways

Can You Cancel Car Insurance Claims After Filing?

Can You Cancel a Total Loss Claim?

Why You Might Want to Cancel Your Auto Insurance Claim

The difference between your deductible and repair costs is negligible.

You can’t afford your deductible right now.

You’re trying to avoid a rate increase.

Paying for repairs out of pocket is more affordable.

You currently qualify for a safe driver discount.