When your car or property gets damaged or stolen, you can file a claim with your insurer but Can You Cancel an Insurance Claim if you change your mind? The answer to this question will be provided in this article. So, keep on reading.
Can You Cancel an Insurance Claim
Yes, you can cancel an insurance claim if you want to. Most Insurance companies allow their clients to cancel a claim after they have filed it. Even if you have received the payment cheque from your insurer, you can still cancel the claim as long as you have not cashed it out.
If you filed an auto insurance claim, you cannot cancel it if you are the cause of the accidents. With this, you need to be certain you are not at fault.
Can You Cancel an Auto Insurance Claim
Whether or not you can camel a car claim depends on the situation at hand. If you are the at-fault driver, you cannot cancel it. this means that there is nothing you can do if the other driver makes the claim against you with your insurer.
Maybe you filed a claim before getting the cost of repair from the mechanic. If you observe that the deductible is quite high compared to the compensation you will be receiving from your insurer and the repair cost, you can choose to withdraw the claim.
You will be allowed to withdraw it as long as you are not the at-fault driver. Even if the process has begun.
Can You Cancel a Home Insurance Claim
This is a good question to ask after you have filed a claim with your damaged or burgled home. If you change your mind, you will be allowed by your driver to withdraw it and this depends on the timing.
If the process has not again, you can quickly withdraw it. However, some insurers may not give you the opportunity to withdraw it after the process has begun.
How to Cancel Insurance Claim
Withdrawing a claim is not a difficult thing to do and is also free. Some companies will even offer to do it online for you. The first thing to do is to contact a representative of your insurer.
If you filed the claim by yourself, it will be cancelled immediately depending on the timing. If you have already received the compensation cheque, it will take the company a few days to receive the cheque when you mail it back.
After this, it will be withdrawn. You should know that the claim will still reflect on your record and will be registered as a zero-dollar claim.
What Happens When you Withdraw an Insurance Claim
When you cancel a filed claim, your insurer will not mail you a compensation cheque or pay for medical bills and other repairs. Although, a Zero Dollar claim will be reflected on your file. Some insurers may likely increase your Premium rates but this is rare.
When Should I Withdraw My Insurance Claim
Imagine if the repair cost for your damaged vehicle is $500 and you will be required to pay a deductible of $450. With this, you will be left with only $50 to repair your car. In this case, it is wise you withdraw your claim.
You are advised to do so when the repair cost is something you can cover on your own. Also, a claim increases your premium rates and may lead to the cancellation of your policy. You wouldn’t want this to happen to you. hence, you should contact your insurer to cancel a claim if it’s not worth it.