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When your car is damaged, your first instinct is probably to contact your car insurance provider and file a claim. But, can you cancel an insurance claim after you file it–if you change your mind?

Yes, generally you can cancel an insurance claim that you file by simply contacting a representative of 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 them yourself.

If you’re unhappy with your current insurer’s claims process, it may be a good time to shop around and compare rates. After reviewing some of the best car insurance companies in the nation, our team has some recommendations in this article.


Can You Cancel An Insurance Claim After Filing It?

Yes, auto insurance providers will allow you to cancel a claim once you filed it. But once you’ve started the claims process, even if you cancel your car insurance claim, there is no way to remove the claim from your driver record. However, your insurer is unlikely to increase your premiums for a claim with a $0 payout.

One type of claim you cannot cancel is a liability accident claim benefiting another driver. Liability claims are payouts to other drivers after a car accident where you’re at fault. Imagine you accidentally hit your neighbor’s parked car. In that case, your liability auto insurance would pay out damages. You can’t cancel such a claim.


When Should You Not File An Insurance Claim?

Can you cancel an insurance claim? Yes. Why would you cancel an insurance claim? The main reason is to prevent your insurance premiums from going up.

Most auto insurance companies will increase your rates after any time you file a claim. By 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. Even when you aren’t at fault, you can sometimes see a rate increase on your car insurance policy.

Your provider could have a claims-free discount. If that’s the case, you would lose the benefit of that discount after filing.

Most coverage has a car insurance deductible. Lower premiums usually mean a high deductible–and vice versa. Chances are, your auto insurance deductible is at least a few hundred dollars. It could be the case that after paying your deductible, the cost to repair your vehicle is $100. You could have your insurance provider reimburse that amount, but this could increase your rates by more than $100 a year. If you’re able, you’re better off paying the $100 yourself.


How Do You Cancel An Insurance Claim?

Most insurance providers make it easy to cancel an auto insurance claim. There is no cancellation fee for a canceled claim. The best way to cancel a claim is to contact your insurer’s claims department.

Most car insurance companies also allow online cancellations. Check your provider’s website for customer support options. We recommend talking to a claims representative or adjuster if possible, though. Some companies may still increase your premiums even for canceled claims. Always check with your provider.

It’s easier never to file a claim in the first place, but just because you’ve filed your claim doesn’t mean you can’t change your mind. If you’ve already cashed your insurer’s reimbursement check, it may be too late. In some cases, your carrier may let you cancel the claim if you return the money.


Our Recommendations For Car Insurance

Everyone should have a reliable insurance provider that is unlikely to increase rates after canceling a claim. There are a number of reputable options but no one best choice for everyone. The smartest thing to do when trying to find good car insurance is to shop around and compare coverage and car insurance rates.

#1 Progressive: Best Usage-Based Insurance

We rate Progressive car insurance at 4.3 stars 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 is not currently rated by the Better Business Bureau (BBB), but reliably pays out customer claims. If you take the time to explore policy options, you’ll likely find a Progressive rate that is both comprehensive and inexpensive.

#2 USAA: Best For Military Members

You can only sign up for USAA car insurance coverage if you or a family member serves or has served in the United States military. If that applies to you, USAA is a great choice for car insurance. USAA has some of the lowest prices and highest customer satisfaction ratings in the industry.

We give the company a solid 4.6 stars out of 5.0. USAA continually performs well across several J.D. Power consumer studies on car insurance. AM Best gives the company an A++ financial strength rating.

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FAQ: Cancelling Insurance Claims

How We Rate Inusrers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

  • Cost: 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.
  • 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.
  • 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.
  • 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 easy-to-use claims apps.

*Data accurate at time of publication.