Filing an auto insurance accident claim helps pay expenses you need to repair damage on your car. That’s a primary reason for having car insurance, but it could cause an increase in your insurance rates. You can cancel an auto accident claim if you are not at fault for the accident. Call the insurance company immediately after you change your mind. The claim usually has to go through the claims process before it’s cancelled, depending on when you notify your insurance company.
Motorists don’t like claims showing up on their driving record because it causes insurance rate increases. Even a cancelled claim goes on your record, but it doesn’t usually cause a hike in your car insurance rate or affect finding affordable insurance in the future, because the claim shows no benefit was made. Insurance companies normally consider you a low risk if your record shows no money spent on repairs for your claim.
There's a chance that an insurance company could raise your rates even if no payment was made. If this happens, you should look for another insurance company. Shopping around for insurance can lower your rates and provide better coverage. Car insurance companies have their own particular formulas as they determine risks when insuring motorists. A quality company most likely would look at the cancellation in your favor and want to keep you as a customer, especially if you have a good driving record.
Avoiding Deductible Payment
Sometimes it's worth paying for repairs yourself without using your deductible. You agree to pay a deductible amount for any repairs when you buy a car insurance policy. In the event of an accident, you pay the deductible amount and the insurance company pays the remaining amount. A high deductible amount keeps your monthly premiums low. You might file an accident claim immediately after an accident. Later, you realize that repairs cost less than the deductible or a little bit more, which you could handle without risking insurance rate hikes. If you have a $500 deductible and repairs cost $600, the $100 from the insurance company likely wouldn’t be worth the increase in monthly premiums over time for filing the claim.
Returning a Check
You could receive a check from the insurance company before you have had time to think the claim over. If you decide you don’t want to make the claim because you can afford the payment yourself, it’s still not too late to notify the insurance company. Call the insurance company to return the check. The process is not completed until you cash the check or deposit it into your bank account. Even at that point, you can still call your insurance company to ask about canceling the claim and returning the check or money. Insurance companies differ on how they handle cancellation issues.
Jerry Shaw writes for Spice Marketing and LinkBlaze Marketing. His articles have appeared in Gannett and American Media Inc. publications. He is the author of "The Complete Guide to Trust and Estate Management" from Atlantic Publishing.