In the United States, the importance of having car insurance is as important as the possession of vehicles themselves. Sos, when you purchase a car, you will also need to have a car insurance policy. That’s just the law of the land.
Suppose that while driving, you crash your car into another vehicle. In this instance, your car insurance would provide coverage for the damage that occurs.
If this is your fault, you can get liability coverage. To get coverage, you will have to file a claim to your car insurance.
But, is it possible to cancel it? This article will answer the question as to whether you can cancel a car insurance claim and more about this process.
Can you Cancel a Car Insurance Claim?
In short, certain claims can be canceled, while others cannot. Whether or not you can cancel a car insurance claim depends on a few key factors. Let’s explore them here.
First, it is important to know that there are two types of options when it comes to car insurance: first-party insurance and third-party insurance.
First-Party Car Insurance
In first-party car insurance, you can file a claim against your own car insurance. This means you pay your insurance premium directly to your insurance provider, and likewise claim benefits directly. In other words, if your vehicle is damaged, you can make a claim with your provider who will settle the claim amount.
This is also called a “comprehensive car insurance policy.”,
Car insurance coverages that are first-party are:
- Comprehensive coverage
- Collision coverage
- Towing
- Medical coverage
- Personal Injury Protection (PIP) coverage
Third-Party Car Insurance
In contrast, in third-party car insurance, you can only file a claim after getting involved in an accident involving other car drivers, cyclists, or pedestrians. Then, the provider pays on behalf of the first-party who caused the damage.
Some third-party car insurance coverages include:
- Body Injury Liability
- Property Damage Liability
Which Type of Claims Can be Canceled?
First-person car insurance coverage claims can be canceled after they are filed. However, you cannot cancel a third-party car insurance claim after it was filed.
Examples of situations in which you can cancel your first-person car insurance claim are if you:
- Crash into your property, and your car is dented
- Reverse your car, and it is scraped by something hanging out of a nearby vehicle
- Injure yourself while driving, but there are no other vehicles involved
It is more complex to cancel third-party car insurance coverage claims.
Suppose that you crash with another car and driver. If the other driver is at fault, then you file a claim against them. In this case, you can also reverse the claim you filed against the driver.
But, if you are at fault, then the other driver can file a claim against you, and you cannot cancel the claim if it was filed against you.
At-fault accident laws vary on a state-by-state basis. Generally speaking, you can cancel a car insurance claim that you filed if you have not yet signed any paperwork to settle the claim.
In conclusion, whether you can cancel a car insurance claim depends on whether it was filed against you or if you have filed the claim.