Cancelling insurance claim

Cancelling an insurance claim means a policyholder withdraws their request for coverage after submitting it to the insurer. Policyholders can cancel auto, home, or health insurance claims before the insurer finalizes payment or repairs.

Insurers process cancellations if no payout or service has started, like Progressive allowing claim withdrawal via phone or app before adjustment begins. Cancelling does not guarantee removal of the record from databases such as CLUE, which tracks home and auto claims for insurers like Allstate and State Farm, per a report from YourInsurance.info.

Policyholders must contact their adjuster directly to ensure cancellation processing; emails alone do not always suffice. Cancelling an active claim typically prevents any deductibles from being charged, provided no inspection or payment occurs.

Insurers sometimes use cancelled claim counts in underwriting decisions, as seen with LexisNexis Risk Solutions analytics. Some states restrict cancelling liability claims involving third parties, such as bodily injury in Texas auto insurance cases.

A cancelled property damage claim may still affect future premiums, as insurers often assess frequency of submitted claims regardless of resolution. Once a claim is cancelled, reinstating requires filing a new claim since original documentation closes, per GEICO and Travelers guidelines.

Cancelling false or erroneous claims promptly reduces risk of suspected fraud flags in carriers’ internal systems.