How to Withdraw a Car Insurance Claim

How to withdraw a car insurance claim depends on the circumstances. It is best done in writing, that way you have a record of what you told the insurance company.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 26, 2020

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Here's what you need to know...

  • Under certain circumstances, it is your right to retract an insurance claim
  • The best way to withdraw an insurance claim is to do so in writing through a withdraw insurance claim letter
  • When comparing insurance plans, determine which level of coverage you actually need

Can you cancel a car accident claim? You can withdraw car insurance claim in certain circumstances. As long as you haven’t cashed the check you received, it’s usually a matter of informing the insurance company that you have decided to withdraw your claim.

The best way to do so is in writing. That way, you have a record of what you told the insurance company and the date the information was passed on to it.

To make sure that your insurance company receives your request, send your letter by registered mail or courier so that you have a record that it was received.

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When You May Need to Withdraw Car Insurance Claims


If you are involved in a car accident, reporting the event to your car insurance company is the right thing to do.

In a case where you are making a claim for damage to your vehicle, you may not know how much the repairs will cost immediately.

Once the damage is assessed, consider the amount the insurance company’s adjuster gives you in light of your deductible.

If you have selected a high deductible to save money on your premiums and the amount of damage is only slightly above it, you may be better off withdrawing your car insurance claim and paying for the cost of repairs yourself.

In a case where the amount of the damage is $1,200 and your deductible is $1,000, all the insurance company is required to pay on your claim is $200.

You could take the $200, but you will also lose your claim-free status with the insurance company; and any rights to no-claims bonuses. Some car insurance companies do offer one “free” claim before they start raising your rates, but not all of them offer this benefit to their policyholders.

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How to Avoid Withdrawing an Insurance Claim

While you should report an accident to your insurer promptly, it’s a good idea to check your policy documents first. You will find out what your policy covers and which limits and deductible you have.

Keep in mind that the offer the car insurance company makes based on the estimate that the body shop provides is not written in stone. The company is making you an offer to settle your claim, and you are free to accept it (and cash the check) or turn it down.

If the estimate comes in at or close to your deductible, you are probably better off withdrawing the claim and looking after the repairs without involving the insurance company.

Consider Your Car Insurance Coverage Carefully


Car insurance is required for drivers in most parts of the United States. Each jurisdiction determines the minimum level of coverage that drivers must have in place. As long as you buy at least this amount, you are driving legally in your state.

No one wants to pay more than they have to for their car insurance coverage, and increasing the deductible on the policy is a popular way to pay less in premiums.

Before doing so, consider the level you are choosing carefully.

You will want to make sure that you will be able to cover this amount if you ever have to make a claim on your policy.

Consider the average cost of repairing a vehicle in your area and the amount of damage you would have to incur to go over the deductible you are considering.

The other part of the equation when considering car insurance coverage is how much you will be saving by raising your deductible. To find out, get pricing information for different car insurance scenarios. Ask for quotes at varying deductible levels so that you have an idea what they cost and how they work for your budget.

Going online is a fast and easy way to shop for car insurance coverage. You can check out different insurance providers to find out what products they offer, and get to know something about the company itself before you make a decision about where to buy your coverage.

To get online car insurance quotes for coverage, enter your zip code below now!

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