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Drop a insurance claim | How to cancel a claim?

by Paul

I hit the parking rail and scratched the car one day after I added collision coverage. The estimate is almost $4,000, which is more than what the car is worth. The insurance company is sending out SIU (Special Investigation Unit) to investigate the claim.

I wonder if it is possible for me to drop claim now because I do not think the car is worth reparing and do not want my premium to rocket. Thanks"


Hello Paul,

Well, you can make your wishes known and the insurance company might drop the claim. However, the SIU unit usually comes out to investigate fraud. The must be thinking something is up (probably the fact that the damage or collision happened the day after you added collision). The insurance company is definitely raising an eyebrow.

You have nothing to worry about if you did nothing wrong and you probably have evidence that the the car was in good condition when you added the collision coverage (you showed the car to an agent).

The other issue is that if the estimate is more than the car is worth, your car is a total loss. In this case, the insurance company might not be able to "drop" the claim. Some states will require the car to be a total loss regardless if you want to drop the claim or not (safety concerns on the total loss situation).

The answer really depends on your state.

Good Luck,

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