Can I Cancel an Insurance Claim Under Investigation? There are many reasons why you might want to cancel your insurance claim if it is under investigation. One of the major reasons is if you have committed a fraudulent act by filing the claim in the first place. In this article, we are not here to judge. We are simply here to give you an answer to the question, which is: Can I cancel an insurance claim under investigation?
So many people often wonder why an insurance claim gets investigated before the company pays out a settlement. When you know that you are a sincere person and a truthful one, why should your insurance claim be investigated? The insurance claim investigation is just a process of paying out your claim settlement. It doesn’t mean that you are not a trustworthy person.
So today we will learn the answer to the question of whether it is possible to cancel an insurance claim while it is being investigated. If this sounds like what you are interested in, let’s go ahead and jump in.
Can I Cancel an Insurance Claim Under Investigation?
Whether or not you have committed fraud when filing your insurance claim, you can simply cancel it even when it goes under investigation. Therefore, the answer is “yes.” It is very much possible to cancel a claim that is under investigation. Many insurance companies always allow the option of claim cancellation for many reasons, mainly for the drivers at fault.
Can I still be charged with fraud if I withdraw my insurance claim?
If you have committed a fraudulent insurance activity by filing a claim that is false, you have the option to simply withdraw or cancel the claim. The major reason is that you are definitely going to get caught, so you should simply cancel the claim when it goes under investigation.
Cancel the claims that do not get settled. However, if the investigation has gone far enough and the company discovers it is a fraudulent claim, you might still get charged. So the answer is that you can still cancel your claim and still get charged for fraudulent activities.
Why are car insurance claims investigated?
Auto insurance claims are always investigated. One of the major reasons for doing so is that an accident might involve multiple vehicles, in which case somebody must be at fault. When you are at fault after an accident has occurred, your car insurance rates are definitely going to go up because your insurance company will cover the damages.
Why do Car Insurance Companies investigate claims for fraud?
In addition to investigating a claim to determine who is at fault, insurance companies also investigate a claim if it is fraudulent. The reason why insurance companies investigate claims of fraud is that they are in the business of making money, not a charity organisation. Therefore, they have to be sure that the claim is a real one and not a scam so that they don’t lose money.
What Happens When an Insurance Company investigates a claim?
When you get involved in an accident, you should definitely file a claim instantly to have the damages paid for. After the claim is filed, the insurance company investigates the claim to know who is at fault. However, if you hit an unsecured driver, you are definitely going to be paying a lot from your insurance. But if you have the appropriate coverage for your vehicle, you have nothing to worry about other than your deductible.
How do I cancel an Auto Insurance Claim under investigation?
It is very easy to cancel your auto insurance claim after you have successfully fought it, especially if the claim is still under investigation. All you need to do is simply contact your insurance agent and ask them to politely cancel your insurance claim, which they will be happy to hear.
On the occasion that you have already received a check payment, they will request you to mail it back to them, which will take a few days for them to receive it. After your check has been received, your claim will be cancelled immediately. However, it will go on your driving record that you filed a claim.
Will my premium rate go up if I cancel a claim?
Filing a claim means that an accident has occurred, which means that your risk profile with your insurance company will increase. This is what results in insurance premium rates getting increased. But when you cancel your claim, your insurance company has no reason to increase your claim since no money was spent on paying the settlement.
When can I not cancel a claim?
In a situation where another driver is involved in the accident, you definitely should not cancel your claim. Also, if it happens that you are the person who caused the accident in the first place, then you should not cancel your claim. You can also decide to cancel your claim for your own damages; however, he will pay for the damage done to the other driver’s vehicle.
Frequently Asked Questions
Can you retract an insurance claim?
The answer is yes, you can retract a claim for insurance by cancelling it even when the claim is under investigation. If you want to make a claim easily, all you need to do is to contact your insurance company or agent as soon as possible.
What happens if you cancel the claim?
First of all, you’re not going to get paid for the claim, and secondly, it goes into your driver’s record that you filed a claim at one point in time.
Can an insurance company investigate a claim?
Yes, insurance company definitely investigates claims made by their policyholders. The major reason for this is that they are in the business of making money and they are not a charity organisation. Therefore they do not want to make losses and so must investigate the claim properly before paying out a settlement.
Can I cancel an insurance claim under investigation in Australia?
As long as the claim is still under investigation you can simply decide to cancel it. However, if the investigation of the claim has gone far enough and the insurance company report it to the police you might get charged whether you cancel it or not.