FREE Car Insurance Comparison

Currently insured?

Free Car Insurance Comparison

Compare Quotes from Top Companies and Save

Currently insured?

Can I cancel my car insurance after an accident?

Here's what you need to know...
  • Auto insurance is a Property and Casualty policy that protects you against property losses and liability losses
  • If you have an accident, you can file a first-party claim against your policy or a claim with the other company
  • If you have an accident, you must have active coverage at the time of the loss to report a claim
  • Companies must honor claims as long as the policy was active on the date that the accident happened
  • If your car is totaled and you don’t have a new one, you can cancel your insurance and still get your settlement

As a child, you quickly learn the importance of having auto insurance when you’re playing the ever popular game called Life. This game shows and proves that you never know when you’re going to get into an accident.

If you draw the card saying you’ve had an accident, you better hope that you chose to buy insurance when it was offered. If you didn’t, you’ll lose a lot of the money that you’ve saved and could even go bankrupt.

Life might just be a game, but it teaches young players a very important lesson. You don’t just have to buy insurance, you need to buy insurance.

Compare car insurance companies side-by-side today and see how much you could save. Enter your zip code above to begin.

If you get into an accident, knowing how your insurance works after you file a claim could make all of the difference. Here’s what you need to know about how to handle your policy after an accident:

When should you file a claim for benefits against your auto policy?

AdobeStock_53662132-1600x1600If your car has a small scratch or you have a dent from a runaway rock flying through the air, you might not need to file a claim for benefits. You can either pay to repair the minimal damage on your own or you can live with the fact that your car will get bumps and bruises over time.

It’s when you have an accident or you discover significant damage that you should consider filing a claim with your carrier. You can only file a first-party claim against your policy when you have first-party coverage.

If you have only a basic policy with liability coverage, you can’t request benefits under your insurance but you should still tell your insurer about the accident to protect yourself.

What happens if another driver is at fault for the accident?

If you crash and you’re not at fault for the accident, you will file a third-party claim against the other party’s insurance.

Instead of contacting the other driver’s company directly, you should call your agent and give the claims department the details. After you file the claim on your end, your adjuster will communicate with the other carrier.

Your claims adjuster will compare your statement to statements made by other drivers involved. After everything has been investigated, the fault decision will be made on both sides. It only drags a claim out when the companies can’t agree on the fault determination.

If you’re not at fault for the accident, you’ll collect on the following coverage options:

  • Bodily Injury Liability
  • Property Damage Liability

Free Car Insurance Comparison

Compare Quotes From Top Companies and Save

Currently insured?

Your Policy Must Be In Force At the Time of the Accident

If the insurance company finds that you’re more than 50 percent at fault for the accident, you can’t file a claim as a third-party claimant. You’ll have to collect against first-party coverage options if you want to recoup for your financial loss.

Some of the coverage options that you can collect against include:

  • Comprehensive – pays for your vehicle repairs after a fire loss, a theft, a flood loss, or another non-moving peril
  • Collision – pays to repair or replace your car after it’s damaged while your vehicle is being operated
  • Medical Payments – pays for your medical bills if you’re injured in a vehicle-related accident
  • Uninsured Motorist Protection – pays for your medical bills and rehabilitation costs when someone who doesn’t have insurance hits you

As long as your policy is in effect on the day of the loss, your insurer is obligated to pay out benefits to you. Your policy could be set to cancel in the upcoming days or it could be paid in full and you’ll receive the same amount of money under the policy either way.

Can you request that your policy is canceled after you file an accident claim?

AdobeStock_53649099-1600x1600If you’re not happy with the way that your claim is handled or you don’t have a need for coverage any longer, you have the right to request that your policy is canceled. It makes a lot of sense to cancel your insurance when the car on the policy is totaled and you don’t plan on buying a new car.

There’s no sense in paying to insure a car that you’re selling to the insurer after it’s totaled. While this is a scenario where you should cancel your policy, it’s not always advisable to cancel your coverage while the claim is still being reviewed.

Many experts recommend staying with the same carrier until the claim is closed just so that there aren’t any unreasonable delays.

Know the Consequences of Canceling Your Insurance Early

adobestock_38113283-1600x1600Your accident claim will be covered regardless of what you decide to do with your policy. Having your claim paid in a timely manner isn’t the only thing you have to worry about.

Here are some of the consequences that you should be aware of before you cancel your insurance after an accident:

  • You legally have to keep insurance on your car until you sign it over to the insurer (even if it’s a total loss)
  • If you cancel insurance on your car and it’s still in your name you could be fined by the DMV
  • If you still drive your car and you don’t have insurance you could be cited or have your car impounded
  • If you have a lapse in coverage, your future insurance rates could go up

You have the right to cancel your insurance at any time. You can even cancel your policy after an accident without it affecting your claim. There are still consequences to be aware of.

If you want to switch carriers, know the consequences of terminating your coverage before you shop around for better policies online. Use our free quote tool to start comparing coverage from top insurers.

Copyright © 2018 · All Rights Reserved · Car Insurance Comparison · Terms & Conditions · About Us · Privacy Policy · Contact Us · Site Map · Resources

Currently insured?