After you’ve been injured or had your car damaged in an auto accident, you’ll want to collect compensation from your auto insurance provider.
Before or after paying for your medical and repair expenses, you’ll have to file an auto insurance claim after a covered accident or car collision to begin the payout process.
If you’re reading this, you must have questions about the car insurance claims process after a car accident or collision.
This tell-all guide is here to help you understand when to file car insurance claims, which car insurance company to file them with, how to file, and the bigger picture of auto insurance claims' role in auto insurance.
The good news is that car insurance claims are one of the primary functions of car insurance, so it is easy for a new policyholder to understand.
What is a Car Insurance Claim?
The primary function of a car insurance claim is to notify your car insurance provider that you have been in a car accident or collision so you can access your coverage benefits.
Whose auto insurance company receives the car insurance claim is determined by which driver was at fault in the car accident -more on the importance of fault will be covered in the next section.
For an auto insurance claim to be filed, you will need the names of the drivers involved in the vehicle accident, your car insurance policy number, the other party’s involved car insurance info, car accident details like photos of the accident scene, and a copy of the police report.
From there, the car insurance company will begin an investigation with a professional car insurance claims adjuster, who will decide if they will accept the car insurance claim. If the car insurance claim is accepted, the policyholder will receive the benefits their policies entitle them to. Appeals can also be filed if the auto insurance claim is rejected.
Insurance claims play a role in every type of insurance, like homeowners insurance or business insurance, and they all function the same way.
How Does a Car Insurance Claim Work?
With an idea of what auto insurance claims are, let’s walk through the process of filing car insurance claims after a car accident or collision and the best practices for doing so.
Naturally, the first step is to notify your car insurance company of the information covered in the previous section. Again, the best practice for documenting the car accident is with pictures. Information you should primarily collect is the car insurance claim number you are given and the contact information of the professional car insurance agent or adjuster you spoke to with the initial news of the auto insurance claim after the car accident or collision.
After filing an Auto Insurance Claim, you should do the following steps listed below.
- Request the police report of the auto accident. You will need this because your auto insurance provider will request the car accident report number. Suppose a car accident report still needs to be filed. In that case, you can file an auto accident report at the local police department.
- Be contacted by an adjuster - A professional adjuster from your car insurance company will contact you to share information regarding the vehicle accident and why your car insurance claim should be accepted. They may also ask you to show them your car or take it to a particular auto repair shop for documentation. From there, the professional adjuster will determine who is at fault.
- Receive report from adjuster - The report from the experienced adjuster afterward will include an estimate for the total car repairs, which your car insurance company will now consider when providing payout. You’re almost there!
- Payment is accepted - All left to do is sign the release form acknowledging what your car insurance company offers as the payout for expenses related to the auto accident, like car repairs or towing.
What Information Should be Reported to The Car Insurance Company And Adjuster?
In addition to the photo documentation you may have taken at the scene of the car accident or collision, there are other things you must inform your auto insurance company’s professional adjuster about to ensure a smoother and more efficient payout.
Provide the information to your insurance company adjuster that is listed below.
- The vehicle on your car insurance policy that is subject to the auto insurance claim
- The driver
- Scene of the car accident and time it transpired
- Auto accident description and type of damage
- Other drivers' car insurance and contact information
- Contact information of others who have seen or were involved in the vehicle accident with or without damage
Why Does Fault Matter When It Comes to Auto Insurance Claims?
It’s a common practice of auto insurance in North America for at-fault drivers to cover the damages they cause to others on the road.
It’s the adjuster’s job to determine who was at fault and which car insurance company has to pay for the damage and cost of repairs. Several states have at-fault laws in place to regulate this practice. However, some states may divide the fault between more than one driver if legislation allows it.
Here’s how fault affects car insurance claims and payouts:
- You are at fault - File a car insurance claim with your car insurance company for a payout for the damages you caused.
- You are not at fault - You can file an auto insurance claim with the other driver’s car insurance company. You have the option to use your own auto insurance company as well.
- You are in a no-fault state - You file a car insurance claim and use your auto insurance to pay for your damage and bodily injury.
- You and the other drivers share the fault. Damages can be limited when drivers file a car insurance claim with their respective auto insurance companies.
When Do You File an Auto Insurance Claim Based on Car Insurance Policy?
Fault is one of many significant factors in the car insurance claims process. The type of car insurance policy that you have also plays a role in the auto insurance claim process.
Suppose you’re carrying more than your state’s mandatory minimum liability coverage. In that case, you’ll have to decide what type of insurance claim you’ll have to file, such as a comprehensive or collision insurance claim, to mention a few.
Here’s how the different types of auto insurance correlate when it comes to filing car insurance claims:
- Liability coverage - In car insurance, liability insurance is the foremost and basic coverage you carry because it’s often required by law. When a liability insurance claim is filed, it is done with the at-fault driver’s car insurance.
- Comprehensive coverage - Comprehensive coverage claims are filed when your car is damaged by circumstances other than collision -like criminal or weather damages. Naturally, this is with your car insurance provider.
- Collision coverage - You can file a collision insurance claim if you were found at fault for an auto accident and want your damages covered while your liability coverage pays out. A collision coverage claim can be filed with your car insurance company or the other driver(s) involved. You can also file a collision claim if the fault isn’t apparent enough to cover your vehicle repair costs.
- Uninsured motorist coverage or Underinsured Motorist Coverage- If you find yourself in a car accident or collision with an uninsured driver at fault, you can file a corresponding auto insurance claim to receive a payout for the vehicle damage they cannot cover.
- Personal injury coverage - You can file personal injury claims with your own auto insurance company to receive payouts for your medical bills after a bodily injury in a vehicle accident or collision on the road.
How do Car Insurance Claims Affect Auto Insurance Premiums?
There is a direct relationship between car insurance claims and your monthly premium rates.
A car insurance claim is a notification that you have been in an auto accident. Your auto insurance provider’s response is to increase your insurance rates anywhere from 12% to 50%, depending on how severe the car accident or collision and the car insurance claim were.
Car insurance companies keep an eye out for a broad auto insurance claims record when looking at potential car insurance policyholders. Several car insurance claims suggest you are a high-risk driver to insure because you frequently get into car accidents. The fault also plays a role in the increase in car insurance premiums.
For example, a comprehensive claim causes less of a car insurance premium hike than a collision claim since you weren’t at fault for it. Similarly, suppose you file a car insurance claim with an at-fault driver’s car insurance company. In that case, your auto insurance premiums will not go up. However, it’s best to avoid car insurance claims altogether if you wish for affordable car insurance premium rates.
How do you find car insurance companies with affordable rates after a car insurance claim?
Suppose you’re shopping for car insurance after a car insurance claim. In that case, you may want to know which affordable auto insurance company offers the lowest rates on car insurance policies for drivers with a history of insurance claims.
Looking at different car insurance companies would be your best bet, as everyone handles auto insurance claims differently.
Shop for the best auto insurance policy by analyzing the following:
- Car Insurance Policy cost
- How much car insurance coverage will you receive, and what policy limits
- Car Insurance Deductibles
- Auto Insurance Claim requirements
- Customer reviews
- Car Insurance Agent response time
- Available discounts
What Does an Auto Insurance Claims Report Look Like?
Every prospective car insurance provider will look at your car insurance claims report to assess how much of a risk you are to insure.
These car insurance claims reports will typically cover your driving history’s last five to seven years. It’s not like a driving record where they look at decades.
The more car insurance claims you have, the higher your car insurance policy premiums will likely be.
These auto insurance claims reports can also include car insurance claims for different types of insurance like homeowners' or business insurance coverage.
You can request a complimentary copy of your car insurance claims report yearly from your car insurance company.
Another good way to keep track of your auto insurance claims is to make notes of car insurance claim numbers. This way, you’ll be familiar with the number of car insurance claims you have and the reason the car insurance claim was filed.
How Long Does An Auto Insurance Claims Process Take?
A big drawback is that the car insurance claims process is ongoing, as it can take months to get an insurance money payout.
Car insurance payouts usually come after you have paid for property damage, such as repair costs and medical fees, in the form of a reimbursement check cut by your auto insurance company. Car insurance claims are typically paid out 30 days after the initial filing.
The car insurance claim can be filed anywhere up to a 10-year time limit after the car accident or collision. However, auto insurance policyholders typically file car insurance claims within the week the car accident or collision occurs for a quicker payout.
All in all, the time your auto insurance claim takes to be completed depends on the severity of the car accident or collision. The more drivers are involved, the longer the car insurance claim process will take.
Can You Negotiate With The Car Insurance Claim Adjuster’s Settlement?
Your car insurance policy has an amount that the auto insurance pays out in case of a car insurance claim. The car insurance adjuster’s job is to determine how much of that amount they will pay. If the amount they come to isn’t, you may make a counteroffer.
Steps to negotiate with an insurance claim adjuster’s settlement are listed below.
- File the initial auto insurance claim - You’re already a couple of steps into the car insurance claim process, with the damages being submitted and the payout requested.
- The car insurance adjuster contacts you - The car insurance professional adjuster tells you the settlement and awaits your approval.
- Make counteroffers - If you’re unhappy with the settlement the car insurance adjustor offers, make a counteroffer. You’ll have to provide the reason and evidence that the amount you have in mind would be the ideal payout. Documentation usually helps in this case, such as medical bills and auto repair shop receipts.
- Come to final settlement - The auto insurance adjuster approves your counteroffer offer thanks to your provided evidence, and you can now receive your new payout.
What Is The Relationship Between a Car Insurance Claim and an Auto Insurance Deductible?
By now, you’re familiar with all aspects of filing a car insurance claim. We only have to cover the role vehicle insurance deductibles play in it.
A car insurance deductible is an amount you agreed to pay in the event of an auto insurance claim. Many car insurance policyholders use their car insurance deductible as an indicator to file a car insurance claim.
If you face damage costs higher than your auto insurance deductible amount, then filing a car insurance claim would be ideal.
Let’s say that you damaged your car in a car accident or collision, and the total cost to fix your vehicle is around $350. Suppose your car insurance deductible is $300 or $250. In that case, it may be worth covering the damages on your own rather than filing an auto insurance claim. At least doing that will also keep your auto insurance premiums constant.
The car insurance claims process is also a math game as you determine whether it will be worth it.
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Frequently Asked Questions
Do I need to call the police before filing a car insurance claim?
It’s a good idea to call the police before filing a car insurance claim. A police report will prove who’s at-fault for the accident. This official record makes the insurance claim process easier and reduces the chance of a dispute with an insurance company.
Can I choose the repair shop to fix my car?
Yes, you have the right to choose your own repair shop. However, your insurance company may recommend repair shops from their network that offer guarantees, discounts, or faster repairs. Choosing a non-network shop may affect your coverage benefits and warranty or result in out-of-pocket expenses.
Do I need to tell my insurer if an uninsured driver hits me?
Yes, you must notify your insurer if an uninsured driver hits you. If your policy has uninsured motorist coverage, your insurer will pay for repairs, medical bills, and other damages.
How soon should I report an accident to an insurance company?
You should report an accident to an insurance company as soon as possible. Reporting within 24 hours is a good idea. Reporting immediately preserves evidence, keeps records accurate, and enables your insurer to process the claim faster.
Can I withdraw a car insurance claim after I’ve submitted it?
Yes, you can withdraw your claim if the insurer hasn’t paid out yet. Once an insurance company makes a payment, cancellation is usually impossible. The claim will be part of your insurance record.
Is there a deadline for filing a car insurance claim?
Yes, most insurance companies and state laws have deadlines to file a claim. The deadline is usually within a few days to several weeks after the car accident. To keep your claim eligible and process it efficiently, file as soon as possible.
