How to File an Auto Insurance Claim

If you're in an accident, you should immediately call the police, exchange information with the other driver, and document the damage for your insurance claim. Depending on your coverage and the circumstances of the accident, you may be required to make a claim with either your own or the other driver's insurance company.

Each car insurance claim is unique. State insurance laws can have an impact on how the procedure unfolds, such as processing timeframes and fault assessment.

Understand your policyholder rights and what to do if an insurer refuses your claim or offers an unfair settlement.

What to Do at the Accident Site: Steps to Take 

So you got into a minor collision. Here is what you should do:

Get to safety

If your car is impeding traffic, relocate it to the side of the road if you can do so safely. However, if your car is leaking fluids, such as oil or gasoline, leave it where it is and move somewhere safe. Use flares or emergency triangles to alert other drivers.

Check for injuries

Call 911 if there are any injuries from the collision. Provide first assistance until the ambulance arrives.

Notify the police

Contact the police department. In some areas, police may only react to certain accidents. Even so, it's critical to tell the authorities because some motor insurance policies mandate reporting within a specific time frame.

Exchange information

Obtain the other driver's details, including:

  • Name
  • Address
  • Telephone number
  • Driver’s license number
  • Insurer’s contact information
  • Vehicle identification number (VIN)
  • License plate number
  • Make and model of vehicle

You may need to check the above information against the physical driver's license and vehicle registration. It may be best to photograph the driver's license, license plate number, vehicle identification number, and registration. 

Document the damage

Take photographs of the accident scene, including traffic signals. Take pictures and/or videos of all damaged automobiles. If you were involved in an accident and suffered damages or injuries, state law may require you to report it to your state's motor vehicle department. 

Call your insurer

Contact your insurance carrier, even if the other driver appears to be at blame in the accident. When you speak with a claims or customer support agent, ask the following questions:

  • What coverages do I have?
  • What are my coverage limits?
  • What's my deductible?
  • Does my policy cover rental cars?

The insurance may require you to submit images of your vehicle's damage or schedule an in-person inspection. Typically, the insurance company will suggest that you drive your car to a body shop to get an estimate on repair expenses.

Filing a Claim Against the Other Driver

Following a traffic collision, you can file a claim with your own insurance carrier if you have the necessary coverage to repair your vehicle or pay for damages. However, if the other motorist was at fault for the collision, you may submit a claim with their insurer. A first-party claim is one filed with your insurer, whereas a third-party claim is filed with the carrier of another driver.

Third-party claims have both advantages and downsides. If you strike a satisfactory agreement, their insurer will pay the claim. Your insurer won't.

However, the third-party insurer represents the insured, not you. After reviewing the accident, the third-party adjuster may offer you a payment if they conclude that their policyholder was to blame for the incident. For this to happen, the policyholder must participate in the investigation.

Body Injury Claims

Typically, an insurance company will only settle a bodily harm claim once all medical procedures have been finished. For example, if you break your leg in an accident, the insurance will most likely not pay your bodily injury claim until you have completed all doctor's appointments and physical therapy sessions.

When offering a bodily injury settlement, the insurer will want you to sign a "release for damages" agreement. By signing the paper, you agree to the settlement and waive your right to pursue a subsequent claim. That is why you should wait until you have fully recovered from your injuries before accepting a settlement.

Filing a Claim Using Your Own Insurance

If you are injured or your car is damaged in an accident, you can make a claim with your insurance provider. If you are at fault in an accident, you must file a claim with your insurance company as long as your coverage applies. In most states, you file a first-party claim if you have:

  • Collision: For collision-related accidents.
  • Comprehensive: For theft and vandalism.
  • Medical payments or personal injury protection (PIP) coverages: For injuries.
  • Uninsured motorist: If the other driver is not insured.

If you simply have state-mandated liability coverage and are at fault, your insurer will not pay your injuries or property damage. However, in "no-fault" states like New York, you can submit a claim with your own insurance for injuries.

Comparative Negligence

Certain states have comparative negligence laws. These regulations demand that insurance companies analyze the extent of fault caused by each driver.

For example, assume you are speeding and collide with the side of an automobile that is running a red light. Your provider and the other driver's insurance adjusters may conclude that the other driver was 90% responsible for running the red light. However, you were also 10% liable because you drove too rapidly to avoid the collision.

Some state laws establish a comparative negligence standard for claiming damages. For example, Utah law prohibits you from collecting damages if you are more than 50% at fault in the crash. In our case, the third-party insurer must pay for your car's repairs if you are less than 50% at fault. The third-party insurer may only give a 90% settlement because you were partially responsible.

Next Steps

States may set limits on how long an insurer can wait to respond to a claim. For example, under New York law, providers must make a property damage offer within six working days.

If your claim is accepted, the insurance company will pay the compensation according to the policy's coverage limit. For example, if a policy covers $20,000 in property damage damages, it will only pay up to $20,000 per claim.

Property Damage Claims

When filing a first-party claim to fix your car, you can select the repair business. If you disagree with the settlement figure, you may request an independent evaluation. However, the insurance adjuster and appraiser will establish the vehicle's financial value.

If the damage to your car surpasses its pre-accident cash worth or there are other major difficulties, such as flooding, the insurance company may declare it a total loss. In such circumstances, the insurance will only reimburse the automobile's depreciated worth. For example, if you total a vehicle worth $10,000, the settlement amount will be no more than $10,000. 

Body Injury Claims

If another party was at fault for your collision, their bodily injury claims insurance coverage will cover expenditures such as:

  • Doctor and hospital bills
  • Laboratory fees
  • Lost wages
  • Rehabilitation expenses

If you were at fault, medical payments and PIP coverage might assist cover the costs. A policy may also provide compensation for pain and suffering. If you disagree with a pain and suffering compensation, you may want to consult an attorney.

Alternative Scenarios

Insurance claims don't always go well. The insurance company may refuse your claim or provide a payment that does not cover your damages.

When to Sue

In general, if there is a death, injury, or significant physical damage, you should consult with a lawyer. Find a lawyer who specializes in personal injury claims. The lawyer can advise you on the deadlines for accepting a claim offer or filing a lawsuit, if your case is worth pursuing, and what your next steps should be. 

Your capacity to suit is determined by your state, the period since the accident, and the circumstances of your case. For example, North Carolina law prohibits a motorist from collecting damages on a claim if they are even substantially at fault for an accident.

In some no-fault states, rules prohibit citizens from suing an at-fault motorist unless an accident causes death, lifelong disfigurement, significant disability, or property damage that exceeds a predetermined monetary limit.

If Your Claim Is Denied

Insurers decline claims for a variety of reasons, including:

  • Lack of coverage: Some claims require specific coverages to be in place. Without these coverages, you will be responsible for your own or your passengers' injuries or car damage. If an unlisted driver from your family is involved in an accident while driving your vehicle, the insurance company may deny your claim. Your claim may also be denied if it exceeds your insurance limit. 
  • Providing inaccurate information: When applying for auto insurance, you must submit accurate information, otherwise the insurer may deny your claim. For example, if you claim to store your car in a garage but actually park on the street, your insurance company may deny a comprehensive claim if it is stolen.
  • Suspected fraud: The insurer may believe that the accident did not occur or that you are inflating treatment and repair expenses. Alternatively, an insurer may believe the accident was purposefully induced or that another type of fraud happened. 

If your claim is refused, consult your policy paperwork or contact your agent to determine why it is not covered. If you are dissatisfied with the explanation, your next steps are determined by your state and insurance contract. 

Some contracts allow you to use an assessment method to resolve damage amount issues. In such circumstances, you can submit a complaint with your state insurance department to get help from your insurer. In general, the state insurance department can only aid if the claim denial violates the law or the conditions of your policy.

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