Auto Insurance Claims: Your Right To File

Filing an auto insurance claim is necessary in several situations, such as when you've been in an accident that caused damage to someone else's car or property, or when another driver has hit your car. It's also crucial to file a claim for major property damage and bodily injuries, as this will help cover the cost of repairs, medical expenses, and legal fees if you are taken to court. Even if the accident was minor, it's generally recommended to report it to your insurance company and the local police department, especially if there are any injuries or significant vehicle damage. This is because injuries may not always be apparent immediately after an accident, and you don't want to risk being held responsible for someone else's medical bills. Additionally, failing to report an accident promptly could result in your insurer denying coverage if the other party makes a claim for related injuries or damages later on.

When to file a claim

When to file an auto insurance claim is dependent on a few factors. Firstly, it is important to note that you should always report an accident to your insurance company, especially if another party is involved. However, there are instances where filing a claim may not be necessary. Here are some scenarios in which you should consider filing an auto insurance claim:

When there is significant property damage or bodily injuries

If there is major property damage to your vehicle or another person's vehicle, it is advisable to file a claim. Collision insurance will cover repairs for most single-car crashes, while comprehensive car insurance will cover accidents involving objects like a deer or street light. In the case of bodily injuries, liability coverage will cover medical expenses if you are at fault. It is important to note that some injuries may not appear immediately, so having an open claim can protect you from future costs.

When you damage someone else's car

If you are at fault for causing significant damage to someone else's vehicle, it is always recommended to file a claim. Even if the other party is at fault and offers to pay out of pocket, it is better to go through insurance as it is easy to underestimate the cost of auto repairs.

When your car has hidden damage

Even if your vehicle seems operational after an accident, there may be hidden issues that could cause problems down the road. It is recommended to take your car to a repair shop to identify any internal or cosmetic issues that need to be fixed.

When there is only minor damage to your vehicle

If you are involved in a minor accident that only affects your car and no one is hurt, you may choose not to file a claim to avoid increased premiums. This is especially true if the repair cost is lower than your insurance policy's deductible, as you would not receive any reimbursement.

When you accidentally cause damage to your own car

If you accidentally cause significant damage to your own car, you may want to contact your insurer if you have collision coverage. However, consider the possibility of increased rates at renewal due to the claim.

It is important to carefully review your auto insurance policy and understand the potential financial implications of filing a claim. Additionally, always remember to file a police report and gather documentation at the time of the accident to protect yourself in case of future disputes.

When you might not need to file a claim

When you might not need to file an auto insurance claim

While it is generally recommended to file an auto insurance claim, there are some situations in which you might decide against it. Here are some scenarios where you may opt not to file a claim:

• Minor accidents with no injuries and minimal damage: If you are in a fender bender that results in little to no damage to either car and no one is hurt, you may choose not to file a claim. This is especially true if the cost of repairs is less than your deductible, as there would be no claim payment and you risk increased premiums.
• Damage to your own car: If you are in a single-car accident and only your car is damaged, you may consider paying for the repairs yourself, especially if the damage is minor and the cost of repairs is less than your deductible. For example, if you back into a pole or a mailbox and cause a small dent, it might not be worth filing a claim.
• Potential rate increases: If filing a claim may lead to a rate increase, you might decide against it. This is a tricky situation, as insurance companies consider various factors when determining rate hikes, such as the severity of the accident, your driving record, and the company's policies. However, if the repairs are more expensive than your deductible, you will have to weigh the benefits of the insurance payout against the risk of higher premiums.
• When you have only liability insurance: If you only have liability insurance and no collision coverage, your policy won't cover damage to your car anyway. In this case, filing a claim won't be necessary unless other vehicles or property were damaged.

It's important to note that even in these situations, it's generally a good idea to report the accident to your insurance company and the police, especially if another party is involved. Additionally, make sure to get documentation, such as photos and repair estimates, to protect yourself in case any issues arise later on.

When you'll save money

When it comes to filing an auto insurance claim, there are times when doing so can save you money. Here are some scenarios where filing a claim can be financially beneficial:

When the Damage to Your Car Exceeds Your Deductible

If the damage to your car is more than your deductible, filing a claim can help cover the repair costs. For example, if you have a $500 deductible and the damage to your car is estimated to cost $1,500 to repair, you would be saving money by making a claim, as the insurance company would cover the amount exceeding your deductible.

When You Cause an Accident or Damage to Someone Else's Car or Property

If you cause damage to someone else's car or property, it is generally recommended to file a claim. While it might seem tempting to handle the situation independently, involving your insurance company can provide better protection. Their claim agents will work with the other person's insurance company to ensure a fair process.

When Someone Else Hits Your Car

If another driver hits your car, regardless of who is at fault, you should initiate the claims process as soon as possible. Gather information from the other driver, including their insurance policy details, and take photos and videos of the damage. This will help support your claim.

When People Are Injured in an Accident

If there are injuries as a result of an accident, filing a claim as soon as possible is crucial. Insurance companies need to be aware of any medical costs involved to determine the appropriate payout amount. Even if no injuries seem apparent immediately after the accident, they may manifest later, so it is always better to be cautious and file a claim.

When Your Rates Are Unlikely to Increase

In some cases, filing a claim may not result in an increase in your insurance rates, especially if you have a clean driving record. Many insurers offer accident forgiveness, meaning your rates won't go up after your first at-fault accident. If your insurer provides this option, you can benefit from filing a claim without worrying about a rate hike.

Remember, it is always important to review your insurance policy and understand your coverage before deciding whether to file a claim. Consider seeking advice from experts or insurance advisors to make an informed decision.

When you damage someone else's car

If you damage someone else's car, you should always file a claim. If you are at fault, your insurance is usually responsible for covering the costs. However, if the costs of the accident exceed your policy limit, the insurance of the person driving your car may cover the remaining costs.

It is important to notify your insurance company, even if you are not at fault. Your insurance company will then work with the other driver's insurance company to sort out liability coverage. Alternatively, your insurance company may have you file a third-party claim with the other party's insurance.

A third-party claim is a claim filed by someone other than the policyholder or insurance company. In a third-party claim, you use the other driver's insurance to pay for your repairs, damages, and medical expenses. You are responsible for kicking off the third-party claim filing process when you are in an accident caused by another driver. While you won't be filing the claim with your insurance company, it is important to call them as soon as possible to report what happened. They will then likely file the claim with the other driver's insurance company for you.

If you decide to file a third-party claim yourself, you may be able to create an account with the at-fault party's insurance and access their online claim portal, where you can file and track the progress of your claim. Otherwise, simply call the other party's insurer to file your claim using the information their insured gives you regarding their auto insurance.

To get started, be prepared to provide some information about the driver who caused the accident, their insurance, and the accident. Talk to the other driver when the accident occurs and gather the following information:

• The other driver's name and phone number
• Their license and registration information
• Their vehicle information
• Their auto insurance information (from their ID card)
• Photos of the accident scene and vehicle damage

If the police do not come to the scene, consider filing an accident report with the local police department so that there is a record of what happened. After you file the claim, the at-fault party's insurer will likely assign an adjuster to investigate the accident, determine who was at fault, and provide an initial estimate of the repair costs. If the adjuster determines that the other driver was at fault, they will either send you a check for the cost of the repairs or pay the body shop directly, up to the other driver's coverage limits.

When someone is injured

If someone is injured in a car accident, it is crucial to file a claim. If you are injured and it was someone else's fault, you should file a third-party claim with the other driver's insurance. If you have liability coverage, as most states require, it covers third-party claims made against you if you are the at-fault driver.

When multiple people are involved in the accident, obtain each person's ID and insurance information. Liability coverage will cover bodily injury if you are at fault. Many injuries, such as whiplash and muscle injuries, may not show up immediately and can take days or even weeks to fully manifest. Having an open claim and a police report to verify the accident helps drivers and passengers protect themselves from uncertainty.

Several states have time limits for filing injury claims, typically around 30 days. In California, the statute of limitations to sue for injuries from a car accident is two years. Most insurance companies require that you notify them promptly after an accident if you intend to make a claim. Delaying too long could compromise your ability to recover damages.

If you are injured and it was your fault, or the other driver is uninsured, you should file a claim with your insurance company. If you have medical payments coverage or personal injury protection coverage, it can help pay for your lost wages and medical bills beyond what your health insurance covers, up to your limits.

Frequently asked questions