Understanding Your Auto Insurance Incident: A Step-By-Step Guide

Being in a car accident can be stressful and chaotic, and it can be difficult to remember what to do immediately following a collision. It is important to understand your auto insurance policy, as your insurance follows the vehicle, not the driver. In the event of an accident, you should notify your insurance company and exchange insurance information with the other driver. You will need to provide your name and insurance information, and obtain the same from the other driver. It is also important to remain calm and not admit fault, as this could negatively impact your insurance claim. Additionally, you should collect information such as the other driver's contact information, the name of their insurance company, and their policy number. This information can also be requested from the police or the DMV if needed.

What not to say to your insurance company

After a car accident, you may need to contact your insurance company to file a claim. However, it's important to be cautious about what you say to avoid jeopardising your claim or admitting fault. Here are some things you should not say to your insurance company:

Admitting Fault

Even if you believe you are wholly or partially responsible for the accident, do not admit fault. Avoid using phrases like "it was my fault", "I'm sorry" or "I apologise". Such statements will be used against you, and provide grounds for the insurer to deny your claim, make low settlement offers, or dispute liability.

Offering Opinions

Avoid speculating about what may have happened during the accident. Stick to the facts and only share information that is backed by solid evidence. If you don't know the answer to a question, say "I don't know" instead of guessing or offering an opinion.

Providing Extra Details

Only answer the questions asked by the insurance adjuster, and keep your responses brief and simple. Avoid long conversations and providing unnecessary details, as anything you say can be used against you.

Discussing Substance Use

Never volunteer information about consuming alcohol or drugs, even if they were consumed hours before the accident. This could be used as a reason to deny your claim, as drunk driving is illegal.

Discussing Your Injuries

Do not downplay your injuries or claim that you are fine. Some injuries may not be immediately noticeable, and you may not know the full extent of your injuries until you have been examined by a doctor. Discussing your injuries could jeopardise your claim or lead to a lower settlement offer.

Providing Names of Family, Friends or Witnesses

Do not give the insurance company the names or contact information of any individuals, including family members, friends, doctors or witnesses. The insurance company may try to contact these individuals to gather information that could be used to dispute your claim.

Accepting the First Settlement Offer

Insurance companies may try to offer a quick settlement, but these are usually low offers that do not fully compensate you for your injuries. Consult with a personal injury attorney before accepting any settlements to ensure you receive a fair offer.

Discussing Your Lack of Legal Representation

If you do not have a lawyer, do not mention it. Insurance companies may try to take advantage of the fact that you do not have legal representation. Having a lawyer can lead to your claim being treated with more care and respect.

Providing a Recorded Statement

You are not obligated to provide a recorded statement, and it is in your best interest to decline such requests. Recorded statements can be thoroughly examined and used to find inconsistencies or contradictory information that can be used against you.

Providing Access to Your Medical History

Do not sign any permission forms or give the insurance company access to your entire medical history. They may try to downplay your injuries by claiming pre-existing conditions or previous injuries. Only provide medical records directly related to the injuries from the accident.

Remember, insurance companies will try to pay out as little as possible, so it is important to be cautious about what you say and provide only the necessary information.

What to do immediately after an accident

Being in a car accident can be a stressful and traumatic experience. It's important to keep a cool head and follow these steps to ensure your safety and protect yourself from any potential legal issues.

Firstly, check yourself and your passengers for any injuries. If there is another vehicle involved, check on the other driver and their passengers too. If anyone is injured, call 911 to get an ambulance and the police to the scene. If the vehicles are still operational, move them to the side of the road and turn on the hazard lights. If there's a risk of explosion, get everyone away from the vehicle to a safe place.

Next, call the police. Even if there are no serious injuries, it's important to have an official report to give to your insurance company. If the police can't come to the scene, exchange information with the other driver, including names, addresses, phone numbers, license plate numbers, driver's license numbers, and insurance information. Get the names and contact details of any witnesses too.

Once you have ensured the safety of everyone involved and collected the necessary information, you can start gathering evidence to document the crash. Take photos of any damage to the vehicles and visible injuries. Make notes on what happened, including the speed you were driving and the road conditions. If possible, draw a diagram of the scene, showing the direction each vehicle was travelling.

Finally, contact your insurance company as soon as possible to notify them of the accident and start the claims process. You may also want to consult an attorney to protect your rights and ensure you receive the full compensation you are entitled to.

How to file a claim

An auto insurance claim is a formal request for financial compensation from an insurance company. Here is a step-by-step guide on how to file a claim:

• Stay calm and document the incident: After an accident, it is important to stay calm and document the incident by taking photos, exchanging information with the other driver, and calling the police. Information to document includes the location, date, and time of the accident, as well as the names, addresses, phone numbers, and insurance policy numbers of all involved. If there are any witnesses, be sure to get their contact information as well.
• Contact your insurance company: You can file a claim by phone, online, through a mobile app, or with an agent. Your insurer will likely request details about the accident, such as the location, date, time, and the names and insurance information of those involved. They may also ask for photos of the damaged vehicles and copies of any police or accident reports.
• Review your policy: Understanding your policy's coverages and deductibles is essential to setting proper expectations for your claim. For example, if you have rental car reimbursement coverage, you may be entitled to a rental vehicle while your car is being repaired.
• Work with an insurance adjuster: Your insurance company will appoint an adjuster to investigate your claim. The adjuster will typically contact you within one to three days of filing the claim and will arrange an inspection to assess the damage to your car and/or address any personal injury claims. They may also analyse police reports and interview witnesses.
• Repair or replace your car: Depending on your insurer, you may be required to get an estimate for the cost of repairs. Once your claim has been approved, your insurer will issue a payment to you or the repair shop, minus your deductible. If your car is totaled, your insurer will cut you a check for the value of the vehicle, minus your deductible.

What to do if your insurance company and you disagree

If you disagree with your insurance company's decision, there are several steps you can take to try to resolve the issue. Here is a guide on what to do if you find yourself in this situation:

• Understand your coverage: Before taking any action, make sure you thoroughly understand your insurance policy. Read the fine print and ensure you aren't missing any details that could have led to a lower claim.
• Communicate your dissatisfaction: Let your insurance company know that you are unhappy with their decision. Contact the claims adjuster and ask questions to understand their rationale. Ask about the specific clause in your contract that they are basing their decision on and how the compensation was calculated.
• Provide explanations and make your case: Talk to the claims adjuster about your disagreement and provide additional information or supporting documents to strengthen your case. If your disagreement is about the amount of compensation, find comparable cases to support your argument. If you disagree with a specialist's report, consider getting a second opinion from another specialist.
• Negotiate a new settlement: Present any new information you have gathered and negotiate with the claims adjuster to reach a fair settlement.
• Complain to the insurer: If you are unable to reach an agreement with the claims adjuster, you can file a written complaint with the insurer's complaints department. Most insurance companies provide information about their complaints procedure on their websites.
• Seek external help: If the issue remains unresolved, you may need to seek external help. Depending on your location and the specifics of your case, you can consider contacting your state insurance department, hiring a lawyer, or transferring your case to a financial authority.
• Be patient and persistent: Throughout this process, remember to be patient and persistent. Don't settle for less than what you believe is fair, but also maintain a calm and polite attitude when dealing with the insurance company and claims adjuster.

Remember that you have the right to challenge the insurance company's assessment, and by following these steps, you can work towards reaching a fair resolution.

When to contact your insurance company

It is important to contact your insurance company as soon as possible after an auto accident, even if you don't believe you were at fault. Your insurance policy will likely require you to report an accident within a reasonable amount of time, and failure to do so could result in your insurer denying coverage.

Compliance with Insurance Policy Requirements

Your auto insurance policy likely contains language that requires you to promptly report an accident. By contacting your insurance company, you fulfil your contractual obligation to notify and cooperate with them, especially if you intend to make a claim under your policy.

No-Fault State Considerations

If you live in a no-fault insurance state, you must first bring a claim for benefits under your personal injury protection (PIP) coverage before pursuing a claim against the other driver. PIP coverage will help with medical bills, lost wages, and amounts you pay for replacement services. Notifying your insurance carrier is necessary to initiate a claim for PIP benefits.

Disputes Over Fault

Even if you believe the other driver was at fault, they may disagree and claim that you were to blame. Your insurance company needs timely notification of the accident to conduct a thorough investigation and protect your interests.

Claiming Other Benefits Under Your Policy

You may need to claim benefits under other provisions of your auto insurance policy, such as uninsured or underinsured motorist (UM/UIM) coverage. If the other driver is uninsured or underinsured, and you have UM/UIM insurance, you may need to make a claim for benefits under this coverage.

Medical Payments Coverage

If you have medical payments ("MedPay") coverage, you can claim benefits to reimburse you for medical bills, including deductibles or copays, even if you have a health insurance plan.

Investigation and Negotiation Support

Your insurance company can conduct a comprehensive investigation of the accident, gather evidence, and negotiate a favourable settlement on your behalf. This support can be invaluable, especially if you are recovering from injuries or prefer not to engage in contentious negotiations with the other driver's insurance adjuster.

Frequently asked questions