When To File An Auto Insurance Claim

If you've been in a car accident, you're probably wondering whether you should file an auto insurance claim. The answer depends on several factors, including the extent of the damage, whether there were any injuries, and the laws of your state. In this paragraph, we'll explore the key considerations for deciding whether to file a claim and provide an overview of the auto insurance claim process.

How long after a car accident can you file a claim?

The amount of time you have to file a car insurance claim depends on your state and the type of claim. Most states give you two years to file a car insurance claim, but this timeframe can range from one to ten years.

Each state has its own statute of limitations, which outlines the maximum amount of time you have to file a claim or lawsuit. The length of time can differ depending on the type of claim, such as bodily injury or property damage. For example, the statute of limitations for filing a bodily injury claim in Tennessee and Louisiana is one year, while in Maine and North Dakota, it is six years.

In addition to state-mandated timeframes, your car insurance company may have its own protocols for claims filing. Many companies require "prompt" filing or mandate that you file "within a reasonable time." It is important to review your policy carefully to understand the specific requirements and deadlines.

While you may have a few days to a few months to file your claim, it is always best to do so as soon as possible. Waiting too long to file a claim can make it harder for your insurer to investigate and may increase the possibility of your claim being denied. Additionally, insurance companies may be suspicious of claims filed long after an accident and may investigate whether the damage was actually a result of the covered incident.

To ensure a smooth claims process, it is advisable to report the accident to the police and your insurance company as soon as possible. Most states require you to report an accident immediately, especially if there are major damages or injuries. Filing a police report will provide valuable evidence for your insurance claim and help determine who was at fault.

What happens if you don't file a claim right away?

If you don't file a car insurance claim right away, it can be harder for your insurer to investigate it, which may increase the possibility that your claim is denied. Your auto insurance policy may state that you should file a claim immediately or within 24 hours of the damage occurring. However, waiting to file a claim won't prevent you from doing so at a later date, as long as it's within the statute of limitations, which is typically two years but can be up to 10 years depending on the state and type of claim.

If you wait to file a claim, insurance companies may be suspicious about the reason for the delay and may investigate whether the damage was caused by the covered accident or another incident. They may deny coverage if they find reasons to doubt your claim. Additionally, failing to report an accident promptly could result in your insurer denying coverage if the other driver makes a claim for related injuries or damages that arise later.

It's important to note that most states require you to report an accident immediately, but some allow up to 30 days. Reporting an accident promptly helps your claim process go more smoothly and increases your chances of recovering your losses. Insurance companies rely on police reports as vital evidence when assessing claims, and having an officer assess the scene assists in determining fault. In some cases, you may not need to involve your insurance company at all, especially if the accident was minor and only involved your vehicle.

When could it be OK to not file a claim?

There are several situations in which it may be advisable to not file an auto insurance claim. Here are some of the most common scenarios:

• Single-car accidents with minor damage: If you're the only one involved in an accident and the damage to your vehicle is minor, you may want to pay for the repairs yourself to avoid a possible insurance rate increase. For example, if you backed into a pole and the damage is less than your deductible, it might be more cost-effective to handle the repairs yourself.
• Claim amount is less than the deductible: If the cost of repairing your vehicle is less than or comparable to your insurance policy deductible, it may not make sense to file a claim. In this case, you'll likely end up paying more out of pocket if you file a claim, as you'll be responsible for the full deductible amount.
• Insurance rate increase outweighs repair costs: Consider the potential impact on your insurance rates before filing a claim. If your insurer is likely to increase your rates significantly, it may be more cost-effective to pay for minor repairs out of pocket, especially if the repairs are only slightly more than your deductible. Remember that an at-fault accident can remain on your record for up to five years, affecting your premiums during that time.
• Minor accidents with mutual agreement: In some cases, it may be preferable to settle minor accidents privately, especially if the damage is minimal and both parties agree. However, it's important to proceed with caution, as the other party may have ulterior motives or try to avoid taking responsibility for the damages they caused.
• Older vehicles with cosmetic damage: If you have an older vehicle and aren't concerned about its appearance, you may choose to forgo filing a claim for minor cosmetic damage. This can save you money on premiums and prevent potential rate increases.
• No injuries or property damage: If you're involved in a minor accident and there are no injuries or property damage to anyone but yourself, you may not need to file a claim. In this case, there is no threat of further damages or medical costs, so it may be more straightforward to handle the repairs yourself.

Does filing a claim increase car insurance?

Whether filing a claim increases your car insurance rates depends on several factors. Firstly, it depends on your insurance company and the specific practices they employ. Secondly, it depends on the circumstances of the accident, including how severe it was and whether you were at fault. Finally, it depends on your personal circumstances, such as your claims history, location, and whether you have accident forgiveness.

In most cases, filing a claim will increase your car insurance rates. This is because insurance companies calculate costs based on risk, and drivers who file claims are considered higher-risk. The more claims you file, the higher your rates are likely to be. The average rate increase after filing a claim is between 3% and 32%, and this increase can last for two to five years. However, if you have a good driving record and a history of safe driving, your insurance company may decide to give you a smaller rate increase, or none at all.

The likelihood and magnitude of a rate increase are influenced by the circumstances of the accident. Accidents that you cause, particularly those resulting in damages over $2,000, will lead to a greater rate increase. Even if you are not at fault, you may still experience a rate increase, although it is likely to be smaller. Additionally, the type of claim matters. For example, a bodily injury, at-fault claim will result in a higher increase than a comprehensive claim for damage under $2,000.

It's important to note that failing to file a claim can also have consequences. If you try to settle an accident privately, the other driver may demand more money later, and you could be sued. Additionally, if you don't report the accident promptly, your insurance company may deny coverage for any related injuries or damages that crop up later. Therefore, it is generally recommended to report accidents to your insurance company as soon as they happen.

What happens when a claim exceeds insurance limits?

If your claim exceeds the insurance limits of the at-fault driver, you may be faced with paying the remaining cost of your treatment yourself. However, there are several options you can explore to get compensation beyond the insurance policy limits.

Firstly, if the at-fault driver has an "umbrella policy", you can file a claim to pursue more compensation. Umbrella policies are secondary insurance policies that provide coverage for damages exceeding a regular insurance policy's limit. They can cover expenses like bodily injuries and property damage and may even shield the policyholder from lawsuits.

Secondly, you may be able to file a claim with your own insurance company if your policy includes underinsured motorist coverage (UIM). UIM is designed to cover damages that exceed an underinsured driver's policy, and you can typically file a claim with your insurance company in the same way you would with a traditional liability policy. Your premium should not increase as a result of using UIM coverage, as you were not at fault for the accident.

Thirdly, instead of filing a lawsuit against the insurance company, you may be able to file a personal injury lawsuit against the at-fault driver. To succeed in this type of lawsuit, you will need to prove that the other driver was negligent in some way, such as by being distracted or not paying attention to the road. In multi-vehicle crashes, you may also be able to file lawsuits against multiple people, as fault can be split between multiple parties. However, it is important to note that situations like this can be complex, and it is recommended to seek advice from a personal injury attorney.

Another option is to file a lawsuit to seek damages in excess of the insurance policy limits. This may involve going after the at-fault driver's personal property or recreational assets, such as large savings accounts, extra cars, or vacation homes. However, this process can be long and challenging, and it is recommended to have an experienced car accident lawyer to guide you through it.

Finally, you can research whether the at-fault driver has separate coverage on another vehicle or "umbrella coverage", which is intended to cover excess damages not covered under the main policy's limits. While umbrella policies are more commonly associated with corporate defendants, individuals can also have them, especially if they have significant assets.

Frequently asked questions