Navigating Auto Insurance Claims: Whose Insurance Pays?

Being in a car accident is stressful, and the process of making an insurance claim can be confusing. If you've been in an accident that wasn't your fault, you may be able to file a claim with the other driver's insurance company, known as a third-party claim. This process can be tricky, as you don't have a contract with the other driver's insurance company, and they will be looking out for their own interests. It's important to understand your rights and duties when making a third-party claim, as insurance laws differ in each state. In this paragraph, we will explore the steps to take when filing a third-party insurance claim, how to deal with the other driver's insurance company, and what to do if your claim is denied.

The other driver's insurance company may not agree their driver is at fault

If the other driver's insurance company does not agree that their driver is at fault, you may have to file a claim with your own insurance company. If you have collision coverage, it will pay your repair costs. If you have uninsured/underinsured motorist coverage, it will pay if the at-fault driver didn't have insurance or enough insurance to pay your car repairs. If you have medical bills, your personal injury protection coverage, medical payments coverage, or uninsured/underinsured motorist coverage might pay.

Your insurance company will try to recover what they paid you from the other driver's insurance. If they get anything back, you might get your deductible reimbursed.

If you are unhappy with the other driver's insurance company, you can contact your own insurance company. If they find that your policy covers your loss, they will be happy to handle your claim and then seek reimbursement from the other driver's insurance company. They will also attempt to recover your deductible from the other driver's insurance company.

If the other driver's insurance company denies your claim, ask for their reason in detail and in writing. You’ll want to understand the precise reason why the claim was denied and, if necessary, how to appeal the denial. It could be that they’re wrong, or it could be a legitimate denial—for example, because you didn’t carry the right coverage for the claim.

Review the current evidence and then submit a letter that describes how the evidence contradicts the insurance company’s decision. If you’re uncomfortable disputing the denial alone, you may want to consult with an attorney for legal advice.

You can file a claim with the other driver's insurance company

If you've been in a car accident and believe you are not at fault, you have the option to file a claim with the other driver's insurance company. This is called a third-party claim. While you won't be filing the claim with your insurance company, it's a good idea to call them as soon as possible to report what happened. They may even file the claim with the other driver's insurance company for you.

Step 1: Exchange Information

At the accident scene, take a picture of the other driver's insurance card and driver's license. If they don't have an insurance card, ask for their name, phone number, insurance company name, and policy number. Be sure to give them your information as well.

Step 2: File a Claim

When you get home, contact the other driver's insurance company to file a claim. You may be able to create an account with them and access their online claim portal, or you may simply need to call them. Provide them with the other driver's information, as well as details about the accident. If the police responded to the accident, send a copy of the report to the other driver's insurance company.

Step 3: Understand the Investigation Process

The other driver's insurance company will investigate the claim. They will likely assign an adjuster to determine who was at fault and provide an initial estimate of repair costs. Be cautious when speaking with the adjuster, as their primary goal is to minimise the company's financial payout. You are not legally required to speak with them, and it's important to watch what you say. Do not discuss the specifics of the accident, accept any money, or sign anything.

Step 4: Negotiate Settlement

If the adjuster determines that the other driver was at fault, they will offer a settlement. If you don't agree with the amount offered, you can attempt to negotiate. Provide them with an estimate from a repair facility of your choice, or research to understand your vehicle's value if it is not repairable.

Step 5: Consider Other Options

If you are unhappy with the other driver's insurance company, you can always file a claim with your own insurance company, or seek legal help. Remember that insurance laws differ for first and third-party claims, so understand your rights and duties in both cases. In a third-party claim, the insurance company's primary obligation is to their own policyholder.

You can file a claim with your own insurance company

If you've been in a car accident, it's important to know what to do next. Here are some steps you can take if you need to file a claim with your own insurance company:

• Stay Calm and Ensure Safety: After an accident, take a moment to breathe and check if you and your passengers are unharmed. If there are any injuries, call for medical assistance immediately. If it's safe to do so, move your vehicle out of the way of traffic to prevent further incidents.
• Gather Information: Exchange information with the other driver, including names, phone numbers, insurance company names, and policy numbers. Take photos of the accident scene, capturing vehicle damage, road conditions, and nearby intersections or signs. Also, obtain contact information from any witnesses present.
• Notify Your Insurance Company: Contact your insurance provider as soon as possible. Many insurers offer mobile apps or online portals that allow you to file claims conveniently. Be sure to submit your claim within the insurer's specified time limit, usually around 30 days.
• Provide Detailed Information: Your insurance company will request detailed information about the accident, including a written or recorded statement. They may also contact other drivers and witnesses as part of their investigation. If you have medical payments or uninsured motorist claims, provide documentation of your losses, such as injuries, medical expenses, and lost wages.
• Understand Your Coverage: Review your insurance policy to know what is covered and what is excluded. This will help you navigate the claims process and determine if you have the necessary coverage for your specific situation.
• Repair Your Vehicle: You have the right to choose the repair facility for your vehicle. If your car is not safe to drive, notify the other driver's insurance company promptly so they can initiate their claim process. Keep in mind that your insurance check may be reduced by your collision deductible amount, but you might be reimbursed later if your insurance company pursues the other driver's insurer for reimbursement.
• Rental Car Coverage: If you have rental reimbursement coverage, you can use it while your vehicle is being repaired. Review your policy to understand the specific rental coverage limits and conditions.
• Claim Reassessment and Appeal: If your claim is denied or you disagree with the offered settlement amount, ask for a detailed explanation in writing. You can then submit a letter explaining how the evidence contradicts the insurance company's decision or how the settlement amount does not adequately cover your losses.

Remember, each insurance company and state may have different processes and requirements, so be sure to review your policy and understand your rights and responsibilities.

You may need to provide evidence

Evidence is crucial when making a car insurance claim or winning a car accident lawsuit. You will need to prove who caused the accident and how much the accident cost you. The more evidence you have about how the crash happened and how it impacted you, the more likely you are to get a fair car accident settlement.

• Information from those involved: the name, address, and telephone number of any drivers involved in the accident should be collected, along with license plate numbers and insurance information.
• Witness information: gather the names and contact information of any witnesses.
• Photographs: take photos of the damage to vehicles, traffic signs and signals in the area, the exact location of the crash from different angles, vehicle debris, and skid marks.
• Police report: if an officer responds to the scene of the accident, they will likely write a police report, which will include details of the crash, statements from those involved, and a diagram of the accident.

It is also important to remember that you are required to exchange information with other drivers involved in the accident, including names, addresses, driver's license numbers, license plate numbers, and insurance information.

Once you have gathered this initial evidence, there may be additional evidence to collect after leaving the scene of the accident. This includes:

• Medical records of injuries: the attending physician will make note of any visible and internal injuries.
• Receipts for expenses: collect all receipts from medical treatments, prescription drugs, or other expenses incurred as a result of the accident.
• Proof of lost wages: a statement from your doctor about your injuries and projected recovery period, as well as a statement from your employer or pay stubs showing your normal income level, can help demonstrate lost wages.
• Estimate of damages: even if your insurance company is paying for repairs to your vehicle, there may be deductibles involved, so be sure to include these in your final claim for settlement with the at-fault party's insurer.

Remember, the more documentation you have, the better. Having comprehensive evidence can help you successfully file your claim and receive fair compensation for your injuries and losses.

You are not legally required to speak with the other driver's insurance company

After a car accident, you might receive a call from the other driver's insurance company. However, you are not legally required to speak with them.

Why You're Not Obliged to Speak with the Other Driver's Insurance Company

There is no state or federal law that requires you to talk to the other driver's car insurance company after a car accident. If law enforcement investigates the accident, you have a constitutional right under the Fifth Amendment to remain silent, as anything you say can be used against you.

When You Should Speak to Them

In rare instances, you may need to speak with the other driver's insurance company, such as when the other driver is clearly at fault but has refused to speak to their insurer. In this case, the other driver's insurer may not know the extent of the damages you endured, especially if the accident was minor. Communicating information about the accident may fall to you to expedite your claim.

What to Do When They Contact You

If you do receive a call from the other driver's insurance company, it's best to use one of these responses:

• "Thank you for calling, but I am insured by another company. If you have any questions, you can call my insurance agent or company at [provide that contact information]."
• "I cannot speak with you about the accident. Please contact my insurance agent or company at [provide that contact information]."
• "I am represented by an attorney in this matter. Please direct any questions to [provide that contact information]."

Make it clear that you prefer all future calls go to your insurance agent, adjuster, or attorney.

What to Say if You Choose to Speak with Them

If you do decide to speak with the other driver's insurance company, be very careful about what you say and what information you provide. Remember that their primary goal is to pay out as little as possible, so they will be looking for ways to disprove your claim and dismiss your case.

• Only answer the questions asked and don't volunteer any extra information.
• Don't agree to have your statement recorded, whether in writing or over the phone.
• Don't speculate or guess any information. It's okay to say, "I don't know."
• Provide only basic factual information, such as your full name and the date and location of the accident.

Frequently asked questions