Auto Insurance Claims: Your Guide To Filing A Report

Car insurance is a product that people purchase with the hope of never having to use it. However, if you're involved in an accident or your vehicle is damaged, you may need to file a claim. An insurance claim is a formal request for financial compensation from an insurance company. Filing a claim can be a stressful process, but understanding how the auto insurance claims process works can make it more seamless. This includes reporting an accident, working with an insurance adjuster, and getting your car repaired if necessary. It's important to stay calm, call the police, remain at the scene, take photos, and exchange information with the other driver if possible. You should also contact your insurance company as soon as possible, as they will likely request details such as the location, date, and time of the accident, as well as information about the other driver(s) involved. Knowing your policy's coverages and deductibles is essential to setting proper expectations for your claim.

Contact your insurance company

Contacting your insurance company is the first step in filing an auto insurance claim. It is important to do this as soon as possible, regardless of who is at fault. Many insurers offer multiple ways to file a claim: over the phone, online, through a mobile app, or with an agent.

When you contact your insurance company, they will likely request the following details:

• Location, date, and time of the accident
• Names, addresses, phone numbers, and insurance policy numbers for all involved
• Photos of the damaged vehicles
• Copies of the police and/or accident reports, if applicable

If you have a minor accident with minimal damage and no injuries, you can file an insurance claim without a police report. However, for accidents with injuries or major damage, a police report is necessary for your insurance claim.

Your insurance company will also want to know if there was an accident on private property, if the other driver fled the scene, or if there are any other extenuating circumstances. This information will help them process your claim.

After you file your claim, the insurance company may send an adjuster to investigate the accident and assess the damage to your vehicle. They will also determine if there are any personal injury claims. The adjuster will then make a recommendation for how much the insurance company should pay for the loss.

It is important to review your auto insurance policy to understand your coverage and any specific requirements or deadlines for filing a claim.

Review your policy's coverages and deductibles

Knowing your policy's coverages and deductibles is essential to setting proper expectations for your claim. It's important to review your auto insurance policy regularly to ensure you're never caught off-guard without the right protection. Here are some key considerations:

Understand Your Coverage Types and Limits:

Your auto insurance policy consists of multiple coverages that provide protection in different situations. Common types of coverages include liability coverage, uninsured/underinsured motorist coverage, medical payments coverage, personal injury protection coverage, comprehensive coverage, and collision coverage. Each type of coverage has different limits, which is the maximum amount of protection provided. For example, liability coverage pays for injuries or damages you cause up to your policy's limits. Knowing these limits will help you understand the extent of your protection.

Review Your Deductibles:

Deductibles refer to the portion you pay out of pocket when you file a claim. Different coverages may have different deductibles. By choosing a higher deductible, you may be able to lower your insurance premium. However, this means you'll pay more out of pocket if you need to make a claim. On the other hand, selecting a lower deductible will result in a higher premium but will reduce your financial burden in the event of a claim.

Consider Additional Coverages:

In addition to the standard coverages, there are optional coverages you can add to your policy. These may include rental car reimbursement, roadside assistance, loan/lease payoff coverage, and more. Review these options to determine if they align with your needs. For example, if you frequently rent cars, adding rental car reimbursement coverage can provide peace of mind.

Life Changes and Address Updates:

Certain life changes can impact the coverage you need. For instance, if you've moved to a new address, acquired a new vehicle, changed your vehicle usage, or added a licensed driver to your household, you may need to update your policy. It's important to review your policy whenever these qualifying life events occur to ensure you have the appropriate coverage.

Understand Exclusions and Limitations:

While reviewing your policy, pay attention to any exclusions or limitations. These are specific situations or circumstances that are not covered by your insurance. Understanding these exclusions will help you set realistic expectations and identify any additional coverage you may require.

Remember, insurance policies can be complex, and it's important to read and understand the fine print. Don't hesitate to contact your insurance provider or agent if you have any questions or require clarification about your coverages and deductibles. They can guide you through the details of your policy and help ensure you have the right protection in place.

Work with an insurance adjuster

When you file an insurance claim, you will most likely be dealing with an insurance adjuster, who works for the insurance company paying the claim. Adjusters investigate claims to determine the insurance company's liability and how much they should pay for the loss. They will review what happened, estimate the claims payment, and may inspect the damages, look at police reports, talk to witnesses, or ask for more information.

Be Present for the Adjuster's Inspection

Try to be there when the adjuster inspects the damage to your property. This will allow you to point out anything they may miss and ensure a thorough evaluation.

Ask About the Timeline and Expectations

Ask the adjuster when you should expect to receive an offer from the insurance company. Understanding the timeline can help manage your expectations and plan your next steps.

Get the Adjuster's Contact Information

Obtain the adjuster's contact information, including their preferred method and best time to reach them. This will make it easier to stay in communication and provide any additional information needed.

Communicate Effectively

When communicating with the adjuster, be respectful and patient. Provide detailed descriptions of the incident and any losses incurred. However, be cautious about what you say or write, especially regarding how the accident happened. Avoid indicating any partial fault, as it could affect your claim.

Understand the Adjuster's Role and Your Options

Recognize that the adjuster works for the insurance company and may try to resolve the claim as quickly and cheaply as possible. If you disagree with their estimate or settlement offer, express your concerns to the insurance company. They may adjust the offer or assign a different adjuster if requested.

Consider Hiring Your Own Adjuster

Keep in mind that the adjuster works for the insurance company, not you. If desired, you can hire your own independent claims adjuster, who will work to protect your interests and minimize your loss. They will assess the claim on your behalf and negotiate with the insurance company.

Provide Detailed Information and Documentation

Provide the adjuster with as much information as possible to support your claim. This includes photographs, videos, repair estimates, and any other relevant documentation. This will help the adjuster understand the extent of the damage and your losses.

Working effectively with an insurance adjuster involves understanding their role, communicating clearly, and providing comprehensive information to support your claim. Remember that you can also seek legal assistance if needed to ensure a fair outcome.

Repair or replace your car

Once your claim has been approved, you can decide which shop will handle your car's repairs. Your insurer will then issue a payment to you or the repair shop, minus your deductible. If your car is damaged beyond repair and deemed a total loss, your insurer will cut you a check for the value of the vehicle, minus your deductible.

If you own the car and your policy doesn't require you to use your check towards repairs, then the money is yours to spend as you choose. However, if you lease or finance a car, your lessor or lienholder will likely get to decide how you use the claims payout. They may require that you use the check for repairs and send them documentation to prove that you followed through.

If you don't own your vehicle outright and are leasing it or paying off a loan, the decision about whether to keep the money from an insurance claim is likely not yours to make. The check will probably be made out to both you and the leasing or loan company, so you'll need their approval before cashing it.

In some cases, your insurer may send the claims check directly to an auto body shop, bypassing your involvement in the process. During the claims journey, your provider may give you the option of choosing one of their preferred repair shops or picking your own.

It's worth noting that car repair insurance, also known as mechanical breakdown insurance, is different from standard car insurance. While standard car insurance is required by law in most states, car repair insurance is optional. Standard car insurance covers accident-related damage, whereas car repair insurance covers mechanical problems unrelated to accidents.

Understand the timing of your claim

Understanding the timing of your auto insurance claim is crucial to ensure a smooth and efficient process. Here are some key factors to consider:

Time Limits for Filing and Disputes:

Ask your insurance provider if there is a time limit for filing claims and submitting relevant bills. This information is typically outlined in your policy. Different states have varying statutes of limitations on the time frame for filing and settling claims, so be sure to review your state's specific guidelines.

Prompt Reporting:

Report your claim as soon as possible. Many insurance companies strive to resolve claims within 30 days, and prompt reporting can help expedite the process. Delays in reporting may hinder the insurance company's ability to handle your claim effectively.

Adjuster Assignment and Communication:

Once you report your claim, an adjuster will be assigned to your case. They will review claim notes, determine fault, and provide updates on the claim's progress. It's important to maintain open communication with your adjuster and promptly respond to their inquiries. They may request additional information, so be prepared to provide it promptly to avoid delays.

Appraisal and Repairs:

The adjuster will assign an appraiser to assess the damages to your vehicle. The appraiser will contact you to schedule an appointment, which can be done at a location of your choice. After the appraisal, it may take the adjuster anywhere from a day up to a week to issue the claim check. Keep in mind that additional repairs may be identified once the autobody shop begins working on your vehicle, which may require a "supplement" request to your insurance company.

Subrogation and Deductible Reimbursement:

If you were not at fault in the accident, your insurance company will initiate a subrogation process to seek reimbursement from the other party's insurance company. This process can take a few weeks to several months to complete. Once they receive the reimbursement, they will release your deductible payment to you.

Factors Affecting Timing:

The timing of your claim settlement can vary depending on various factors, including the severity of the accident, the number of vehicles involved, injuries sustained, and the clarity of fault. Claims involving multiple vehicles, medical injuries, or disputes over responsibility may take longer to resolve. Additionally, weather events or staffing shortages could contribute to delays in vehicle repairs and appraisals.

Frequently asked questions