Understanding Auto Insurance Claims: When To Make Them

Making a claim against your auto insurance can be a stressful process, but it's important to know your rights and responsibilities when doing so. The first step is to review your policy and understand your coverage. This will help you determine if you have the necessary insurance to make a claim and what your responsibilities are in the claims process. It's also crucial to act quickly and inform your insurance company as soon as possible after an accident, as there may be time limits for filing a claim.

When deciding whether or not to file a claim, consider the extent of the damage and injuries involved. If there are significant property damage or bodily injuries, it's generally recommended to file a claim. On the other hand, if the damage is minor and only involves your car, you may want to pay for the repairs yourself to avoid a potential increase in your insurance premiums.

It's also important to gather the necessary information and documentation, such as police reports, medical bills, and photos of the damage. This will help support your claim and speed up the process. Remember that your insurance company is there to help you, so don't hesitate to reach out and ask any questions you may have.

When you've caused an accident or damage to someone else's car or property

If you've caused an accident or damage to someone else's car or property, you should always inform your insurance company. Even if the damage is minor, it's important to recognise that you could be held responsible for paying for someone else's medical bills or car repairs, which could amount to thousands of dollars.

In the immediate aftermath of an accident, you should:

• Check for injuries to yourself and your passengers, as well as the other driver and their passengers.
• Move impacted vehicles out of the way of traffic, if possible.
• Call the police to report the accident.
• Exchange information with the other driver, including names, addresses, phone numbers, driver's license numbers, and insurance information.
• Take pictures of the damage to all vehicles involved, as well as any other property damage.
• Notify your insurance company of the incident.

It's important to act promptly after an accident, as your insurance policy may require you to notify them within a specific timeframe. Waiting too long could jeopardise your claim.

Even if the damage seems minor, it's always safer to connect with your insurer and file a claim through the proper channels. Your insurance company has claim agents who are experienced in handling these situations and can work with the other person's insurance company to ensure that the rights and responsibilities of each party are considered.

Additionally, it can be difficult to assess the full extent of damage or injuries immediately after an accident. Some issues, such as engine problems or whiplash, may not show up right away. By filing a claim, you'll have an open claim and police report to verify the accident, which can help protect you from unexpected costs down the line.

When someone has hit your car

If someone has hit your car, you should follow these steps:

• Check if everyone is okay, and move the vehicles out of traffic if possible.
• Call the police, especially if there is major damage to either car or any injuries.
• Exchange insurance and contact information with the other driver. Make sure to get their full name, address, phone number, insurance company name, policy number, driver's license and license plate number.
• Take photos of the scene and the damage.
• Look for witnesses and ask for their contact information.
• Call your insurance company, even if you believe the other driver is at fault.

If the other driver is insured, their insurance company will be responsible for paying for the repairs, up to their policy limits. If the driver is uninsured or leaves the scene, your insurance company will pay for the damage if you have the right coverage. This includes collision coverage or uninsured motorist property damage insurance.

If your parked car has been hit, you should not move it. If you can locate the person who hit your car, exchange information with them and then call the police to file a report. If the person has left the scene, this could be considered a hit-and-run, which is a crime. The police may be able to help you identify the person who hit your car.

When people have been injured in an accident

If people have been injured in an accident, it is important to file a claim as soon as possible. This is because the insurance company will need to have a full picture of any medical costs involved in the accident to properly determine the payout amount it will provide. Even if it appears that no one is hurt in the immediate aftermath, those involved may later discover that they require medical attention, which can make it risky to avoid filing a claim.

In the case of a car accident, it is important to gather as much information as possible, including the names and contact information of all parties involved, including witnesses, licenses, car registrations, insurance ID cards, and car make and models of all parties involved. It is also important to take photos and videos at the scene of the crash to have documentation when filing a claim. If the accident results in serious injuries or damages, alert the police or highway patrol and ask for a copy of the police report.

When filing a claim, it is important to provide as much information as possible to the insurance company, including the other driver’s information, a copy of the police report, and any medical bills or repair costs incurred as a result of the accident. The insurance company will then review the claim and determine the payout amount.

It is worth noting that filing a claim can potentially increase insurance rates, especially if the insured is at fault or has filed multiple claims in a short period. However, many insurers offer accident forgiveness, which means rates won’t go up after the first at-fault accident.

When you've damaged your own car

If you've damaged your own car, you can make an insurance claim if you have collision and/or comprehensive coverage. However, if you only have a liability-only car insurance policy, damage that you cause to your own car won't be covered. Liability insurance only covers the other driver's damages and injuries.

Collision coverage insures your car against damage resulting from accidents, such as collisions with other vehicles or objects like telephone poles or trees. Comprehensive coverage, on the other hand, covers damage caused by events outside your control, such as vandalism or falling objects.

If you have collision and/or comprehensive coverage, your insurance company will cover the damage to your own car, minus your deductible. However, it's important to note that filing a collision claim may cause your premium to increase when you renew your policy. Additionally, insurance won't cover your own negligence, such as forgetting to close your windows before it rains.

In some states with no-fault insurance laws, you must make injury claims on your own insurance first, regardless of who is at fault. These states require personal injury protection (PIP) insurance, which covers medical expenses from a car accident, regardless of fault. In these cases, you can only sue the other driver if certain qualifications are met, such as serious injury or death.

When making a claim for damage to your own car, it's important to review your policy and understand your coverage. Contact your insurance company as soon as possible, as there may be time limits for filing a claim. Additionally, take photographs of the damage and gather information from any witnesses to support your claim.

When you'll save money by claiming

You should consider filing a car insurance claim when your out-of-pocket costs would exceed your deductible. Your deductible is the amount you'll pay before your auto insurance coverage kicks in. For example, if you do serious damage to your car and the cost of repairs is $1,500, and you have a deductible of $500, you'd be claiming $1,000 from your insurer. In this instance, filing a car insurance claim could help you save money.

If you have collision coverage, it will pay for damage to your car. But if you only have minor damage, you might be able to get the damage fixed for less than your deductible, so it may make more sense to pay for the damage yourself rather than make a potential premium-raising claim.

If you have comprehensive coverage, this covers damage or loss to your vehicle that is not caused by an accident or damage that occurs when the car is not moving. This includes theft, vandalism, or a fallen tree branch smashing your windshield. Comprehensive coverage also covers you for hitting a deer.

If you have liability coverage, this provides protection when you cause an accident or damage with your car. Most states require you to have bodily injury liability coverage if you hurt someone else, and property damage liability coverage if you damage someone else’s car, fence, mailbox or other property while driving.

If you have personal injury protection (PIP), this covers medical expenses from a car accident regardless of who is at fault.

If you have uninsured/underinsured motorist coverage, this can cover medical bills when the other driver doesn’t have enough insurance.

If you have rental car reimbursement coverage, you could tap that for a rental while your vehicle is in the repair shop for a collision claim.

If you have gap insurance, this can provide the difference between the insurance payment and the loan/lease balance if you owe more on a car loan or lease than what the car was worth.

Frequently asked questions