Auto Insurance Claims 101
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Melanie Musson
Published Insurance Expert
Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. Through her years working in th...
Published Insurance Expert
UPDATED: Apr 30, 2023
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.
UPDATED: Apr 30, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance provider and cannot guarantee quotes from any single provider.
Our car insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different car insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Many people have auto insurance without ever needing to use it. The monthly premium provides peace of mind knowing that if something happens, the damage will be covered. Unfortunately, accidents do happen, and you may someday need to use your car insurance. In order to make the process as easy and painless as possible, it’s a good idea to take the time to understand exactly how claims work and what will be expected of you.
How to File a Car Insurance Claim
Whenever an auto accident happens, the first step to recovering the cost of repairs is to file a claim with the insurance company. Even if you do not have full coverage insurance, it’s a good idea to contact the company anyway to report the accident. This fulfills your obligation to report all accidents and ensures that the other party does not make a falsified claim against you.
- Check out Top Auto Insurance Claim Questions
Some insurance companies enable the insured to file a claim through the insurance agent, but most companies prefer that you call the toll-free claims number instead. Some companies also enable online claim reporting, but if you file online, you will still be contacted by an adjuster to complete the claims process.
Filing a claim will take approximately 15 minutes, although the time frame may change depending on the complexity of the claim. The representative will ask questions to confirm your identity, verify what happened and make note of the damage. It’s easiest to answer the questions if you have a police report available, but it’s unnecessary as long as you exchanged information with the other person at the scene of the accident.
Once the claim has been filed, the representative will provide you with adjuster information, discuss your coverage and make arrangements for the vehicle to be inspected. If you do not have coverage that applies to the loss, they will advise you of this. Depending on the situation, you may still need to have the vehicle inspected to assist with the liability determination.
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What happens after a claim is filed?
Depending on the loss facts, an adjuster may or may not need to complete a liability investigation after the claim has been submitted. This will require the adjuster to get a recorded statement from everyone involved in the loss. They may also interview witnesses, order a police report or do further investigations. Once liability has been determined, the adjuster will advise you of the findings and explain how your coverage will be applied to the loss.
In the meantime, you will get your vehicle inspected. Depending on your insurance company, this may require you to obtain individual estimates, bring the vehicle to an inspection location, have the adjuster come out to look at your vehicle or simply bring the car to an affiliated body shop. Regardless of where the inspection occurs, the adjuster will need to assess the damage and determine how much repairs will cost.
After the estimate has been completed, the insurance company will offer a settlement based on the cost of repairs. If the vehicle is not repairable, the settlement will be based on the replacement value of the damaged car. Either way, a deductible will apply to any loss that you file on your own insurance. If you are not at fault for the loss, the deductible may be reimbursed to you at a later point.
Once the settlement check is received, you can have the vehicle repaired. If the body shop discovers additional damage beyond what the initial estimate covered, the shop will submit a supplement request to the insurance company to make up the difference. During the repairs, you may be eligible for a rental car if your policy covers it.
Other Considerations
If you are not at fault for an auto accident, you have a few choices about how to handle the claim. If you file a claim with your insurance company and have the applicable coverage, your insurer will settle the claim with you. You are responsible for paying the deductible in this situation. After the claim has been settled, the insurance company will file a claim against the other party’s insurance in a process called subrogation.
Once the subrogation demand has been accepted by the third-party carrier, they will reimburse the full cost of repairs to the not-at-fault insurer. At this point, the insurance company will be able to reimburse your deductible. This process may take several weeks or months depending on the severity of the claim and whether liability is clear.
Your other option is to file the claim directly with the third-party carrier. If you know that you’re not at fault, you can call their claims department and start the claim through them without needing to use your insurance. The claims process for this is the same as for filing with your own insurer, although it sometimes takes longer for the settlement to be received.
Filing a third-party claim will allow you to forgo paying your deductible. It also makes you eligible for a rental car regardless of what coverage you carry on your own vehicle. On the other hand, the insurance company may not accept liability and the claim could be denied, requiring you to use your own insurance after all.
Insurance Claims Process
Insurance can be complicated, but by taking the time to understand your policy and the claims process before an accident happens, you can be prepared for an accident. If you have any questions about a specific accident, you should be able to contact your insurance professional to clarify situations regarding your claim. He or she will be happy to discuss your situation in detail and advise you on the next steps of the process.
The vital role of claims in the insurance industry, is paying people for their insured losses. This is what the insurance industry is supposed to do, at the most basic level.
Frequently Asked Questions
How do claims on auto insurance work?
Auto insurance claims are the process of reporting and seeking compensation for damages or injuries resulting from a car accident or other covered event. To file a claim, the driver typically needs to provide information such as the date, time, and location of the accident, as well as any photos or other evidence of damage or injury. The insurance company will then investigate the claim and determine if the policy covers the damages. If approved, the insurance company will provide compensation to cover the costs of repairs, medical bills, or other expenses related to the claim.
What should I do if I get into a car accident and need to file an auto insurance claim?
If you get into a car accident and need to file an auto insurance claim, you should first contact your insurance company’s toll-free claims number. The representative will ask questions to confirm your identity, verify what happened, and note the damage. Once the claim has been filed, the representative will provide you with adjuster information, discuss your coverage, and make arrangements for the vehicle to be inspected. Depending on the situation, you may still need to have the vehicle inspected to assist with the liability determination.
What should I do if I get into an accident?
First and foremost, make sure everyone involved is safe and call for emergency services if necessary. Exchange contact and insurance information with the other driver(s) and collect evidence such as photos and witness statements. Then, contact your insurance company to file a claim.
How do I file an auto insurance claim?
Contact your insurance company as soon as possible after the accident. You’ll need to provide details such as the date, time, and location of the accident, the names and contact information of all involved parties, and a description of the damages or injuries.
What happens after I file a claim?
Your insurance company will assign an adjuster to investigate the claim and determine the amount of compensation you’re entitled to. Depending on the extent of the damages, you may need to get an estimate from an auto repair shop or have an independent appraisal done.
What types of damages does auto insurance cover?
This will depend on the specific coverage you have, but in general, auto insurance can cover damages to your vehicle, injuries to you or other parties involved in the accident, and damage to other people’s property.
Will my auto insurance rates go up if I file a claim?
This will also depend on your insurance company and policy, but in some cases, filing a claim can lead to an increase in your premiums. However, many insurance companies offer accident forgiveness or other incentives to policyholders who have been with them for a certain period of time without any accidents.
How long does it take to process an auto insurance claim?
This can vary depending on the complexity of the claim, but in general, you can expect to receive a decision from your insurance company within a few days to a few weeks. If there are disputes or further investigation needed, it may take longer.
What if I disagree with the insurance company’s decision?
If you disagree with the amount of compensation offered by your insurance company, you can try to negotiate with them or even hire an attorney to represent you. If you still can’t reach a satisfactory resolution, you may need to go to court.
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Melanie Musson
Published Insurance Expert
Melanie Musson is the fourth generation in her family to work in the insurance industry. She grew up with insurance talk as part of her everyday conversation and has studied to gain an in-depth knowledge of state-specific insurance laws and dynamics as well as a broad understanding of how insurance fits into every person’s life, from budgets to coverage levels. Through her years working in th...
Published Insurance Expert
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.