How to File a Car Insurance Claim

If you have been involved in a car accident or your vehicle has been damaged by vandalism, theft, fire, or natural disasters, you may need to file a car insurance claim. A car insurance claim is a request for compensation from your insurance company or another driver’s insurance company for the losses or expenses you incurred as a result of the incident. Filing a car insurance claim can help you recover the cost of repairing or replacing your vehicle, as well as paying for medical bills, lost wages, and other damages.

According to the National Highway Traffic Safety Administration (NHTSA), there were 6.7 million motor vehicle crashes reported in the US in 2019, resulting in 36,096 fatalities and 2.74 million injuries. The average cost of a car accident claim was $3,841 for property damage and $18,417 for bodily injury in 2017, according to the Insurance Information Institute (III). Having car insurance can help you cover these expenses and avoid paying out of pocket.

However, filing a car insurance claim is not always a straightforward or simple process. You need to follow certain steps and provide sufficient evidence to support your claim. You also need to deal with your insurance company and possibly the other driver’s insurance company, who may not always have your best interests in mind. Therefore, it is important to know how to file a car insurance claim properly and what to expect from the process. In this article, we will guide you through the main steps involved in filing a car insurance claim and provide some tips on how to handle each step.

Step 1: Gather Information at the Scene

The first step in filing a car insurance claim is to gather as much information as possible at the scene of the accident or damage. This information will help you prove what happened, who was involved, and how much damage was done. It will also help you communicate with your insurance company and the other driver’s insurance company more effectively.

The information you need to collect at the scene includes:

• The other driver’s name, contact details, insurance information, license plate number, and driver’s license number.
• The names and contact details of any passengers, witnesses, or pedestrians involved in the accident or who saw the damage.
• The location, date, and time of the accident or damage.
• The make, model, color, and year of the vehicles involved.
• The police officer’s name, badge number, and contact details if the police were called to the scene. You should also obtain a copy of the accident report from the police department as soon as possible.
• The details of how the accident or damage occurred, such as the direction and speed of the vehicles, the weather and road conditions, the traffic signals and signs, etc.

In addition to collecting this information, you should also take photos and videos of the damage to your vehicle and the other driver’s vehicle, the location of the accident or damage, and any skid marks, debris, or injuries that can support your claim. You should also write down or record your own account of what happened and how you felt immediately after the incident. These photos, videos, and notes can serve as valuable evidence for your claim and help you remember the details later.

Step 2: Contact Your Insurance Company

The next step in filing a car insurance claim is to contact your insurance company as soon as possible after the accident or damage. You should notify them of what happened and provide them with the information you gathered at the scene. Your insurance company will ask you for some basic information, such as your policy number, vehicle identification number (VIN), and driver’s license number. They will also ask you for more details about the accident or damage, such as who was at fault, how severe the damage was, whether anyone was injured, etc.

Depending on the type and extent of coverage you have, your insurance company may cover some or all of the losses or expenses you incurred as a result of the incident. The most common types of coverage are:

• Liability coverage: This covers the damages or injuries you cause to another person or their property in an accident. It is required by law in most states and has minimum limits that vary by state.
• Collision coverage: This covers the damage to your vehicle caused by a collision with another vehicle or object. It is optional and usually has a deductible that you have to pay before your insurance company pays for the rest.
• Comprehensive coverage: This covers the damage to your vehicle caused by events other than a collision, such as vandalism, theft, fire, or natural disasters. It is also optional and usually has a deductible.
• Uninsured/underinsured motorist coverage: This covers the damages or injuries you suffer in an accident caused by a driver who has no insurance or not enough insurance to cover your losses. It is optional in some states and required in others.
• Medical payments coverage: This covers the medical expenses for you and your passengers in an accident, regardless of who was at fault. It is optional and has a limit that varies by policy.
• Personal injury protection (PIP) coverage: This covers the medical expenses, lost wages, and other damages for you and your passengers in an accident, regardless of who was at fault. It is required in some states and optional in others and has a limit that varies by policy.

When you contact your insurance company, they will review your policy and coverage and determine how to handle your claim. They may accept or deny your claim, assign an adjuster to investigate your claim, offer you a settlement, or refer you to the other driver’s insurance company if they were at fault. You should cooperate with your insurance company and provide them with any additional information or documentation they request. However, you should also be careful not to admit fault, sign any documents, or accept any offers without consulting a lawyer or an independent appraiser first.

Step 3: Get Your Car Repaired

The third step in filing a car insurance claim is to get your car repaired. Depending on the severity of the damage, you may need to tow your car to a repair shop or drive it there yourself. You should find a reputable repair shop that can provide you with an estimate for the cost of repairs and guarantee their work. You can choose your own repair shop or use one recommended by your insurance company or the other driver’s insurance company.

Before you get your car repaired, you should work with your adjuster and the repair shop to agree on the scope and quality of repairs. Your adjuster will inspect your car and compare it with the estimate from the repair shop. They may negotiate with the repair shop to lower the cost or change the parts or methods used for repairs. They may also ask you to get a second opinion from another repair shop if they disagree with the first estimate. You should make sure that the repairs are done according to your satisfaction and that they restore your car to its pre-accident condition.

While your car is being repaired, you may need to get a rental car or alternative transportation to get around. Some insurance policies include rental car reimbursement coverage, which pays for the cost of renting a car while your car is being fixed. 

However, this coverage may have a limit on the amount or duration of the rental car reimbursement. You should check your policy or ask your insurance company for the details of this coverage and how to use it. Alternatively, you may use public transportation, ride-sharing services, or borrow a car from a friend or family member while your car is being repaired.

Step 4: Review and Settle Your Claim

The final step in filing a car insurance claim is to review and settle your claim. This means that you and your insurance company or the other driver’s insurance company agree on the amount of compensation you will receive for your losses or expenses. This amount may include the cost of repairing or replacing your vehicle, the cost of renting a car or alternative transportation, the medical bills, lost wages, and other damages you suffered as a result of the accident.

Before you settle your claim, you should review your claim and make sure it reflects all the damages and expenses you incurred as a result of the accident. You should also compare it with the estimates from the repair shop and the adjuster and make sure they are consistent and accurate. You should also keep track of all the receipts, invoices, bills, and other documents that support your claim and provide them to your insurance company or the other driver’s insurance company.

If you are not satisfied with the offer from your insurance company or the other driver’s insurance company, you have the right to negotiate with them and ask for a higher amount. You should explain why you think their offer is too low and provide evidence to support your claim. You should also be prepared to compromise and accept a reasonable amount that covers your losses or expenses.

However, if you have a dispute with your insurance company or the other driver’s insurance company over liability or fault, you may need to seek legal assistance or arbitration. Liability or fault refers to who was responsible for causing the accident or damage and who should pay for the damages or injuries. If you and your insurance company or the other driver’s insurance company cannot agree on who was at fault or how much fault each party had, you may need to file a lawsuit or go through an arbitration process to resolve the dispute. A lawsuit is a legal action where you sue the other party in court and ask a judge or jury to decide the outcome. An arbitration is an alternative dispute resolution where you and the other party agree to let a neutral third party, called an arbitrator, decide the outcome. Both options have their advantages and disadvantages, such as the cost, time, and complexity involved. You should consult a lawyer or an arbitrator before you choose either option.

Once you agree on the amount of compensation you will receive for your claim, you should accept or reject the settlement offer. If you accept the offer, you will sign a release form that waives your right to pursue any further claims or lawsuits related to the accident or damage. You will also receive a check or a direct deposit for the agreed amount. If you reject the offer, you will continue to negotiate with your insurance company or the other driver’s insurance company until you reach an agreement or decide to file a lawsuit or go through an arbitration.

Conclusion

Filing a car insurance claim can be a stressful and complicated process, but it can also help you recover from the losses or expenses you suffered as a result of an accident or damage to your vehicle. By following the proper steps and providing sufficient evidence to support your claim, you can increase your chances of getting a fair and timely compensation for your claim. You should also be aware of your rights and options and seek professional help if you encounter any difficulties or disputes along the way.

Having car insurance can protect you from paying out of pocket for the damages or injuries you cause or suffer in an accident or damage to your vehicle. However, not all car insurance policies are created equal. You should compare different car insurance companies and policies and choose the one that best suits your needs and budget. You should also review your policy regularly and update it if your circumstances change.

For more information or guidance on car insurance claims, you can visit the following resources:

• The National Association of Insurance Commissioners (NAIC) website: https://www.naic.org/
• The Insurance Information Institute (III) website: https://www.iii.org/
• The National Highway Traffic Safety Administration (NHTSA) website: https://www.nhtsa.gov/