A Guide To Filing An Auto Insurance Claim
After an accident, auto insurance policyholders can file a claim to request compensation for damage.
Filing a claim can help pay for property damage, medical expenses, loss of salary due to missed work and even legal fees, depending on your coverage.
You should always read your policy or contact your insurance agent or provider to understand exactly what's covered under your plan.
What is a car insurance claim?
A car insurance claim is a request for reimbursement from an insurance company for the costs of damage or injury in an auto accident.
There are several types of auto insurance coverage that address different incidents. You can’t file a claim unless you have coverage for the specific incident in question. Common coverages:
- Liability insurance covers damage to an individual from an accident in which you are at fault. Liability insurance covers both bodily injury (BI), or physical harm, to another driver or passenger and property damage (PD), such as vehicle or structural damage. Some amount of liability insurance is required in every state except New Hampshire.
- Personal injury protection (PIP) and medical payments (MedPay) coverage offers bodily injury reimbursement for you or your passengers in an accident, regardless of who was at fault. PIP may also cover lost wages from being unable to work.
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Comprehensive and collision insurance covers damage to your car. Comprehensive insurance covers damage from "acts of God" or events outside the driver's control, such as vandalism, hitting an animal, theft or a tree branch hitting the windshield. Collision insurance covers damage from accidents, regardless of who was at fault.
- Uninsured and underinsured motorist coverage is similar to liability insurance but covers accidents involving an at-fault uninsured or underinsured driver. When the other driver is at fault, you would normally file a claim with their insurance provider. However, if the at-fault driver is uninsured, then your own uninsured motorist insurance would cover your bodily injuries and property damage. Similarly, if the at-fault driver doesn't have enough insurance to cover your expenses, your underinsured motorist coverage would pay for the remaining damage.
- Full coverage includes all of the coverages listed above.
What your auto insurance covers
Required coverage varies by state, and you often need to opt for specific coverages unless you choose a full-coverage policy.
Liability insurance is almost always required, and several states also mandate PIP. Other coverages are not as commonly required by law.
Read your policy to understand the coverages you have, and check with your state's insurance department about local regulations. Your car insurance may include all of these coverages or just one, so it's good to confirm what your policy covers as you seek help with your auto insurance claim.
How do car insurance claims work?
There are three main steps to filing a car insurance claim after an accident:
- Gather relevant evidence and documentation. Prepare to file your claim.
- Call your insurance company. File a claim and work with a claims adjuster.
- Receive a claim settlement and payout. Receive a decision from the insurance company and appropriate compensation.
Gather relevant evidence and documentation.
To prepare for filing an auto insurance claim, gather all of the evidence and documentation related to the accident that you can. Before contacting your insurance company, you should call the police, record the details of the incident and take steps to limit your liability.
Call the police.
Contact 911 immediately if someone is hurt or there is vehicle or property damage. Your insurance company may need a police report prior to processing your claim.
Record all of the accident details.
Document the accident with pictures and a written summary. Take photos or notes of any car involved, not just your own. Get information about the other driver — their name, phone number, license plate, vehicle make and model, insurance company and policy number.
When writing your summary, include all you can remember about what happened immediately before, during and after the accident.
Avoid mistakes that could impair your claim.
We typically recommend not apologizing, accepting fault or telling the other driver your coverage limits. If your insurance has a higher coverage limit, the other party may blame you to try to avoid paying for damage. You may be considered liable if you touch the other person, so we recommend avoiding physical contact. However, use your own judgment if you believe the person's life is at risk without your assistance.
We suggest not accepting cash or agreeing to settle privately unless you absolutely do not plan to file a claim, because such actions could ultimately hurt your ability to receive compensation.
Call your insurance company.
Calling your insurance company will officially initiate the claim. After you've prepared all the relevant documents and materials, call to open a case, and work with an insurance claims adjuster to determine your settlement and payout.
Check the statute of limitations to make sure you file your accident claim before the deadline. Also check with your provider, as the amount of time you have to file a claim can vary by insurer and policy.
Understand fault.
Depending on the nature of the accident, you should call either your insurance company or the other driver's insurer. Only contact the other party’s insurance company if that driver is at fault.
Sometimes, fault in an accident isn't clear or is shared, which is another reason it's important to collect as much information as possible about the incident prior to filing a claim. And some states are no-fault states that require all drivers to have personal injury protection, eliminating the need to file a claim with another driver's insurance company.
Open a case.
When you call to initiate a claim, your insurance provider will open a file regarding your case. Explain the nature of the accident and claim, including the total amount of compensation you're requesting. Offer your insurer as much information as possible to expedite the process.
Work with a claims adjuster.
After the call, your insurance company will review the material and assign you a claims adjuster, also called a claims specialist. The claims adjuster will determine the value of the damage and the appropriate compensation based on your policy. They will manage your case on behalf of the insurance company and take the necessary steps to settle your claim.
Claims adjusters may ask to meet in person or see the damaged vehicle. They may even specify the repair shop you must use to get your car fixed. Ask the claims specialist how your policy handles vehicle repairs or bodily injury claims and medical expenses. Don't hesitate to reach out to your claims adjuster to ask questions about your car insurance claim.
File the report before the deadline.
You might wonder when to file your car insurance claim or how long you have from the date of the accident to file the claim. This varies by insurance provider and state, so confirm with your provider as soon as possible to avoid missing any statute-of-limitations deadlines.
Receive a claim settlement and payouts.
To settle and pay out your claim, the adjuster will determine the cost of the damage, appropriate compensation and any additional steps needed to repair your car. When waiting for your settlement, it helps to understand local regulations regarding insurer response times, why claims are rejected and how to negotiate payouts.
Know how long it may take to settle a claim.
Drivers often ask how quickly their claim will be processed, but the answer varies by state and insurer. Many states have legislation that protects consumers by establishing a time limit for claim settlements. California, for example, requires insurers to notify policyholders of a decision within 40 days of receiving proof of the claim. Check with your state's insurance department if you believe your insurance company is not processing your claim in a timely fashion.
Know why claims are often rejected.
Keep in mind that your claim may be denied based on the nature of the accident or your coverages. For instance, your claim will likely be rejected if there is evidence you violated state law during the accident.
It's also possible your claim may not be paid in full. Your coverage has limits, and insurers will only pay for claims up to the coverage limits.
Negotiate your settlement offer.
If you are not satisfied with your settlement offer, you can negotiate with your provider. Prepare for these discussions by providing all the necessary evidence to support your claim, such as medical records, police reports and similar cases. The better your evidence, the more likely you are to receive higher compensation — for both the initial offer and after negotiation.
If you are still unsatisfied with the terms of the settlement, you may hire an attorney to file a lawsuit, but be sure to consider the associated costs. You may also contact your insurance agent for support or to obtain alternative coverage for future incidents.
When should you not file an auto insurance claim?
Always check with your insurance agent or provider to confirm what's covered under your policy. It's important to compare your deductible with the out-of-pocket costs of repairs, especially in the case of minor damage like a small scratch or fender bender. If the deductible is higher than the out-of-pocket costs, you won't receive any compensation.
By not filing a claim, you'll also save time and potentially avoid rate increases, which could cost you a lot more in the long run. Consider not filing a claim if the repair costs are only slightly higher than your deductible, since long-term rate increases could outweigh your short-term repair costs.
Other considerations when filing a claim
Auto insurance can be complicated. Here are some frequently asked questions about how to handle a car insurance claim.
Will my insurance rate go up if I file a claim?
Your rate could go up after filing a claim, but rate increases depend on several factors, including your driving history, who was at fault and the extent of the injuries/damage.
If you have few or no previous claims, you may only see minimal rate increases. If your insurance coverage has an accident forgiveness policy, your rate may even stay the same. Drivers with extensive accident histories are much more likely to be hit with large rate increases.
If you were at fault for the accident, there is a greater chance your rate will increase. If you were not at fault, you are much less likely to see your rates go up, but you should always double-check with your provider, because some insurers may apply a rate increase regardless of the circumstances.
The extent of the damage is also a factor, because higher payouts are greater liabilities for insurance companies. Insurers mitigate the risk of future payouts by increasing rates. If the damage is minimal, any potential rate increase will likely be smaller.
You can always consider switching insurance providers, as some insurers may offer a lower rate than your current premium.
How do I file a claim against someone else?
At the time of the accident, record the other driver's name, license plate number, insurance company and policy number. Afterward, call their provider directly to initiate a claim under the driver's liability insurance. If the at-fault driver is uninsured or underinsured, check with your own provider to determine if you have uninsured and underinsured motorist coverage.
Can you file a car insurance claim without a police report?
We typically do not recommend filing a car insurance claim without a police report. A police report is often the best source of detailed evidence about an accident, especially in cases where fault is unclear or shared. Insurance companies frequently require police reports to process your claim when there is damage to either driver, passengers, vehicles or other property. To process your claim efficiently, we recommend sharing the police report with your insurer as soon as possible.
The police won’t automatically send their report to your insurer, but don’t assume you can hide a police report from your provider. Your insurance company has ways of obtaining the police report if you do not provide it. If someone files a claim with their insurance company and identifies you as being involved in the accident, the police report may be shared between insurers.
Additionally, state law enforcement agencies submit police reports directly to the Department of Motor Vehicles. Your insurance company can access police reports affiliated with your license number from the DMV.