Filing a Car Insurance Claim: A Step-by-Step Guide
No one wants to file a car insurance claim. Even you will also not want that. But you can have to face this situation if your vehicle gets damaged in any accident or by any hail storm, etc. To tackle such situations, you need to know how to claim car insurance.
Today, about 215 million drivers in the United States have car insurance, while about 6% of the people are still uninsured (Reference: Insurance Research Report). Most of the time when an accident happens, drivers do not know “How do I file an insurance claim”.
Read on to know the complete procedure of filing an car insurance claim so that you may not have to suffer due to a lack of knowledge.
What Is an Car Insurance Claim?
Let’s start with the basics!
An car insurance claim is a request or a report that you need to file after you have been exposed to an accident or incident.
Here, an accident refers to a direct head-to-head collision with another vehicle. On the other hand, the incident covers various situations like hailing, storms, winds, vandalism, or theft that might damage your car anyway.
Simply put, an car insurance claim refers to the process of contacting your company for the coverage of loss you have suffered.
Important: Remember your car insurance claim amount will only be given to you if you pay the percentage of deductibles as per your policy terms and package.
Related: Get to know about car insurance deductibles and explore your knowledge about the specific percentages of deductibles tailored to various car insurance deals.
How Do Car Insurance Claims Work?
When you get involved in a car accident, you will have to contact your auto insurance trade company. A team of qualified adjusters will completely investigate the situation and damage to your car.
After that, the team of adjusters will prepare an initial coverage report. Even if the shop mechanic finds some additional damage, he/she will contact the company for the recovery of that additional loss as well.
How to File an Car Insurance Claim?
Filing a car insurance claim is super easy. Generally, the car accident insurance claim process consists of 5 steps, mentioned as under:
1) Call the Police
First of all, you need to immediately contact police to file a report of the incident. The police will come and capture the photographs of the accident that can help you as proof.
Even if your state does not have any law regarding this practice, it is still a good practice to contact the police department for immediate assistance. This way, you can make your car insurance claim case even stronger.
Remember this holds true in case you have a collision. But in case your car gets damaged by some natural disaster, a police report is not necessarily needed in the scenario.
2) Collect Evidence and Documentation of the Incident
The second step for a motor insurance claim is to document each and every aspect of the incident’s information. This will certainly help you to answer the insurance agent at the time of claiming.
Let’s dive deeper to know what to do!
Suppose you were in a car accident on a highway or on any other road. In this condition,
- Immediately take photographs of your car’s number plate and visible damages
- Take photos of the wider scene of the accident
- Write down the names, addresses, and phone numbers of each and every person involved with you in the accident
- You can also write a brief summary highlighting the causes due to which accident happened
- Don’t forget to take a copy of the police report if you file a police report
- If you find any witness, you can also take their names and phone numbers for proof
3) Call Your Auto Insurance Company
After you document everything, the next step is to call your auto insurance company.
- Call your insurance company without any late
- If the company has a mobile application, you can use that to start your car insurance claim process
- You may inquire about the insurance timeline so that you can plan your moves
- Make sure you provide every information to the best of your knowledge to avoid any trouble later on.
Remember that dealing with an accident is not easy always. But if your vehicle is insured with a reputable company like Insurance Trade, you do not have to worry about coverage loss.
4) Obtain a Repair Estimate
When your insurance company confirms the loss after investigating the incident, it will give you an estimate of the total coverage amount needed to cover the loss. Most companies in the United States have their own vendor shops. Getting your car repaired at these shops can increase the procedure as well. In addition to this, you can also ask for any custom repairs and modifications.
5) Take a Follow-Up On Your Claim
After your claim is filed and is confirmed legal, your next duty is to take updates on your file processing. If you have insured your vehicle with a reputed company like Auto Insurance Trade, then you do not have to worry about anything. Their professional insurance lawyers will handle your claim case without any trouble.
On the other hand, if your company is not professional, then the chances of no or more negative responses are higher.
When Not to File an Car Insurance Claim?
Certain situations are there under which you are not supposed to file a claim car insurance:
- A minor Fender Bender that you and the net party both agree to handle privately
- When claim amount is either less or equal to the deductible
- In single-vehicle accidents, during which the damage to your car is nominal
- When an increase in your insurance rate will cost you more out-of-the-pocket repair costs
- Last, when you own an old car and are not worried about its look
What to Do if Your Car Insurance Claim Is Denied?
Procedure to follow if your car insurance claim is denied:
- Try to figure out and understand the reason why your insurer denied your request (Review Denial Letter)
- Check if the denied claim is actually covered by your policy.
- Collect proper evidence and file an appeal for a decision review
- You can also contact a lawyer to fight your case legally
Here, you also need to understand the reasons that can be a cause of your insurance claim denial.
Reasons That Can Cause Denial of Car Insurance Claim
Most common reason for denial of auto accident claims include:
- Coverage limits
- If an undocumented driver drove the damaged vehicle
- Unpaid premiums
- Car customizations that are not approved, including fuel systems, the engine itself, etc.
Things to Avoid
- Do not indulge in any argument with drivers or passengers
- Try to tell the whole situation to the police officer or your insurance company
- Avoid signing any statement related to paying penalties for the damages
- Try to avoid being trapped by any other parties
- Show your driver’s license, evidence of financial responsibility, vehicle registration card, or address to the police officer
People Also Ask
What happens when the car is damaged beyond repairs?
If you come across an accident and your car gets damaged fully, then your insurance company will declare it as “Total Loss” and you will be paid an entire amount to purchase the new vehicle.
How to claim car insurance for theft claims?
If someone steals your car, the procedure to claim is quite the same as for car insurance claims in case of an accident. What you need to do is to report a theft instead of a collision or accident.
Should I file an insurance claim?
If you want to file a claim, then it is your choice. If your accident caused only minor damage, like a small bumper dent, and it was your fault, you might want to pay for the repairs yourself. Filing a claim, especially if you were at fault, can make your car insurance more expensive.
If the accident wasn’t your fault, the other person’s insurance should cover it, so your policy would not change. You can choose to deal directly with their insurance company or let your own insurance company help you.
How long does an insurance claim take?
An insurance company takes 30 days to process your claim. Remember that Your state’s statutes of limitations can determine the duration of filling or settling a claim. This limitation of insurance is different in different states.
What documents do I need to submit an auto insurance claim after an accident?
- Immediately file a police report for your car accident.
- In your police report mention your driving license or insurance policy number
- Driver’s licenses, contact information, and auto insurance information are some of the important information that must be mentioned in the police reports.
- For filing a claim the car model, license plates, and year all these details must be included
- Attach photos or a written statement unit of the whole accident
How does the Company determine damages and cost of repairs?
The insurance company has different criteria to determine all damages or repair cost estimation about your vehicle.
There are many factors you must take into account, including but not limited to:
- How much your car is damaged in an accident
- All the cost of parts, labor, and paint are also mentioned
- All the repair cost taxes of your car must be attached
Additional References
