Filing a car insurance claim unfortunately means that you have experienced or caused damage to your vehicle. The good news is that you have auto insurance that will cover some or all of the cost of this damage. You may need to file a claim on your vehicle insurance even if you were not at fault, but the circumstances of your claim will vary depending on the nature of the accident.
What is a car insurance claim?
A car insurance claim is basically a way to notify your insurance company that if your car is damaged in a covered accident, you should use your insurance policy to cover the costs. The process varies by provider, but how to claim your car insurance typically begins by calling and filling out an online form or using your insurance company’s app to start the process.
It is important to file an insurance claim as soon as possible after a car accident. In some cases, you may be able to begin the process while still at the scene of the accident. Whenever something happens that is covered by your insurance, you must file a claim. So, for example, if you have comprehensive cover and your car is vandalized or stolen, you will have a claim for the associated losses.
Ultimately, filing an auto insurance claim depends on the type of coverage you have. So let’s take a look at some of the most common coverage types.
- Scope of liability: This protects you in case of an accident or damage to your car. Most states require personal injury liability insurance if you injure another person, and if you damage someone’s property such as a car, fence, or mailbox while driving. It is mandatory to purchase property damage liability insurance.
- Collision range: If you are at fault in the accident, your liability coverage will pay for repairs to someone else’s car, and if they are at fault, your liability coverage will pay for repairs to their car. But you may also need insurance to pay for repairs or replacements on your car. Vehicles regardless of fault. That’s where collision compensation comes into play.
- Comprehensive coverage: Comprehensive coverage for damage or loss to your vehicle that is not caused by an accident, or damage that occurs while your vehicle is not in motion. This includes theft, vandalism, or windshield destruction by fallen tree branches. Comprehensive coverage also covers you if you hit a deer.
The more coverage you add to your insurance, the higher the premiums you may have to pay. However, you’ll also be protected from more risks, meaning you won’t have to pay any more because your car insurance claim may cover your losses.
When should I file an insurance claim?
It may seem like a waste to pay monthly premiums until you need it. Below are some of the main examples of when you may need to file an insurance claim.
when you save money
If your out-of-pocket costs exceed your deductible, you should definitely consider filing a claim on your car insurance. Note: A deductible is the amount you pay out of pocket when filing certain types of insurance claims, such as comprehensive or collision insurance. For example, if you cause significant damage to your car, say, it goes back in the dumpster and causes $1,500 in damage. If you have a $500 deductible, you will actually receive $1,000 on your auto insurance claim. In that case, filing a car insurance claim could save you money.
When you cause an accident or damage another person’s car or property
If your accident causes damage to something other than your car, you may want to file a compensation claim. If the damage is minor, it may seem like you can resolve it alone with the other driver or property owner. However, it is often safer to contact your insurance company and file your claim through the appropriate channels. Your auto insurance company has a claims agent who works with the other company’s agents to ensure each party’s rights and responsibilities are considered.
when someone hits your car
If someone else hits your car, you should start the insurance claim process as soon as possible, regardless of who is at fault. If possible, collect as much information as possible from the other driver, including vehicle information and insurance policy information. Obtain contact information for any witnesses who may be willing to provide information, and if possible, take photos or videos of evidence of the damage. If you are upset about an accident, keep an accident checklist in your glove compartment to help you remember the proper steps.
When someone is injured in an accident
If you have been involved in a personal injury accident, it is even more important to file a claim as soon as possible. Insurance companies need a thorough understanding of the medical costs associated with an accident in order to properly determine how much to pay out. Even if no one appears to be injured in the immediate aftermath, avoiding an insurance claim can be dangerous, as those involved may discover later that medical attention is required.
Are there times when I should not file an insurance claim?
Although it is beneficial to file an insurance claim to gain financial and legal protection, in some cases you may consider skipping the insurance claim process.
If the damage is minor
If you’re in a fender bender that leaves little damage to either car, you may not want to file a claim because your insurance premiums could be higher regardless of who is at fault. yeah. But be careful here. If it’s a really minor collision, like if you hit your brother’s car while reversing from your parents’ house and left a small dent in the bumper, you might be able to ignore it. However, it can be difficult to quickly come to an agreement with a stranger. It may be easier to contact your insurance company.
When you damage your car
If you damage your car, you usually have a little more leeway when it comes to filing a claim with your insurance company. Suppose you are involved in a one-car accident. Perhaps you backed into a pole or skidded into a cement barrier, resulting in only minor damage to your car. In these cases, it may be wiser to pay for the damage yourself rather than requesting a premium increase, as you may be able to repair the damage for less than your deductible. However, if the damage is significant, you may want to consider contacting your insurance company to help pay for repairs.
If there is no compensation type that covers the damage
You cannot make an insurance claim unless you have the appropriate type of coverage for the circumstances of your accident. For example, if you are at fault for a collision with another car, you will need collision coverage (often optional) to make a claim for damages to your car. The other driver can file a claim against state-required liability coverage for damage to his car, but without collision coverage, you’ll be responsible for paying for your car’s repairs out-of-pocket. You will have to do so. You can check the types of coverage included in your policy on the declaration page or contact your insurance company directly for more information.
How do insurance claims affect my car insurance premiums?
Even if you were not at fault for the accident, filing a claim could result in high car insurance premiums. why? Insurance companies’ job is to assess risk, and regardless of the circumstances, once you’re involved in an accident, your insurance company may view you as a higher-risk driver.
According to data from Quadrant Information Services, drivers with a record of at-fault accidents pay, on average, 41% more in premiums for full coverage than drivers with a clean record. Minimum coverage insurance surcharges are similar, averaging around 44% more for at-fault accidents. If your insurance company raises your car insurance premium to a price that’s outside your budget, consider comparing quotes from other insurance companies.
However, this is not always the case. Many insurance companies offer accident coverage. What exactly this means will vary from insurance company to insurance company, but it generally means that your premiums will not increase after your first at-fault accident. Some insurance companies charge extra for this option, while others include it in their basic policy. If you have a clean driving record for at least the past three years, it may be worth considering looking for an insurance company that offers this option.
What happens if the driver files a lawsuit against the insurance company?
Generally, if you are involved in an accident, it is expected that an insurance claim will be filed. However, in some cases, this may come as a surprise, such as if you were parked next to someone who noticed damage to their car. In these cases, your insurance company will contact you immediately after the other driver files a claim. Your insurance company will take the time to review police records and contact other people involved in the accident to determine who was at fault for the accident. You can consult an attorney to ensure the best course of action during this process.
If your insurance determines that you were at fault for what happened, you will be responsible for paying any costs that exceed your deductible and insurance limits. Additionally, annual premiums may increase at the time of renewal.
