Car Insurance Claims

If you’ve been in a car accident, one of the first steps is to call your insurance company. But you should understand the claims process and prepare before you make a car insurance claim. You must first file a claim with your insurance carrier to recover compensation for vehicle damage or injuries from a car crash.

When and how you make an auto insurance claim can impact the outcome of your case and the size of the insurance check. So, understanding the process before contacting your insurance carrier is essential. If you have questions about how your insurance company treats you, you should talk to your car accident lawyer.

When To File a Claim

You should contact your car insurance company to file a claim as soon as possible after you have been in an auto accident. Even if there are no set deadlines for filing, insurance companies can deny your claim if you wait too long. For example, suppose your car was damaged in an accident, but you put off filing a claim. In that case, proving the accident caused the vehicle damage will be difficult, and you won’t have that money to pay for towing, the repair shop, or the cost of a rental car.

It’s also important to file a claim as early as possible because evidence can get lost or spoiled, witnesses can go missing, and memories can fade over time. Plus, the sooner you make an auto insurance claim, the faster you will likely receive a settlement offer.

Understand Your Policy

While you should file your insurance claim as soon as possible, you should not make a claim until you have reviewed your insurance policy. There are different types of coverage, and you should understand your policy’s terms.

For example, bodily injury coverage is for injuries to you or others in a motor vehicle accident. Collision coverage is for property damage to your vehicle or the replacement cost if it is totaled. Insurance policies that cover “actual cash value” will replace a totaled car minus any depreciation. In contrast, policies that cover “replacement cost” will cover the total value up to the policy limits. Still, you may need to wait for reimbursement for the cost of repairs or replacement until you have replaced your car.

It’s important to understand your policy terms, including limits, deductibles, and exclusions. You should also check whether you are covered under other insurance policies, such as an umbrella policy.

What To Expect When You Make a Car Insurance Claim

When you make an insurance claim, the claims adjuster typically asks to record the conversation. So you want to be fully prepared before you make any statements. Filing a claim with your own insurance company is a first-party claim; a claim against another driver’s insurance company is a third-party claim.

Some states are no-fault jurisdictions, meaning you must first seek reimbursement from your insurance company for your injuries, regardless of who was at fault. In some states, this is personal injury protection insurance.

Other states, including Arizona, California, and Illinois, adopt at-fault rules. In at-fault states, you can take several actions at once, including:

• Filing a claim with your own insurance company
• Making a third-party claim against the other driver’s insurance company
• Filing a lawsuit for damages

When you make an insurance claim, the insurance agent will ask you questions about the accident, get a written or recorded phone statement from you, and investigate your claim. Then they’ll use formulas to calculate how much they will pay.

Be careful what you say to insurance adjusters since your statement is part of the record supporting your claim. Be accurate in describing the accident and supporting your version of events with evidence. If you are not honest with your insurer, it could invalidate your policy. It’s best to avoid discussing who caused the accident or admitting fault. This is especially true in states that adopt “at fault” rules, such as Arizona. The driver responsible for the accident will bear the brunt of the damages and may not get compensation.

It’s important to collect evidence to submit with your claim. This may include:

• A copy of the police report of the accident
• Photos of the scene of the accident, damage to your car, and any injuries
• Your medical bills and other out-of-pocket expenses related to the accident
• Pay stubs showing time missed from work

Keep notes of your communications with insurance adjusters, their job titles, and any promises they make regarding your claim. This could be very useful later on in the process.

If Insurance Coverage Is Not Enough

For accidents involving serious injuries, your auto insurance policy may not be enough to cover your medical payments, and you may need to sue the other driver’s insurance company. Even policies that promise “comprehensive coverage” sometimes fall short. If the insurance settlement offered to you does not fairly compensate you for your losses, you do not have to accept it.

Before signing an insurance settlement agreement, consider consulting an experienced auto accident attorney. Once you sign a settlement, you release the insurer from paying further for the accident. An auto accident attorney in your state can lay out your best options for your particular situation, negotiate an insurance claim on your behalf, protect your rights, and determine the best strategy to maximize your compensation.