Car insurance claims: A complete guide

How does a car insurance claim work?

A car insurance claim involves providing details of the incident to the insurance company, followed by an investigation and inspection of the damage. The adjuster will determine which portions of your coverage apply and calculate a settlement.

In an accident where you don’t believe you are at fault, the process is similar, although you will likely speak with an adjuster from the other driver’s insurance company and receive your settlement from them. Even if you don’t think you’re at fault, it’s always a good idea to call your insurance company and keep it in the loop.

Below are the different coverage sections on your car insurance policy that may apply to a claim and what they cover.

• Collision claims involve accidents with other vehicles or objects. For example, you get into a crash with another car while driving or you back into a telephone pole. The collision portion of your insurance covers the damage to your vehicle.
• Comprehensive claims involve theft, vandalism, natural disasters and other non-driving-related claims. For instance, someone breaks your car windows or a tree branch falls on the roof of your car during a storm.
• Liability claims involve damage to other people’s property or injury. For example, in a crash with another driver, the damage to their car is covered by your liability insurance if you’re at fault. It also covers their injuries and damage to others' property, like buildings or bicycles.
• Personal injury protection (PIP) claims are for your or your passengers’ injuries in an accident, regardless of fault.
• Uninsured/underinsured motorist claims involve an accident in which the other driver doesn’t have insurance or has insufficient insurance. This covers their portion, which their insurance should have paid for.

When to file a car insurance claim

You should always file a car insurance claim right away. Even if your accident was late at night, your car insurance company most likely has a 24-hour claims line you can call to report the incident right away. You may also be able to file it online.

Why should you file the claim right away? A claims adjuster needs to investigate and examine the damage as soon as possible after it occurs. As time passes and weather and other factors set in, it may be hard to see exactly what caused the accident and what caused other things. 

Also, it’s a timing issue. The quicker you get your claim in, the quicker the process starts, and you can get your payout. This is especially important if there are multiple parties involved in the accident. If that’s the case, there are several different insurance companies and claims adjusters doing their due diligence, which takes time.

If a storm or natural disaster caused the damage to your car, chances are a lot of other people are also filing claims simultaneously. Filing quickly ensures the insurance company is aware and can start processing your claim.

When not to file a car insurance claim

Sometimes, filing a claim might work against you. 

Here’s a hypothetical example.

A tree branch falls on the hood of Maria’s car during a windstorm, doing $350 worth of damage. Maria has a $500 comprehensive deductible. Maria would have to pay the first $500, and the damage is below that amount. Her insurance company would deny the claim.

“The deductible is the amount of a loss you have chosen to retain, so insurance would not pay for damage under that amount,” McChristian says.

Even if Maria’s damage exceeded her deductible, and the repairs cost $600, the claim might not be worthwhile. Maria’s insurance company will accept the claim and pay $200. Maria will pay the other $500. She saved $200 on the repairs, but odds are good that her insurance rates will increase.

The rate increase that results from a claim may negate the financial benefits of having filed the claim.

What information do you need to file a car accident claim?

Have all this information ready to go when you call the insurance company to report the accident and file your claim:

• Your car insurance policy number
• The other driver’s name and insurance information, if there was a collision with another party
• Location and time of the accident
• Police report, if there is one
• Names and contact information for witnesses
• Photos of the damage and the location

“The insurance company will ask you to document your claim. They want to pay what they owe, and there would need to be proof of damage,” McChristian says. “Depending on the severity of damage to your car, you may be asked to send photos to your insurer.” 

The insurance company will also have an accident report for you to complete.

How to file a car insurance claim

To file a car insurance claim, take these steps:

• Call your insurance company’s claims number, even if it’s late at night; there is probably a 24-hour claims hotline, or file online or through the mobile app
• Provide your policy number and vehicle information
• Provide the other party’s name and insurance information, if applicable
• Wait to be contacted by your adjuster
• Provide all documentation the claims adjuster asks for, including any photos or videos
• Get estimates from a reputable car repair shop; your insurer may offer a list of approved places
• Meet all deadlines
• Keep track of all conversations you have with the insurance company

How long does a car insurance claim take?

Most states have laws limiting the time an insurance company has to settle a car insurance claim. In many states, it’s simply a reasonable amount of time, but some have specific periods, often 30 days. 

It may take longer if the accident involved multiple parties or serious injuries and many medical bills or lawsuits. With a relatively simple claim involving just your car, you can expect to get your payout within a couple of weeks.

How long do you have to file a car insurance claim?

How long you have to file a car insurance claim will depend on your insurance company and the state where you live. Most states will give you up to two years to file a claim, but it’s not recommended. You should always file your claim right away, if possible. The more time that goes by, the harder it is for the claims adjuster to know what the damage to your vehicle was truly caused by. If rust sets in or weather causes further damage, your claim could be denied.

Also, if other people were involved and there are witnesses or other parties that need to be interviewed, the passage of time makes this all more difficult.

Common mistakes to avoid while filing a claim

Try to avoid these common mistakes when filing your claim. It could result in your claim being delayed or even denied.

• Not filing promptly: The longer you wait, the harder it might be to prove fault or collect information related to your claim.
• Not collecting enough evidence: The more information you can provide to the insurance company, the better. Take many pictures and videos of your car, the surroundings, the intersection and the other vehicle(s).
• Admitting fault prematurely: It’s best not to say too much and let the insurance adjusters determine fault, if there’s any question. Don’t admit fault readily, even if you think maybe you were. This could result in the claim not going your way.
• Not understanding your coverage: Familiarize yourself with your policy throughout the year so you are knowledgeable. Sometimes the insurance company might make a mistake, and bringing it to their attention could save you money in the long run. In particular, you should “know your deductible amount,” McChristian says.  

Tips for a smooth auto insurance claim process

1. Be honest and detailed. Never try to hide or withhold anything from your insurance company. It all comes out eventually. Insurance adjusters will conduct a detailed inspection, which can reveal the causes of damage and often determine fault. Eyewitnesses will also be interviewed. You don’t want to do anything that could jeopardize your claim and be considered insurance fraud, which has serious consequences.
2. Keep copies of all communication. The claims process can get confusing and drag on, especially if multiple parties are involved in an accident. Document all your phone calls, emails and correspondence in a log with the dates and who you spoke to. This will make it easier to track the progress and hold the insurance company accountable if any errors are made.
3. Use approved repair shops. Your insurance company may have a list of auto repair shops they work with, so be sure to ask. “Qualified mechanics can pinpoint damage that may not be easily visible, so this is a good step to make sure your vehicle is properly assessed,” McChristian says. You aren’t required to use these shops, but it does make the process easier.
4. Review your policy regularly. Review your policy regularly to ensure you have the coverage you need and know how much you must pay (the deductible) if you file a claim. Don’t assume you have all the coverage you need; things like coverage for a rental car during repairs are not automatically included.

What to do when a car insurance company denies a claim

If your car insurance company denies a claim, don't panic. You have the right to appeal a claims decision as part of your insurance contract. There is a process you will need to follow. 

1. Find out the reason for the denial. This should be provided to you in writing, but if it’s unclear, contact your adjuster for details. 
2. Review your coverage. If your claim was denied because you don’t have the right coverage, for example, you carry only liability coverage and are filing a claim for damage to your car, you will not have any grounds to appeal. 
3. Ask the adjuster to review it again. If you believe the claim was wrongfully denied, discuss it with your adjuster. Present your evidence and ask them to review it again.
4. File a formal appeal. If the claim continues to be denied, you can appeal. The process for this will be laid out in your insurance contract, but it generally involves writing an appeal letter and providing evidence as to why you think the decision is incorrect.
5. Get outside help. If you don’t get anywhere with an appeal, contact your state’s insurance department for help or consider hiring a lawyer. Bear in mind that a lawyer will take a portion of any settlement you receive.

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