About the Claims Process

Accidents happen—and the odds dictate that sooner or later an auto accident will happen to you.  With over 220 million vehicles clogging U.S. roadways, over 6 million auto accidents happen every year.  Half of those 6 million accidents result in injury.  The bottom line?  It helps to know about the auto insurance claims process before you get involved in an accident.  Read on for more information about auto accident insurance claim and auto insurance claim rights, so that you know your rights beforehand.

Plan Ahead and Get Prepared

Take some time to thoroughly read over your auto insurance policy.  We suggest underlining unclear sentences and paragraphs so you can seek clarification.  Don’t be afraid to call up your insurer and ask pointed questions about what happens after you’re involved in an accident.

So You’ve Been Involved in an Accident

First, remember it’s not the end of the world.  The claims process for damage to your vehicle is actually quite simple: You file a claim, an adjuster from the insurance company comes to determine the damage repair costs, and then your insurance company cuts a check for you to pay for the repairs.  Below, we’ll go into more detail, with a 9-step claims process checklist.

Step 1: Assess the Situation at the Accident Scene

If someone appears to be injured, call 911 immediately.  If no one’s hurt and the damage seems very minor, you might consider not filing a claim at all.  This has the advantage of not getting your insurance company involved and hence not risking a hike in your premium payment.  However, if there is sufficient damage to either vehicle, you’ll want to call 911 and get the police involved.  You’ll need a police report in order to file a claim.

Step 2: Gather Information

Be sure to exchange license plate numbers, with the other party or parties.  You’ll also want to get their contact information and driver’s license info.  If they have an insurance card, you’ll want to copy down that information as well.  Most importantly: Get a working phone number!  Tip: ask them to text message your cell phone at the scene, if possible.

Step 3: Look For Witnesses

If there were witnesses who saw the accident happen, you’ll want to move quickly to get their contact information and their story.  This could be essential in backing up your claim.Con

Step 4: Get it in Writing

Oftentimes, police officers attempt to avoid taking an accident report when the total damage appears to below a certain amount.  Don’t let this happen to you!  Insist on an accident report and if the other driver is at fault, try to ensure the accident report indicates this.  You can then use the report as a backup information source if the other driver’s story should change.

Step 5:  Contact Your Insurance Company Promptly

If you own a cell phone, you might consider calling your insurer directly from the scene of the accident.  Just look up the number on your insurance ID card and get in touch with a representative.  Even if the other party is at fault, you should still contact your own insurer.  Chances are you’ll receive more prompt service that way, and you sort out ultimate financial responsibility at a later date.  If you don’t have comprehensive coverage, then it will be up to you to file a claim against the other party’s insurer as well.

If you have no-fault insurance, then you must contact your insurer promptly.  This type of insurance has a threshold below which your insurer will pay for all damage.  Above that threshold, you may seek restitution from the other party.

Step 6:  Itemize Damage, Begin to Keep Records, File The Claim
At this point, you’ll want to file the proper claims both with your insurance company and the other party’s (if they were at fault.)  Make sure to keep track of all communications with insurers.  For a claim against another party, keep track of items your insurer won’t pay, including your collision insurance deductible, time off work, auto rental differential and the amount of your diminished resale value.

Step 7: Prepare for a Call From the Other Party’s Insurer

If your version of the accident should differ with the other party’s, be prepared for a call from their insurer.  Prepare and commit to writing exactly what you want to tell the representative.  Speak truthfully, but don’t volunteer more information than is necessary to an accurate accounting of the accident.  Be sure to record the call and note the name of the rep you speak with.  If a lawsuit should follow, have your recording transcribed so you can remember exactly what you said during the call.

Step 8: Meet With The Claims Adjuster

An adjuster from your insurance company or the other party’s company will arrive to assess the damage and determine whether or not your vehicle is “totalled.” Then, the insurance company will then cut a check for the amount of the repair, minus any collision deductible amount.

Should the adjuster determine the car is totaled, he or she will estimate your compensation based on the actual cash value (or depreciated value) of the vehicle before the accident.  In practice, this means you should then be able to buy a similar used car.  Should you have coverage for full “replacement value,” you’ll be able to then purchase a new car.

Step 9: Check in Hand? Get Your Repairs Done.

Congratulations!  You’ve successfully navigated the auto insurance claims process.  Be sure to continue to keep good records of your repair job and don’t fail to reimburse your insurer if the cost of your repairs should amount to less than the the check they cut you.

Want to compare claims processes among different insurers?  Visit our quotes page and get started.