How Do Insurance Claims Work? Everything You Need to Know
An insurance claim is the process of notifying your insurance company that you have been in an accident. The claim starts the process of accessing your benefits so you can cover any damage or injury you experience.
how do insurance claims work?
An insurance claim is a request to access your benefits. If you are in an accident and want your insurance company to pay for your damages, you will need to file a claim with them. To file a claim, you will need the following information:
- names of everyone involved.
- your insurance policy number.
- insurance information for the other driver.
- details of the accident .
- a copy of the police report.
Although not required, it may also be helpful to take photographs or video evidence of the accident scene.
Once you submit an insurance claim, they will begin an investigation. They will consider the damage to the vehicle, as well as the cause of the accident. once they have gathered all the information they need, they will accept or reject your claim. if they accept the claim, they will provide you with a check based on the type of insurance you have and the value of the damages.
If they deny the claim, it means they won’t pay anything. you have the right to ask them why they denied your claim. You can also file an appeal if you think they don’t have all the information they need.
what does an insurance claim cover?
What your insurance claim will cover depends on the type of insurance you have. Here are some types of insurance coverage:
- Bodily Injury: Bodily Injury covers any medical injury you cause to another driver. the other driver will file a claim with your insurance company to access these benefits.
- Property Damage: Property damage covers any property damage you cause to another driver. again, the other driver will contact their insurance company for this.
- Comprehensive: A comprehensive policy covers damage to your own vehicle that is not due to an accident. this can include theft, vandalism, a tree falling on your vehicle, or flooding.
- Collision: A collision policy covers damage to your own vehicle due to an accident, Even if you are at fault, you will file an insurance claim with your own provider to access benefits.
how no-fault laws affect insurance claims
Some states follow no-fault insurance laws. this may change the process in which you file your insurance claim. If you live in a state that follows no-fault laws, you will file a claim with your own insurance provider after an accident, regardless of who is at fault. This means that instead of collecting the other driver’s insurance information and notifying them of an injury or damage they caused, you’ll file a claim with your carrier.
what to expect after filing a claim
once you file an insurance claim, your provider will assign an adjuster to your account. You will work closely with the adjuster to receive your benefits. If you have a car loan, or handle a lease, you may need your lender to be part of the process. According to the Insurance Information Institute, your lender may even have control over payments, including where the check is sent or how repairs are made.
If you have comprehensive coverage and are filing a claim to cover your damages after an accident, you will also need to pay your deductible. this is the prearranged amount you pay out of pocket before your insurance company covers the rest.
Different insurance companies have different requirements throughout the claims process. for example, you may or may not be required to take your vehicle to an approved mechanic, depending on the requirements of your insurance policy. It’s also important to know your provider’s filing requirements. Most insurance providers have a time limit for filing a claim after an accident.
how does an insurance claim work if your car is total
If your damages cost more than the full value of your vehicle, the insurance company may consider it totaled. This means that instead of paying to repair your vehicle, they will issue you a payment equal to its value. if you have a loan on your vehicle, you can pay off the remaining balance. If you own your vehicle, you can use the check to purchase another vehicle of similar value.
will filing a claim increase your insurance rates?
Your insurance company may increase your rates after a claim. if you have numerous claims on your record, you can expect an even higher rate increase.
However, according to Investopedia, the cause of the accident can make a difference in whether or not your insurance company increases your rates. If you cause harm to someone else in an accident, you can expect increased rates. however, if someone hits your vehicle while it’s parked at your home, the insurance company may not increase your rates because it’s not your fault.
Fortunately, you don’t have to stay with your current carrier if your rates increase after an insurance claim. you may be able to find more affordable rates, even on your current insurance claim, with another insurance provider. compare prices and look at specific factors like:
- price of the policy.
- level of coverage offered.
- deductible amount.
- policy requirements to file a claim.
- customer satisfaction scores.
- claim scores.
- timeliness when speaking with agents
- if discounts are available
You can get information about any insurance company you’re considering through companies like a.m. best company and j.d. Energy. Evaluate past and current customer reviews when comparing different providers.
Understanding how claims are processed is an important part of purchasing a policy. When you choose the right insurance company, you’ll likely have a claims process that’s easy and convenient.
Check this out if you need additional information, resources, or guidance on auto insurance.
insurance claim | investopedia.com
Understanding the Insurance Claims Payment Process | iii.org
Do insurance rates go up after a no-fault accident? | caranddriver.com
collision deductible: everything you need to know | caranddriver.com