Auto Insurance Claims: Everything You Need to Know

Car accidents happen to one in three drivers every 3-5 years. Knowing how to navigate the auto insurance claims process can save you thousands and reduce stress during an already difficult time. This guide covers everything from the accident scene to final settlement.

Types of Auto Insurance Claims

• Collision claims: Accidents involving your car and another vehicle or object
• Comprehensive claims: Non-collision damage (theft, vandalism, weather, animals)
• Liability claims: When you're at fault and damage others' property/cause injuries
• Uninsured/underinsured motorist: Hit by driver without adequate insurance
• Personal Injury Protection (PIP): Medical expenses regardless of fault
• Medical payments: Medical costs for you and passengers

At the Accident Scene: Immediate Steps

• Check for injuries - call 911 if anyone is hurt
• Move to safety if possible without leaving the scene
• Call police (required for injuries, fatalities, or significant damage)
• DO NOT admit fault - even apologizing can be used against you
• Exchange information with other driver(s)
• Document everything with photos and notes
• Get witness names and contact information
• Get police report number

Information to Collect at the Scene

• Other driver's name, phone, address
• Insurance company and policy number
• Driver's license number
• Vehicle make, model, color, license plate
• Location of damage on all vehicles
• Photos: all vehicles, damage close-ups, scene overview, traffic signs, skid marks
• Witness names and contact info
• Police officer name and badge number
• Police report number

Filing Your Auto Insurance Claim

Decide whether to file through your insurance or the other driver's:

• Your insurance (first-party claim): Faster processing, use your own policy
• Other driver's insurance (third-party claim): May take longer, but no deductible if they're at fault
• Both: Sometimes necessary for complex accidents

Most insurers allow claims via mobile app (fastest), phone hotline (24/7), online portal, or through your agent.

The Claims Process Timeline

• Day 1: Report accident, file claim
• Day 1-3: Adjuster assigned, inspection scheduled
• Day 3-7: Vehicle inspected (may use photo estimates)
• Day 7-14: Estimate provided, repair authorization
• Day 14-30: Repairs completed (varies by damage)
• Settlement: Final payment after repairs verified

Understanding Fault Determination

How insurance companies determine who's at fault:

• Police report findings
• Photos and physical evidence
• Witness statements
• Traffic laws and right-of-way
• Vehicle damage patterns
• Your statement vs. other driver's statement

Fault can be 100% one driver or split (comparative negligence). In split-fault states, you can recover damages minus your percentage of fault.

Repair Process Options

• Insurer-preferred shops: Often faster, guaranteed repairs, direct billing
• Your choice of shop: May need pre-approval, you manage process
• Cash settlement: Take payment instead of repairs (but less than actual repair cost)

You have the right to choose your repair shop, but preferred shops often provide conveniences like rental car coordination and repair warranties.

OEM vs. Aftermarket Parts

Understand what parts will be used in repairs:

• OEM (Original Equipment Manufacturer): Made by car manufacturer, highest quality, more expensive
• Aftermarket: Made by third parties, lower cost, quality varies
• Recycled/Salvage: Used parts from other vehicles
• Policy may specify which parts are covered
• Some states require OEM for newer vehicles

When Your Car Is Totaled

A car is totaled when repair costs exceed 70-80% of its value (varies by state).

• Insurer pays Actual Cash Value (ACV) - market value before accident
• You keep deductible from payout
• Can negotiate if you disagree with valuation
• Provide evidence of higher value (recent comps, condition records)
• May have option to keep salvage (reduces payout)

Rental Car Coverage

If your policy includes rental reimbursement:

• Coverage starts when your car goes to shop
• Daily limit applies (typically $30-$50/day)
• Maximum days covered (often 30 days)
• Choose rental that fits within limit or pay difference
• If other driver at fault, their insurance may cover rental

Injury Claims After Accidents

• Seek medical attention immediately - even if you feel fine
• Document all injuries and treatment
• Keep records of medical bills, lost wages, pain/suffering
• PIP/Medical Payments: Your own coverage regardless of fault
• Bodily Injury claim: Against at-fault driver's liability
• Consider consulting personal injury attorney for serious injuries

Diminished Value Claims

Your car may be worth less after an accident, even when perfectly repaired. Diminished value claims compensate for this loss.

• Not available in all states
• Usually must file against at-fault driver's insurance
• Need appraisal showing pre and post-accident values
• Success varies widely by state and insurer
• Worth pursuing for newer, high-value vehicles

Common Auto Claim Mistakes

• Admitting fault at the scene
• Not getting police report
• Failing to document thoroughly with photos
• Accepting first settlement offer without review
• Not reporting injuries immediately
• Giving recorded statements without preparation
• Missing claim filing deadlines
• Not understanding your coverage before accident

How Accidents Affect Your Premium

• At-fault accidents: Premium increases 20-50%, lasts 3-5 years
• Not-at-fault accidents: May still see small increase in some states
• Comprehensive claims (theft, weather): Usually minimal impact
• Accident forgiveness: Some insurers waive first at-fault accident
• Multiple claims: Can lead to non-renewal

Key Takeaways

• Never admit fault at the accident scene
• Document everything with photos, notes, and witness info
• Report claims promptly - most policies require timely notification
• Know your coverage before an accident happens
• You can choose your own repair shop
• Negotiate if you disagree with total loss valuation
• Consider gap insurance for financed vehicles
• Serious injuries may warrant attorney consultation