How Do Car Insurance Claims Work?
- Car insurance is mandatory in most states as a way to manage costs associated with accidents and injuries involving automobiles. If you are involved in an accident or if there is damage to your vehicle caused by a falling object, such as a tree limb, you may choose to pay for the repairs yourself, or you may file a claim with your insurance provider for compensation. Each insurance company has its own set of guidelines, and policies do have different limits, but the claim process is usually similar.
- After you have gathered all the information about the claim, contact your insurance company. Some companies allow you to call in the information to the insurance agent or a centralized call center. Other insurance companies have a website available to gather information or upload photos. A claims adjuster reviews the claim and investigates if necessary. Often, the adjuster will inspect the vehicle and photograph the damage in order to estimate the cost of repairs. Sometimes, the adjuster will accept the repair estimate from the auto repair shop instead of inspecting the vehicle.
- In cases involving several vehicles or multiple injuries, the adjuster may request police and/or hospital records. They may even interview witnesses and those involved in the accident in order to obtain an accurate understanding of what happened and who may be at fault. Once the adjuster has all the necessary information, she will determine if the damages apply under the particular policy restrictions and limits. If there is coverage, the claim transfers to another department for processing and payment. The claims processor mails the payment to the agent's office or directly to the claimant along with a letter of explanation. You have the option to accept or refuse the payment as settlement of your claim.
- Most claims settle in a matter of days or weeks. However, if there are unusual circumstances or uncertainty about who is at fault, the claim may take longer. Additionally, if you choose to refuse the offer of settlement, the claim process may take longer to complete. You can help limit the length of time by gathering all the necessary facts at the scene of the accident and responding to the adjusters inquiries in a timely fashion. If possible, obtain the names and telephone numbers of any eyewitnesses at the scene to support your claim if there is dispute.
- Stay involved in the process by checking in with your claims adjuster to see how the claim is progressing. Claims adjusters often manage a number of claims at a time and often wait for outside agencies, such as hospitals or police departments, to respond to information requests.