What to Do After a Car Accident

When your car is a total loss, it means the car cannot be repaired safely or that repairs would be too expensive compared to the vehicle's value. If your car is declared a total loss due to a covered scenario, the insurance company will pay you the car's actual cash value and will usually sell the vehicle as scrap.

Once you file a claim, the insurance company will determine whether the car is a total loss. Depending on your state's laws, your car may be totaled if the cost of repairs exceeds a certain percentage of the car's value, such as 75%. If your state does not have a specific total loss threshold, your vehicle will be considered a total loss if the cost of repairs plus the salvage value is greater than the car's actual cash value (ACV).

Insurance Payout for a Total Loss Claim

For a car that was totaled by an accident, you will be reimbursed by the other driver's property damage liability insurance if they were at-fault or your own collision insurance if you caused the wreck.

If the damage was caused by something other than an accident, like vandalism or a natural disaster, you can receive a total loss payout from your own comprehensive coverage.

What to Do If Your Car Is a Total Loss

• If you think the insurer undervalued your car, you can present evidence and negotiate.

• You will likely need to send your insurance company your keys, remove your license plates and personal items from the car, and sign over the title.

• If your car was leased or financed and you have gap insurance or loan/lease payoff coverage, file a claim.

For more information, check out WalletHub's complete guide to totaled cars.

If someone else is driving your car and gets in an accident, your car insurance will likely cover any resulting damage, which means the claim will go on your insurance record and could affect your rates. On the other hand, if your car is taken without permission or the driver is not licensed, the driver is responsible.

Remember, using your insurance means you are liable for paying your deductible, even if it's a friend (and not you personally) who crashes your car. Fortunately, your friend's insurance can help if the damage exceeds your coverage. For example, if your policy covers up to $45,000 and the damage is $55,000, the driver's insurance can cover the final $10,000.

However, that isn't the case if you've specifically excluded the driver from your policy. You might choose to leave someone off your insurance because they are a high-risk driver and expensive to insure - like a new driver with multiple speeding tickets, or someone with DUIs on his or her driving record. If that excluded driver crashes your car, your insurance company will refuse to cover the damage.

Unfortunately, an accident can affect your insurance rates even if you aren't driving. One accident won't necessarily raise your premium by itself. But if you were in another accident not too long before someone else crashes your car, your company is likely to raise your premium, retract your safe-driver discount, or even drop your policy.

At the end of the day, one of the best things you can do is consider adding people to your insurance if they regularly use your car. You don't want to end up with a huge bill if your insurance company denies your claim because of who was driving. Also, make sure your friends have a valid driver's license and car insurance if they're using your car.

If someone hit your parked car, you should file an accident report with the police, even if an officer can't come to the scene. A police report is not always required to file a claim, but it does make the process easier and might come in handy if there is more damage than you initially think.

If the person who hit your car left a note, their insurance company should pay for your expenses with property damage liability insurance. But if the incident was a hit-and-run, you or your insurance company will end up footing the bill.

What to Do After Someone Hits Your Parked Car

1. Document the accident at the scene as much as possible.

Take photos of the note left by the other driver, if there was one. Photograph any damage to your car and the overall scene, including a view of the roadway, the position of your vehicle, and any wreckage or skid marks. If possible, get information from witnesses, including names, contact details, and a brief statement. Note the date, time, location, weather conditions, and any other relevant details, too.

2. Contact the police to file an accident report.

An officer might be dispatched to the scene to investigate and write a report, or you might be asked to provide details to your local district in person or online.

3. Begin the claims process with your insurance company.

Your insurance company will guide you through the claims process and contact the other driver's insurance provider on your behalf, if the person who hit your car left a note. If someone hit your car and didn't leave a note, you'll have to file a claim using your own collision coverage or uninsured motorist protection, assuming you carry these coverage types.

Insurance To Use If Someone Hits Your Parked Car

If your car is hit while parked, you can use your collision insurance or uninsured/underinsured motorist coverage to pay for the damage. Both types of coverage typically have a deductible, though, which means you'll probably pay something out of pocket to get your car fixed. You'll also be subject to your policy limits, so you'll be responsible for any cost that exceeds your coverage terms.

Finally, it's important to note that uninsured motorist property damage coverage is not available in some states. And in other states where it is available, you might be unable to use it if the at-fault driver is unidentified. 

After a car accident that's not your fault, first make sure you're safe and check everyone in your car for injuries. Next, call the police, take pictures of the scene, and exchange insurance information with the at-fault driver so you can file a claim for any injuries or property damage with their insurer. You should also report the accident to your insurance company in case you need to file a collision, personal injury protection, or MedPay claim with your own policy.

What to Do After a Car Accident That's Not Your Fault 

1. Move your car away from oncoming traffic and address any injuries.
2. Call the police and file a report.
3. Get the other driver's insurance information.
4. Take pictures of the scene and damage to the cars.
5. Report the accident to your insurance company.
6. Document any accident-related expenses.
7. File a property damage and/or bodily injury claim with the other driver's insurance company.

Filing an Insurance Claim When You're Not at Fault

If an accident is not your fault, you can file a claim with the at-fault driver's liability insurance. This will cover the cost of vehicle repairs and medical bills up to the limits of the driver's policy.

Because it can take a long time for an insurance adjuster to officially determine fault, however, you can initially file a collision or personal injury claim with your own insurer to cover vehicle repairs and medical expenses, regardless of fault. Once fault is determined, your insurance company will recover the expenses from the at-fault driver's insurer, and your deductible will be refunded. 

Keep in mind that in no-fault states, most medical expenses are paid for by your own insurance policy, regardless of who is at fault. And if the driver is uninsured or doesn't have enough insurance to cover your costs, you can file a claim with your uninsured/underinsured motorist coverage, if you have it.

Yes, someone can sue you for a car accident even if you have insurance. Unless you live in a no-fault state, you can easily be sued for financial and personal damages in car accidents that you cause. If you have a liability insurance policy (which is required in most states), your insurance company will likely pay for an attorney to defend you in court. However, there are certain situations where they aren't obligated to do so.

When Insurance Doesn't Have to Pay for a Lawyer

• You did not notify the insurance company within a certain timeframe, which can be anywhere from 5-30 days, depending on the specifics of the policy.
• The cost of the other driver's damages exceeds the limits of your policy.
• You intentionally caused the accident.

If you have car insurance and you're sued after a car accident that you caused, it's likely for one of two reasons: either you don't have enough insurance to cover all of the other driver's expenses or the insurance claim process is taking a long time. If the first applies to you, your insurance company is under no obligation to help you once they've paid up to the limits of your policy.

However, the rules for filing a lawsuit after a car accident are different in no-fault states. No-fault states require drivers to carry personal injury protection (PIP) insurance, which provides coverage for minor injuries sustained in an accident. This eliminates the need for small personal injury cases to go to court, as every driver is protected by their own insurance policy. In these 12 states, you can only file a lawsuit against the other driver if your injuries are severe or your economic damages have exceeded a certain amount. The specific thresholds for each scenario vary depending on the state.

While you can't control whether or not the other driver will sue you after an accident that you caused, there are steps that you can take to put yourself in the best position possible. The most important things are to notify your insurance company of the accident as soon as possible and to understand the limits of your policy. If you do end up being sued, take the time to understand what exactly you're being sued for and what steps your insurer is taking to help you.

Drivers usually have 30 days to report a car accident to their insurance provider. Policies don't always give a specific timeframe, though, and could simply state that a driver needs to report the accident “promptly.”

You should almost always report accidents to your insurance as soon as possible, since waiting too long could jeopardize a future claim or cause an at-fault driver to lose certain protections. There are certain situations where it might not be necessary, however.

When You Can Skip Notifying Insurance (All Must Be True)

1. The accident happened with just your vehicle.
2. It was on your property.
3. There were no injuries involved.
4. The only damage was to your property.

Reporting a Car Accident vs. Filing a Claim

A common misconception is that reporting a car accident to insurance is the same as filing a claim. While filing a claim means you're making a formal request to an insurance company for compensation, reporting an accident simply means you're notifying your insurer that it happened.

In most cases, you'll want to report an accident as soon as possible in order to get the claims process started. But even if you don't initially plan on filing a claim, you should notify your insurance company just in case you discover additional damage or change your mind.

What Happens If You Delay Reporting a Car Accident?

If you wait too long to report your accident to insurance, it could cause problems down the road. For example, if you don't initially report but realize later on that you need to file a claim, the insurance company has no way of knowing whether the damage is the result of the accident or something else that happened later. Or, if the accident was your fault and the other driver files a claim against you later on, your insurance company might deny you certain protections because you failed to promptly report.

Even if you don't think you need to report the accident, it's always in your best interest to do so. Many insurance companies have mobile apps and 24-hour hotlines to make the reporting process as quick and easy as possible. Also, keep in mind that even though you're not legally obligated to notify your insurance company after a car accident, most states will require you to at least report it to the police if anyone is injured or if there is a certain amount of property damage.

When you hit a deer, you should move your car to a safe location and call the police to report the incident. You should also check your vehicle for damage after hitting a deer and call your insurance company as soon as possible if you need to file a comprehensive insurance claim.

No matter what, you should not approach the deer, since it can still injure you even if it's wounded. You should not leave the scene after hitting a deer, either, since it could potentially be injured further or become a hazard for other drivers.

What to Do When You Hit a Deer

1. Move your car away from traffic.
2. Call the police to remove the deer from the road and file a report.
3. Check your vehicle for damage and call for a tow if it's undriveable.
4. Document the accident scene, damage to your car, or any injuries.
5. Call your insurance company to report the incident.
6. File a comprehensive insurance claim, if your vehicle is damaged.

In order for the damage to be covered by your comprehensive insurance, your car must make physical contact with the deer. If you swerve to miss the deer and hit another car or object, you will need to file a claim with your collision insurance. Because hitting a deer is usually considered to be a random event, it will not significantly affect your insurance rates.

You could have as little as 30 days to file a car insurance claim, or you could have months or even two to three years. Your policy probably states that you should report an accident or possible claim right away, but reporting an accident is different than filing a claim. After “promptly” reporting, you'll have some time to file the official claim. Check your policy or contact your insurer directly for exact deadlines.

If you intend to file a claim in court, you typically have two to three years after the accident to pursue damages in a lawsuit. Each state has its own statute of limitations for filing a claim in court, and deadlines can be different for personal injury and property damage claims. State laws range from one to six years, but two to three is most common.

Why is there a time limit on car insurance claims?

Time limits are in place to protect the insurance company's ability to investigate a claim. Your insurer will collect a lot of information about the accident, including witness statements, police reports, photos of damage, medical and auto repair bills, and more. The insurance company may also send an adjuster to the scene of the accident or to inspect damaged property in person. As time goes on, evidence degrades and memories become foggy. Time limits make sure the accident can be thoroughly and accurately investigated.

There are reasons you may want to delay filing a claim, though. It may take weeks for the symptoms of certain injuries to show. You may also be getting treatments on a doctor's schedule or want to seek a second medical opinion. Property damage is usually easier to see, but you may not find out about major problems with the alignment, suspension, or exhaust system until your car is in the shop weeks later. Since most insurers won't allow you to file more than one claim per accident, it might be better to delay filing, so you don't leave out something insurance would have covered.

While there are situations when it makes sense to wait, it's almost always in your best interest to file a claim with your insurance company right away. The reality is the longer you wait, the more likely it is the insurance company will deny your claim. But you can still file a claim and even get it approved as long as your delay doesn't prevent the insurer from investigating properly.

Yes, you should call your insurance company after a minor accident. You should contact your insurer anytime you're in an accident involving another driver, but it's even more important to call promptly if the accident resulted in property damage or injuries. The only time it might be worth skipping a call to your car insurance company is if you damaged only your own car, there are no injuries, and property damage is minimal.

There are two big reasons you should always call your car insurance company if you get into an accident involving another driver, even a minor accident:

1. You might want to file a claim

Even if the accident seems minor at the scene, you might decide later that you want or need to file a claim. Accident-related injuries like whiplash can have delayed symptoms that don't show up right away, for example. Or, maybe a dent or scratch doesn't bother you at first, but when you find out the impact on resale value, you change your mind.

2. The other driver might file a claim

A handshake agreement at the scene doesn't prevent the other driver from filing a claim against your policy. Your insurance company is there to help defend you, either with the other driver's insurer or in court.

If you don't report an accident right away, your insurance company may be able to deny any claims you file and won't represent you in a claim or lawsuit, leaving you to pay out of pocket. Your insurance company can say your delay in reporting resulted in them being unable to properly investigate your claim, so they are no longer obligated to cover you.

You can tell who is at fault in a car accident by considering driver and witness statements, dash cam footage, the location of vehicle damage, the position of the vehicles, or any citations issued after the accident. Insurance companies will also use adjustors and accident reconstruction experts to determine fault in car accidents. These expects consider factors such as the point of impact, evidence of sudden acceleration, and the angle of the steering wheel.

How to Determine Fault in a Car Accident

• Take pictures of the vehicle damage and accident scene.
• Find witnesses who saw what happened.
• Give your statement to the police and file a report, to aid in their investigation.
• Provide the insurance adjuster with all of your evidence and information.

Who Determines Fault After a Car Accident?

When you file a claim after a car accident, the insurance company will assign an adjuster to your case. Adjustors evaluate all of the evidence related to the accident and determine who is at fault.

Insurance adjusters make this decision using the legal definition of negligence, which is when a driver fails to exercise the same amount of caution that a “reasonable person” would under the same circumstances.

States have different ways of handling at-fault accidents based on the degree of negligence shown by each driver. Each system affects how damages can be awarded differently, too.

State Negligence Laws & Fault in Car Accidents

Comparative Negligence

Expenses are covered based on the degree of responsibility that each driver has for the accident. Used in 12 states, including California and Florida.

Modified Comparative Negligence

Your expenses will only be covered by the other driver's insurance if you are less than 51% at fault. Used in 33 states, including Texas and Illinois.

Contributory Negligence

You cannot recoup expenses at all if you share any blame for the accident. Used in five states, including Maryland and Virginia, plus the District of Columbia.

How to Make the Fault Determination Process Easier

The more information and evidence that you gather after a car accident, the easier the insurance adjustor's job will be. Since liability can sometimes come down to your word versus the other driver's, get the names and contact information of any witnesses to the accident. Also, prior to leaving the scene, take plenty of pictures of the damage to both vehicles, the debris from the accident, and anything in your surroundings that could be relevant.

You might need to call the police and file a report, too, depending on the extent of any injuries and property damage. Officers might issue citations as they investigate the accident, and while a citation doesn't legally prove who was at fault, it could be used as evidence of negligence in a lawsuit.