Car Insurance Claims

It is worth it to file a car insurance claim if you were injured, the cost of the damage is more than you can afford to pay out of pocket, or another driver was at fault. On the other hand, it's probably not worth filing a claim for minor property damage, especially if the cost is close to your deductible. Since filing a car insurance claim may lead to a premium increase in the future, it's important to weigh the costs and benefits before deciding.

When It's Worth It to File a Car Insurance Claim

• The other driver was at fault and you're filing a claim with their insurance company.
• Your property was damaged and the cost of repairs is significantly higher than your deductible.
• You were injured in an accident.

It's important to note that filing a claim with the other driver's liability insurance will not cause your rates to increase. Additionally, it's usually a good idea to file an insurance claim if you're hurt. Even seemingly minor injuries may be more serious than they first appear, and medical bills can quickly add up.

On the other hand, if another driver was not responsible and your vehicle is only slightly damaged, it's probably best to pay out of pocket rather than risk a future rate increase. For instance, if you have a $200 comprehensive deductible and a deer caused $300 in damage to your car, filing a claim won't be very beneficial. But if the deer caused $1,200 in damage and you don't have a lot of savings, filing a claim is worth it for your specific situation.

To learn more, check out WalletHub's guide to car insurance claims.

Filing a claim will increase car insurance premiums from 3% to 32% on average for three to five years in almost all cases. How much your rate goes up depends on several factors, like the claim type and amount, your insurance company, your claims history, your location, and whether or not you have accident forgiveness.

The most significant factors affecting how much your rates go up after an accident are the claim type and amount. Accidents that you cause will raise your premium the most, especially if the damages are over $2,000. Although prices don't jump as much when you're not at fault or the incident was beyond your control, you'll probably still see a rate increase.

It may seem unfair, but insurance companies are within their rights to raise your rates after a claim, even if the accident was not your fault. Insurers charge based on risk, and statistics show that you're more likely to make additional claims if you've recently filed one.

Some insurance companies charge more than others after not-at-fault accidents, though. Progressive charges the most, raising rates by more than 16% on average. State Farm, on the other hand, doesn't increase prices if their customer is not at fault.

Car insurance companies pay out claims by sending you a check, transferring the payment to your bank account, or paying the mechanic directly. Once your claim has been approved, you'll receive payment for the amount determined by your insurer. It typically takes about 30 days for an auto insurer to pay out a claim, but the exact timeframe can vary depending on the policyholder's state and the circumstances of the claim.

Most car insurance policies state a maximum amount that the insurer will pay for different types of claims. Once those limits are reached, you're responsible for covering the remaining expenses. In order to ensure that you have enough coverage, make sure to consider factors like your net worth, driving habits, and state laws when choosing your car insurance policy limits.

To learn more, check out WalletHub's guide to car insurance claims.

Fault affects car insurance claims by determining which driver's insurance company will cover the damage. In most states, the at-fault driver's liability insurance will cover everyone else's medical bills and vehicle repairs, and the at-fault driver will have to use other types of insurance to pay for their own expenses. No-fault states are a notable exception to this rule, since they require each driver to cover their own medical expenses after an accident, regardless of fault.

How Fault Affects Car Insurance Claims 

• If you are at fault, you have to file a claim with your own insurer to cover your expenses.
• If you are not at fault, then you'll file a claim with the other driver's liability insurance, though you can use your own insurance as well.
• If you live in a no-fault state, you have to use your own insurance to cover your medical bills, regardless of who is responsible for the accident.
• Fault can be shared, which may limit damages.

When a car insurance claim is filed after an accident, an insurance adjuster will investigate and make a determination of fault. If the adjuster determines that multiple people are at fault for the wreck, then the claim will be affected by your state's negligence laws. For example, some states do not allow you to collect damages after an accident if you did anything to contribute to it. Other states allow you to collect reduced damages based on your share of fault.

To learn more, check out WalletHub's guide to car insurance claims.

To negotiate a settlement with an insurance claims adjuster:

1. Start by filing a claim and sending a completed proof-of-loss form to your insurer as soon as possible, if you haven't already done so.
2. Wait to receive the insurance adjuster's settlement offer (exact timeframes vary by state).
3. Make a counteroffer if you are not satisfied with the adjuster's offer.
4. Provide the adjuster with any evidence or documentation supporting your counteroffer.
5. Reach a final settlement and put it in writing.

The best way to make the negotiation process move smoothly is to document your property damage and medical expenses as much as possible. The more evidence you have, the better your chances are of having your claim settled. Generally, bodily injury claims are more complicated to settle than property damage claims.

You should also remember that insurance companies don't always operate with your best interests in mind. So, don't feel obligated to accept the first settlement offer that they make, especially if you know that you're entitled to more.

If negotiations are unsuccessful, you can consider hiring an attorney to help you through the process. But if you think the insurer is acting in bad faith, then you should report them to your state's regulator.

The most common types of car insurance claims are accident claims, windshield-damage claims, theft-and-vandalism claims, animal-damage claims, and weather-related claims. By knowing about the most common types of claims, you can better decide what types of car insurance are best for you.

Types of Car Insurance Claims

• Accident Claims: These claims are generally filed with the at-fault driver's liability insurance. If you want to cover damage to your own car when you are at fault, you will need collision coverage.

• Windshield Damage Claims: Windshield damage is usually covered by comprehensive or collision insurance, but some states require windshield coverage to be sold separately. Damage to your windshield caused by another driver may be covered by that driver's liability coverage.

• Theft and Vandalism Claims: Theft and vandalism claims are covered by comprehensive insurance. You can also purchase anti-theft systems like alarms and GPS trackers to prevent theft and benefit from anti-theft insurance discounts.

• Animal Damage Claims: Animal damage is covered by comprehensive insurance. For example, comprehensive insurance has you covered if you hit an animal with your car or if animals break into and damage your car while it's parked.

• Weather-Related Claims: Damage from extreme weather like hail, hurricanes, tornados and earthquakes is covered by comprehensive insurance. If you live in an area that commonly experiences severe weather, you should consider purchasing this coverage.

To learn more, check out WalletHub's guide to car insurance claims.

No, you do not have to file a claim after an accident. Most car insurance companies require you to report accidents as soon as possible, but reporting an accident does not automatically mean that you are going to file a claim.

If you're trying to decide whether or not to file a claim, it's important to know how long your state allows you to wait. Depending on your state, you may have 1-6 years to file a bodily injury claim or 1-10 years to file a property damage claim.

Even though you don't have to file a claim immediately after an accident, it's typically in your best interest to do so. The longer you wait to file a claim, the more difficult it will be to investigate, which lowers your chances of receiving a settlement.

To learn more, check out WalletHub's guide to car insurance claims.

Yes, you should file an insurance claim for bumper damage if the cost of repairs is significantly higher than your deductible or another driver was at fault. If the bumper damage is minor and you were responsible, you can pay for repairs out of pocket without filing a claim.

Why You Shouldn't Always File a Claim for Bumper Damage

Filing a bumper damage claim with your insurance company might not always be the best idea.

• Filing a claim will cause a premium increase of 12% to 45%, on average, depending on the type of claim, dollar amount, and insurance company.
• It might not be worth filing a claim if the cost of repairs is only slightly more than your deductible.
• You might not be able to file a claim at all if the cost of repairs is less than your deductible.

Types of Insurance That Cover Bumper Damage

You can use collision insurance to pay for bumper damage if it's the result of an accident you caused, or comprehensive coverage if the damage was caused by something out of your control.

If another driver was at fault in a crash that resulted in bumper damage, it's best to file a claim with their property damage liability coverage, which won't require you to pay a deductible.

You should file a claim with the other driver's auto insurance company if you are not at fault for the accident and you have standard liability insurance but no collision coverage. Liability insurance pays for injuries and damage that a driver might cause to other people and property if at fault for a car accident. That means your liability insurance won't be involved if you are not at fault. The other driver's liability policy would cover the damage.

But there are drawbacks to filing a claim with someone else's insurance company. The other driver's insurer will investigate your claim and confirm that its policyholder is at fault. And it's typical for them to deny fault, especially if no police report was filed. If your claim is denied and you don't have collision coverage, you'll have to take the other driver's insurance company to court, which could drag on for a while. Insurers know that the longer it takes and the more difficult it is to resolve a claim, the more likely it is that you will settle or drop it.

Things are a bit different if you have collision insurance, however. In that case, you can file a claim with either your auto insurance company or the other driver's insurer. Filing with your insurer starts a process called subrogation. Your insurance company pays for your property damage and pursues compensation from the other driver's insurance company after the fact. You may have to pay your collision deductible, but you could get that money back when your insurer settles with the other driver's insurance company.

Collision insurance doesn't cover your injuries, but if your insurance company is able to establish the other driver's fault through subrogation, it might help get your medical bills paid by the other carrier. If the other driver was responsible for your property damage in an accident, they're equally responsible for your injuries. Your insurance company will only pay for your injuries if you have medical payments coverage or personal injury protection.

If it turns out that the other driver doesn't have insurance, you can make a claim through your uninsured motorist protection, if you have it. There is no deductible for uninsured motorist claims.

You can file a car insurance claim online or through an app with some insurance companies, and most major auto insurance providers have a 24/7 phone line for filing claims. Be sure to contact your agent or insurer as soon as possible after an accident, even though you don't have to file a claim immediately.

How to File a Car Insurance Claim

1. Immediately contact your insurance company

Even if there is only minor damage, it is important to inform your agent or insurer that you have been in an accident and may soon be filing a claim. Otherwise, filing a claim could be more difficult later on.

2. Fill out the “proof-of-claim” form

Your agent or insurer will provide you with a proof-of-claim form (also called a proof-of-loss form), usually through an online portal. You will need the following information to complete the form: your policy number, which covered vehicle was in an accident, who the driver was, where and when the accident occurred, the severity of the accident, and the contact information of all drivers involved.

3. Get in touch with your insurance adjuster

An insurance adjuster is assigned to your claim by the insurance company, and they will ask you for additional information about the accident. The adjuster will also either inspect your car themselves or ask you to take the car to a certified repair shop to be inspected there. 

4. Wait for your adjuster's response

Your adjuster will evaluate your claim and may make an initial payment.

5. Accept Payment

Your adjuster will authorize a final payment, which will be made to you directly or to the repair shop where your car is being fixed. You will then sign a release accepting the payment as proper compensation for the claim.

To better understand which insurance company you should file your claim with or the types of claims you should file in different situations, check out WalletHub's guide to car insurance claims.