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.

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.

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.

An insurance claims history report is a list of all the car insurance claims an individual has filed over the past 5-7 years. Most car insurance companies will check a driver's insurance claims history report before issuing a policy in order to assess their risk.

LexisNexis generates the most common claims history report from its “C.L.U.E.” database, which stands for Comprehensive Loss Underwriting Exchange. Since drivers might forget or misrepresent their claims, C.L.U.E. is a centralized source of information that insurance companies can rely on.

• Previous claims that insurers have paid
• Previous claims that insurers have denied
• The policy number and insurance company associated with each claim
• Information about specific vehicles
• Serious inquiries you have made to agents or adjusters
• Your name
• Your address
• Your date of birth
• Your SSN

Claims history reports may also include information about homeowner's insurance claims. You can request a free copy of your insurance claims history report once a year. For more information about getting a copy or disputing an error, check out WalletHub's complete guide to C.L.U.E. reports.

Yes, you can cash an auto insurance claim check and do what you want with the money as long as you own the car outright and fulfill all legal requirements. If your car is leased or financed, the check will likely be made out to you and the lienholder, so you will need their signature before you can cash it. In this case, you will typically be required to use the money from the check to repair the car.

How To Cash an Auto Insurance Claim Check

1. Get your lienholder's signature if the car is leased or financed.
2. Deposit the check with your bank.
3. Check your insurance policy, loan, or lease contract to make sure that you are not required to use the money to pay for repairs.

Insurance Claim Check Cashing Tips

Unless the insurance company sends the claim check straight to the mechanic, you will usually have to cash it before you can use it for anything. If you own the car entirely and the check is made out to you, you can cash the check without anyone else's authorization. In this case, you are generally free to keep the money.

Just bear in mind that certain types of repairs are legally required. For instance, federal law says that cars must have bumpers. You should be aware of safety concerns as well, since keeping the insurance money is not worth compromising a car's structural integrity, brakes, or other important systems.

Car Insurance Claim Checks for Leased or Financed Cars

Claim checks for leased or financed cars can be difficult to cash since they are often made out to multiple parties. Plus, in most cases, failing to use the money to repair the car is a violation of your contract.

Your lender might even require pictures of the repairs and/or a copy of the repair bill as proof. And if the car is repossessed or returned to the lessor, you will likely be held financially responsible for any damage that was not fixed, anyway.

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.

To file a complaint with State Farm, call customer service at 1-800-782-8332, post about the company on social media, email the company, or mail a written complaint. Customers can also file a complaint about State Farm with the Better Business Bureau or their state's insurance regulator.  

How to File a Complaint With State Farm

1. Call State Farm. Customers can call State Farm at 1-800-782-8332 to speak with a customer service representative and report the details of their complaint.
2. Write State Farm a letter. Customers can mail a written complaint to State Farm at State Farm Insurance / One State Farm Plaza / Bloomington, IL 61710. They must indicate the specific department the complaint is about in the address, such as car or home insurance.
3. Tweet. If you can't get the company's attention elsewhere, you can tweet @StateFarm, the company's official customer service Twitter.

What You Need to File a Complaint With State Farm

• Your name, address, and phone number
• The name of any specific agent/broker
• Your policy number
• Any relevant claim number
• The details of your complaint/concern

Other Ways to File a Complaint Against State Farm

Customers can file a complaint against State Farm with the Better Business Bureau (BBB) using the Bureau's online claim submission process. The Better Business Bureau forwards complaints within two days, and customers will be notified of any response from State Farm or if they fail to respond.

Lastly, you can write a review of State Farm on WalletHub. So, if you're disappointed with any element of State Farm's service, you can rest easy knowing that you have several options for filing a complaint.

Car insurance covers auto theft and vandalism for drivers with comprehensive coverage. Comprehensive coverage is optional and can help replace your car if it's stolen, replace certain parts of your car that are stolen, or repair damage to your car resulting from theft or vandalism.

What Insurance Covers If Your Car Is Stolen

The coverage limit for claims related to theft is typically your car's depreciated value, or actual cash value (ACV). Your coverage limit is the maximum amount your insurer will pay for a claim. So, if someone steals your car, the insurance company will pay the actual cash value of the vehicle, minus your deductible. The ACV is the car's market value based on pre-loss condition, age, options, mileage, etc.

If you are financing your vehicle, the amount insurance pays may not be enough to pay off your loan or lease. If you owe more than your car is worth, you should consider gap insurance, which helps cover the difference between your car's actual value and the balance owed.

You should also keep in mind that comprehensive coverage won't pay for a rental vehicle as part of your stolen car claim. You'd need rental reimbursement coverage on your policy to help pay for transportation costs related to your car being stolen.

What To Do When Your Car Is Stolen

1. File a police report as soon as possible—ideally within 24 hours. Not only will this improve your chances of recovering the car, but you'll also need a police report to file a claim with your insurance provider.
2. File an insurance claim with your comprehensive insurance provider. Keep in mind that you will need to provide as much information as possible if you want your claim to be solved quickly and fairly.

How Car Insurance Covers Theft

Comprehensive coverage won't cover theft of your personal belongings, like your phone, laptop, or other valuables. Those items should be listed on your homeowner's or renter's insurance policy, even if you often leave them in your car.

Normal liability car insurance won't cover theft because it protects the other driver from bodily injury and property damage resulting from an accident you cause.

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. 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.

2. Document the accident at the scene.

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.

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. 

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.