Auto 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.

Filing a claim with your insurance company may cause your premium to increase in the future. One claim will cause a premium increase of 12% to 45%, on average, depending on the type of claim, dollar amount and insurance company.

So if you hit a curb and caused minor bumper damage, it might not be worth filing a claim if the cost of repairs is only slightly more than your deductible. Additionally, you won't 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.

Progressive does not have a set time limit for filing claims and is unlikely to deny a claim based on late notice. Progressive usually resolves claims in 7 to 14 days and will only deny a claim for late notice if it's possible to prove the delay was unreasonable or compromised Progressive's ability to investigate the claim.

Most insurance policies say that an accident should be reported “promptly.” Reporting accidents as soon as possible helps ensure that all important details are recorded. However, after you report your accident, you do not immediately have to file a claim. Different states have different laws that govern how long residents have to file auto insurance claims, usually giving drivers between 1 and 3 years.

Progressive allows you to file a claim using the company's mobile app, online, or by phone. Representatives are available to walk you through the process, if necessary.

You should not file an auto insurance claim if only your own vehicle is damaged, there are no injuries, and the property damage is minimal. A claim might make it cheaper to pay for a single incident, but it will likely raise your future premiums, which could end up costing you more money in the long run.

When Not to File an Insurance Claim

1. After a minor single-car accident, when there's little damage.
2. After an accident with another driver resulting in no injuries and minimal property damage.
3. If the cost to repair your car is less than your deductible.
4. If the rise in your premium as a result of filing a claim will be more than your out-of-pocket costs.

A single at-fault claim raises premiums by about 40% on average. That means the average driver's annual premium of about $1,500 would increase by approximately $600 after an accident, and it wouldn't go down for three to five years. By comparison, the average collision claim is about $3,600.

Consequences of Not Reporting an Accident or Filing a Claim

Although it's often the right decision to report accidents and/or file a claim, there's no law that requires you to tell your insurance company. But insurers do require policyholders to immediately report accidents, and failing to do so can result in denied claims.

As a result, you should notify your insurer any time an accident involves another driver or results in any injuries. You should also contact your insurance company any time fault is unclear or if there is serious damage to a vehicle.

If you don't plan to file a claim, remember that insurers keep close tabs on their interactions with customers through the CLUE database. Insurance companies often treat specific questions about coverage as claims with $0 payouts. Although it's unlikely such a claim would affect your premium right away, regular inquiries could flag you as a frequent claimer.

It's best to use insurance for its intended purpose—to protect against financially crippling situations. If you can pay out of pocket for a single-vehicle accident, it's usually in your best interest to do so.

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.

You should file an insurance claim when you can't afford to pay cash for damages or medical bills that your insurance policy will cover. You should pay out of pocket instead of filing an insurance claim if the repairs or medical bills incurred in an accident that you cause will cost less than your deductible.

For example, it might be worth it to pay for a minor fender bender yourself, especially if the accident was your fault or you've filed a claim recently. Your claims history is important because the more claims you make, the more of a risk you are in the eyes of insurance providers. You could see higher premiums, or even have your canceled outright, as a result.

When to Consider Paying Out of Pocket

• You have comprehensive or collision insurance and there is only minor damage to your vehicle.
• Repairs cost less than your insurance policy deductible.
• You have recent claims or tickets on your driving record.

When You Should File an Insurance Claim

• There is major property damage that will cost more than your deductible to repair.
• There are injuries.
• The accident involves other vehicles.
• You have accident forgiveness on your insurance policy.

Keep in mind that if you're in a car accident, you should notify your insurance provider of the incident whether you plan on filing a claim or paying out of pocket yourself. All major insurers require customers to report all accidents, no matter the size.

Also, if you're in an accident that's not your fault, you should file a claim with the at-fault driver's insurance provider so that it pays its portion of any medical bills or property damage you incurred in the accident. How much the at-fault driver's insurance provider will pay out depends on the driver's policy limits and their state.

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.

To file an auto insurance claim against someone else, the driver needs to gather the other driver's information, take pictures of the scene, report the accident to the police, contact their insurance, and then wait for other driver's insurance to pay.

How To File An Auto Insurance Claim Against Someone Else

1. Collect important information from the other driver at the scene

Be sure to get their name, address, insurance policy details, and driver's license and plate numbers.

2. Take pictures at the scene

Document the damage to each vehicle and the entire accident with both cars as they sit immediately after, if possible.

3. Call the police and gather contact information and statements from witnesses

Depending on state laws, you may be required to file a police report. The police will determine who is at-fault and issue citations as needed.

4. Contact your insurance company as soon as reasonably possible

Notifying your insurer about a possible claim is required under the terms of your policy. They will follow up and represent you with the other driver's insurance company after you provide the information you collected at the scene. The insurance companies will determine fault, taking into account police reports, statements, and physical evidence.

5. Wait for the other driver's insurance company to determine fault

If the other driver's insurance company determines their policyholder is at-fault, the insurer will settle your claim. If they deny your claim, you can file with your own insurer as long as you have collision coverage.

You do not have to contact the other driver's insurance company to resolve your claim. It is the other driver's responsibility to notify their own insurer about a possible claim, and your insurance company will contact them on your behalf anyway. Most insurers try to resolve claims within 30 days, but it could take less or more time than that.

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.

UIM claims are claims that policyholders file with their own car insurance company if the at-fault driver in an accident does not have enough coverage to pay for the damage. Underinsured motorist (UIM) claims are different from uninsured motorist (UM) claims, which occur when the at-fault driver has no car insurance.

How to File a UIM Claim:

1. Notify your insurer of the car accident.
2. File a claim through the at-fault driver's liability policy.
3. File a claim for the remaining amount through your own UIM policy.

The UIM claims process can take a while, since it involves two different insurance policies. So it's important to file a claim with the at-fault driver and tell your insurer about the accident as soon as possible to expedite the process.