Auto Insurance 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 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.

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.

Filing a claim will increase car insurance premiums 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.

How much filing a claim increases car insurance rates:

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.

It usually takes 30 days for insurance to pay out after a car accident. Most car insurance companies try to resolve accident claims as quickly as possible, which typically leads to a payout within a month of a claim being filed. However, it might take longer depending on several factors, including the state, the type of claim being filed, and the severity of damage or injuries.

Some states have specific laws dictating how long an insurance company has to make a ruling and pay out on a claim. For example, insurers in California have 40 days to accept or deny a claim and 30 days to issue payment once the settlement has been accepted. And in Texas, insurers must decide on a claim within 45 days and make the payment within five days of approval.

Not all states provide exact timeframes, though. In Massachusetts, for example, insurance companies must pay claims where fault is clear within a “prompt and reasonable” period of time.

Factors That Affect the Claim Timeline

• State timeframes for insurance claims (some states are stricter than others)
• Type of claim being filed (bodily injury takes longer than property damage)
• Extent of physical damage or injuries (severe accidents can take a long time to settle)
• Communication between drivers, insurance companies, and adjusters (slow communication delays the claim timeline)
• Understanding of policy and coverage (you might think your policy covers you in a situation when it really doesn't)
• Ability to pay insurance deductible (your insurance company won't pay out until you've paid your deductible)

In particular, the type of claim being filed and the extent of the physical damage or injuries involved can significantly impact the payout timeline. Bodily injury claims take the longest to settle because multiple parties are involved, including your doctor, the car insurance company, and your health insurance provider.

Injury settlements usually have to wait until the patient has reached the point of maximum medical improvement (MMI). This is when an individual has made a full recovery or has a full assessment of the extent of their injuries and the expected long-term medical costs. If it takes longer than 30 days for the patient to recover, then the settlement could be pushed back.

Conversely, a straightforward property damage claim where fault is clear can be settled in as little as two weeks.

If Your Insurance Company Is Not Cooperating

Even if your state doesn't have specific laws establishing a claims timeline, you still have the right to be paid quickly and efficiently by the insurance company. If your insurance company is acting in an unethical manner and delaying payment without a clear reason, you can file a “bad faith” lawsuit. In addition to your original settlement amount, you could be paid extra for interest and penalties.

Car insurance claim numbers should never change. If you have two separate claim numbers for the same event, you might have filed two different claims by accident. Otherwise, your first claim might not have been received by the insurance company. You should call your insurance agent to clarify.

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 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.

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.