Property Damage Claims

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.

Car insurance claims work as a way for you to request financial compensation from your insurance company after a covered incident. Car insurance claims can be filed for things like serious accidents as well as minor scratches and dents, though which insurance company you file a claim with depends on the details of the situation. Generally speaking, the at-fault driver's insurance company pays for accident-related claims.

How the Car Insurance Claims Process Works

1. The policyholder files a claim online, by phone or through their insurance company's app.

   Most insurance policies do not give an exact timeframe for when you must file the claim, but some states, like New York, require that claims be filed within 30 days of the accident. Just remember that the longer you take to file, the longer you'll be waiting for compensation if your claim is approved and your insurer takes their full allotted timeframe.

2. The insurance company must acknowledge the claim within 10 to 15 days, on average.

   Most states specify exactly how long an insurer has to acknowledge the claim and begin the investigation process. For example, insurance companies must respond to the claim within 14 days in Florida, or within 10 days in Pennsylvania.

3. The insurance company will investigate the claim.

   Insurance adjusters will look over the details of the incident to determine fault, the extent of damage, and if there is any reason to suspect fraud. The more serious the incident, the longer this investigation may take.

4. The insurance company must decide if the claim is accepted or denied after around 15 to 30 days.

   After the claim is investigated, the insurance company decides if the incident will be covered or not. In some states, insurance companies have 15 days from acknowledging the claim to deciding if it is approved. Other states, like California, give insurers more time (30+ days) to investigate and come to a decision on a claim.

5. Payments should be made promptly for approved claims.

   Once a claim is approved, the insurance company has between 5 and 30 days to compensate the policyholder in most states. However, some states do not disclose a specific timeframe for payments and instead suggest that insurers make payments promptly or in a reasonable amount of time.

The insurance company may not pay the policyholder directly, though. For example, they may pay the mechanic directly for repair costs or a lender or lessor for financed vehicles.

Final Thoughts

Keep in mind that there are some situations where filing a claim doesn't make sense. If the damage would cost less to repair than your deductible, for example, you should reconsider filing a claim. This is especially true considering that an insurance claim could raise premiums by as much as 32% depending on the insurer and circumstances.

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

If your stolen car insurance claim is denied, you can appeal the decision after reviewing the reason for the claim denial. If you believe your claim was wrongfully denied, the best thing you can do is find a lawyer who specializes in bad-faith insurance claims to help with the appeal.

What to Do When a Stolen-Car Insurance Claim is Denied: 5 Steps 

1. Request more information from your insurance company.

Your insurer will likely send a letter that outlines their reason for denying the claim, but if your claim was denied and you haven't received any information about why, reach out to them to get the documentation. Without the documentation explaining their decision, you cannot begin to determine if the claim was wrongfully denied or not.

2. Provide additional details, if needed.

If you have more information about the theft, such as police reports, you should submit it to your insurer. That alone could sway their decision.

3. Find a lawyer.

The easiest way to handle an insurance claim appeal is by having a lawyer who is experienced and knowledgeable. When an insurance company denies a claim for what seems like no reason, this is referred to as a bad-faith action. In other words, they are denying your claim without respect to the faith that you, as an insured driver, have put in them through your contract and premiums.

4. Appeal the decision.

An experienced lawyer will help you determine if your claim was wrongfully denied and can help you handle the appeals process.

5. Pursue legal action, if necessary.

Ultimately, if your insurance company continues to deny your claim, further legal action could be needed. This may include suing your insurer, for example.

Reasons for Stolen-Car Insurance Claims to be Denied

Although some insurance companies may deny stolen-car claims wrongfully, there are some common reasons why an insurer would deny a claim.

• The insurance company determined that it was a fraudulent claim.
• The amount you request in your claim is more than your car's actual cash value.
• You are behind on a payment or forgot to renew your policy.

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

Uninsured motorist property damage insurance covers the cost to repair or replace the policyholder's vehicle or other property if it is damaged in an accident caused by an uninsured or underinsured driver. Six states and Washington, D.C., require uninsured motorist property damage insurance, and it's optional in others.

Uninsured motorist property damage (UMPD) coverage is meant to replace the property damage liability insurance that an uninsured driver should have purchased. As a result, drivers generally buy uninsured motorist property damage insurance up to the same limits as their property damage liability policy.

UMPD can only be used when the policyholder is not at-fault. In some states, the at-fault driver must be identified in order for UMPD to apply. In others, uninsured motorist property damage coverage will pay for expenses resulting from a hit and run.

UMPD will usually also cover an accident caused by an underinsured driver. In this case, the policyholder would file a claim with their UMPD policy for expenses that exceeded the at-fault driver's property damage liability limits.

Drivers who do not have uninsured motorist property damage coverage can file a collision claim if their car is damaged by an uninsured driver. Collision insurance pays to repair or replace the policyholder's vehicle after an accident, regardless of fault. However, collision is usually more expensive to buy than UMPD, and it often has a higher deductible.

For more information, check out WalletHub's guide to uninsured motorist coverage.

To fight a denied car insurance claim, you should submit a letter appealing the insurance company's decision and seek help from an experienced lawyer. Your appeal letter should include your claim number, your policy number, and information that counters the insurance company's reasons for denying your claim. Appeal letters can be sent through regular mail.

How to Fight a Denied Car Insurance Claim

1. Request a letter of explanation. Typically, your insurer will send a letter explaining why your claim is denied. However, if you do not receive one, you can request a written explanation from the insurance adjuster or your insurance company directly.
2. Gather counter evidence. This will vary depending on the nature of your claim. For example, when trying to fight a denied bodily injury claim, you may want to collect things like letters from your doctor, receipts for medical treatment, and photographic proof.
3. Submit your appeal. Some states have formal appeals processes that you and your insurer will need to abide by, but in general you simply need to submit your evidence and a letter explaining why you believe your claim was wrongfully denied.
4. Seek legal support. If your insurance company isn't responsive to your argument, or you suspect your insurer may be acting in bad faith, the best course of action is to seek legal advice. An experienced lawyer can help you review the claim and pursue litigation if needed.

If your appeal isn't successful, you may be able to sue the other party directly for your costs, but remember that lawsuits are time-consuming and can be expensive. Speaking with an experienced claims lawyer can help you figure out if suing the other driver is worth it.

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

Property damage in an auto accident is considered to be damage done by or to a vehicle, including to stationary objects or structures, like fences and mailboxes. Property damage in an accident is typically covered by the at-fault driver's property damage liability insurance.

Liability insurance, which is required in almost every state, does not pay for the at-fault driver's own expenses, however. If you cause the accident, you can only have your vehicle repairs covered if you have collision insurance. To underscore the importance of these types of car insurance coverage, the average property damage claim was $3,841 for liability insurance in 2018 and $3,574 for collision coverage.

For more information, check out WalletHub's guide to property damage liability insurance.

Property damage liability insurance covers damage that you cause to another person's property when you are at fault in a car accident. For example, property damage liability insurance will help pay for damage to other people's cars, homes, offices, mailboxes, and more.

 What Property Damage Liability Insurance Covers

Your property damage liability insurance is only used when you are at fault. If another driver is at fault and your car or other property is damaged, their liability insurance will help pay for your expenses. However, if you are at fault, the only way to have insurance pay for your repairs is if you have collision coverage on your policy.

Property damage liability insurance is mandatory in most states, but the amount of coverage you are required to have varies from state to state. For example, California requires only $5,000 in coverage, whereas Texas requires $25,000 in coverage.

To learn more, check out WalletHub's guide to property damage liability insurance.