When dealing with the aftermath of an automobile accident, theft, or damage to the vehicle, the aftermath is highly stressful. For these reasons there are unexpected expenses, yes. Furthermore, the consequence of an automobile accident makes the driver's adrenaline levels peak as the driver's schedule is disrupted/ broken due to the emergency. It is necessary to learn how the car insurance claims process works.

Filing an insurance claim is a request that the driver makes to his/her insurance company in order to get the insurance company to pay for damage or loss that is covered in the driver's insurance policy. This engages a person in the claim process for the insurance to do its job. It is essential to learn how a claim process works as it engages the driver in a systematic rulr. Otherwise, there is money that will come straight out of the driver's pocket to pay for the expenses.

This instructional guide is set to simplify the understanding of the claims process. Whether you have just gotten into a fender bender or have discovered your vehicle has become damaged due to a storm, we will guide you through all the steps of filing a claim. From the immediate steps that you have to take upon arriving at the scene of the incident, to the cashing of the final settlement check, the guide will assist you to self-advocate and ensure the financial recovery process will be as seamless as possible.

1. Knowing the Types of Car Insurance Claims

Before we enter the “how to” portion of the guide, we need to clarify that the claim types are not monolithic. The type of incident will determine what part of your car insurance policy will become applicable, and thus the steps therein. The majority of claims are categorized in three primary types:

Accident Claims (Collision and Liability)

This is the most popular claim type. It occurs when your automobile has an impact with a different automobile or an object.

Collision Claims: Collisions coverage pays for repairs to your vehicle for any car accident, regardless of fault. If another driver is at fault, your insurance company can recover their costs through subrogation. Your insurance may be able to recover their costs through subrogation, depending on your coverage policy.

Theft and Vandalism Claims (Comprehensive) 

You may experience a sense of loss and violation if your car is vandalized or stolen. Tagging and adding unauthorized inscriptions (graffiti) on an automobile, or other types of vandalism is considered to be part of comprehensive coverage.

Theft: If your car is stolen, you can file a claim with your insurance company, but you first must obtain a police report and wait for a recovery period to see if the vehicle is recovered. Your insurance company will pay for the cash value of the car if it is not recovered.

Vandalism: Damages considered vandalism include broken windows, slashed tires, and graffiti. These types of claims are relatively simple, but they do require proof that the damage was done intentionally, rather than through regular wear and tear of the vehicle.

Natural Disaster and Weather Claims (Comprehensive) 

Vehicles can suffer a lot of damage due to the extremes of Mother Nature, especially with hail, floods, and falling tree branches during a windy storm. Compreshensive car insurance policy hitting a deer which is an unusual scenario to include with other at fault accident claims. With these types of claims, it is often considered a not at fault incident and therefore can have a minor impact on your premiums, if any.

2. Phase One: Immediate Actions at the Scene

The claim process for your insurance can greatly rely on what transpires in the moments and hours following the incident. With safety always being the priority, once everyone is safe, all attention must move to documentation.

Safety First and Call in the Authorities

When an accident happens, stop your vehicle. Inspect for injuries. If anyone is injured, call for ambulance services. Even if you don't suspect there are injuries, the police should be called. A police report is an invaluable piece of unbiased evidence that can serve as the official record of the incident. Without a police report, the insurance claims process can turn into a game of he-said/she-said.

Information Exchange
If there is another driver participating in the incident, you must get these details: 
First and last name. 
Contact information: phone number, address, email. 
Driver's license number. 
Insurance company name, policy number. 
Vehicle: make, model, color, license plate number.

Pro Tip: A great way to obtain some of this information is to take a picture of their insurance card and driver’s license. This can help correct errors that copying the information can introduce.

Document Everything
This is the number one rule of all insurance claims: If there is no evidence, it did not happen.

Photographically Document the Incident: Capture the damage sustained by all vehicles, including your own. Additionally, take pictures of the skid marks, nearby traffic signs, weather conditions, and the final positions of the vehicles in the accident, and be sure to get the scene from multiple angles.

Witnesses: If there are other people around the scene of the accident who may have seen what took place, be sure to get their contact information. Witnesses can provide helpful information if the defendant denies the claim.

Notes: Write or use a voice memo to record what happened while the details are still fresh in your mind. Be sure to remember the times of day, conditions of the roadway, and how visible or clear the weather was to your surroundings.

Avoid Acknowledging Fault: It is in your nature to apologize and give a sentiment such as, 'Sorry, I didn't see you.' Avoid this sentiment as it can be turned into an admission of fault. Stick to the facts when talking to the other party and the police, and leave it to the insurance company and police to determine the fault by evidence.

Second Phase: Starting the Claim - With your evidence in place and a safe distance from the accident, you may now begin the administrative process.

Notify Your Insurer as Soon as Possible  

Insurance policies require timely notifications according to the terms in the policy's fine print. Waiting too long to report an accident can result in your insurance company canceling your coverage. You may contact your insurance company in any of the following ways:  

Mobile App: You can quickly file a claim through an insurance company mobile application by submitting photos from the accident scene.  

Phone: You may contact your insurance company through their claims hotline to speak with a representative who can assist you with the claims process.  

Online Portal: You may also submit your claim using the online claims portal of the insurance company's website.  

Before submitting your claim, make certain you know your policy number as you will need it for your claims submission. When speaking with the coverage representative, maintain accuracy and honesty. Provide the facts you collected from the accident scene, and refrain from speculation on potential injuries and vehicle damage.  

Receive and Record Your Claim Number and Insurer's Contact Information  

When you have completed filing a claim with the insurance company, make sure to note it, as it will be your claim number for that case moving forward. You may also have an insurance claims representative assigned to you. This person will be your case manager when handling your claim submission. This person will be the one who will decide how much your insurance company will pay you on your claim. It is important for you to document their complete contact information, including their phone and email address.

Assessment of Your Coverage

This stage of the process involves looking over the policy declarations page of your plan, which outlines your:

Deductible: The deductible is the fixed amount that you must pay, out of pocket, before the insurance coverage will take effect. If the repair costs total $800 and your deductible is $1,000, it is probably not worth it to pursue this claim. 

Coverage Limits: Your damages must not exceed the policy limits, and it is your responsibility to make sure of that.

Rental Reimbursement: Your policy might cover the cost of a rental vehicle while your own is in the repair shop, so it is worth checking.

4. Phase Three: The Investigation and Evaluation

Once you have submitted a claim, the adjuster is assigned to your case. The adjuster’s role is to verify the facts and determine the costs.

The Adjuster’s Investigation

The adjuster will examine the police report, interview the drivers and witnesses, and review the photographs collected. You may be asked by the adjuster to provide a recorded statement.

Caution on Recorded Statements: If you are the claimant and it is the other driver’s insurance company, you are not required by law to provide a recorded statement, and it may be prudent to decline this request pending legal counsel. If it is your own company, you will likely have to provide such a statement, so be sure to give a statement that is accurate and contains only the facts.

An Insurance Assessment of Vehicle Damages  

An approximate cost of repair is required by the insurance company. They will:  

● Dispatch an appraiser to inspect the damage to your car.  

● Instruct you to utilize a mobile application to upload photographs of the car damage.  

● Direct you to take your vehicle to one of their "preferred" body shops within their network.  

Choosing Your Body Shop: Although insurance companies tend to recommend specific repair shops, you are usually within your rights to select your own body shop. If there's one you trust, you can obtain an estimate to use as a comparison to the estimates given by the insurance company.  

Medical Assessment (If Relevant)  

In the event of an injury, documentation pertaining to your medical treatment must be supplied. This documentation should include paperwork from the hospital, physician notes, as well as proof of payment for any medications. Settling a medical claim should not be done in haste. Certain injuries may take quite a while to become fully apparent, such as whiplash. If you settle a medical claim, it is done, and you will be unable to request additional funds at a later time should complications arise.  

5. Phase Four: Settlement and Conclusion  

The insurance company will make a settlement offer after the investigation is concluded.  

Assessing the Offer  

The insurance company will give you a figure to cover the cost of repairs, or, in the case of a total loss, the market value of the vehicle.

Repairs: If a repairable vehicle is eligible for repair, payment will likely be sent either to you or to the auto body shop directly.

Total Loss: If the cost of repairs exceeds the value of the vehicle, the vehicle is considered to be a “total loss.” Insurers are required to compensate you with the car’s actual cash value (ACV) immediately prior to the accident loss.

Negotiation

You are under no obligation to accept the initial settlement offer. If you feel that the estimated repairs are significantly undervalued, or if the valuation of the vehicle that you will be taking a total loss on is outdated or fails to consider recent value-adding enhancements and the car’s lower than average mileage, feel free to negotiate. In support of your offer, come prepared with documents such as sales listings of comparable vehicles available for purchase in your geographic region, or repair invoices.

Closing the Claim

After a settlement amount is reached, Insurers service the payment. You may need to sign a release, which is a legal conclusion of the claim, as well as a waiver of any further claim for that loss.

.   Common Mistakes to Avoid During the Claims Process

Commonly, the most well-intentioned drivers are the ones who make errors that most significantly impact the timeliness of their claim and the amount that they are ultimately paid for that claim.

Failure to Understand "Betterment"  

If your car is repaired using new parts that increase its value, then your insurer may charge you for "betterment" (e.g., if you install a new transmission in an older vehicle). This represents the difference in value you have to pay. Knowing this clause exists can help you avoid unexpected pitfalls.  

7. Tips for Avoiding Difficulties or Problems in Completing the Claim  

You can take the following steps to increase the chances that these activities will occur without incident.  

Maintain, Keep, or Hold, Comprehensive Documentation  

You should create either a physical or a digital folder for your claim. Log every single phone call you have with someone about the claim, including the date, time, person you spoke to, and a summary of the conversation. Retain every email, and every receipt. This documentation will give you the greatest chance of winning in the event that there is a dispute.  

Be Straightforward, and Be Brief  

Fabricating false claims, or omissions is a crime. Never exaggerate the extent of the damages, and never make up injuries. On the contrary, there is also no reason to volunteer information that is not relevant. Find the information that is directly relevant to the topic, or question, and communicate that in a clear manner.  

Know Your Policy Before an Incident Occurs  

There is a two-week timeframe where your vehicle will be unavailable to you, and you do not want to find out then that you do not have rental car coverage. Policies should be reviewed every year, and if there is a provision or clause that is not clear to you, you should ask your agent for clarification. It is to your advantage to have the knowledge.

When to Reach out to Attorneys  

Schedule a consultation with a personal injury lawyer when an accident involves serious bodily injuries, liability is hotly contested, or the insurance company is unreasonably stalling or denying coverage. They can better address the concerns of the advanced legal issues involved.  

Final Thoughts  

When involved in an accident, the first thing to consider is the detailed process of car insurance claim. Consider the infamous insurance claim process as an outline of a new project. The project can be broken down into sections, with each section composed of a various number of steps. The insurance claim process becomes an invaluable project once an accident is involved. Continue to understand the different types of insurance claims, use the correct sequence in steps of the process, and avoid potential pitfalls to recover your project in a timely manner.  

You pay premiums, your insurance company is obligated to respond to you. They are your insurance company and your employee. Keep on hand organized project and literature. Keep the insurance claims literature organized in a manner that systematizes your process of obtaining the claim. The literature is organized and readily available so you are prepared to respond to the claim and obtain insurance claim literature as fast as possible. The process of obtaining your insurance claim is designed so you can move on with your life as quickly as possible, but with the claim in the folders.