Accidents happen. If you drive long enough, you’re statistically likely to experience some kind of car accident. Hopefully, it will be minor. Regardless, knowing how to navigate the auto insurance claim process can potentially save you significant money and stress.
If you’re involved in an accident, especially a moderate to severe one, your immediate priority should be contacting the police. They’ll promptly arrive to help document the scene, determine fault, and arrange for towing if necessary.
Your second step is to contact your insurance company. They’ll need information from the other driver involved. Obtain their insurance details if possible, but avoid confrontation if they are uncooperative or agitated. The police will secure the necessary information, and your insurer can obtain it from the police report if needed. This prevents escalating an already tense situation.
An auto insurance claim is essentially a mechanism to cover damages resulting from an accident. If you caused the accident, your insurance company will investigate and compensate for the damages. Be aware that this will likely increase your insurance premium, or, in cases with multiple recent accidents, could result in policy cancellation.
If the accident was the fault of another driver, your insurance company will manage the claim process with their insurance provider. Depending on the extent of the damage to your vehicle, you’ll either receive a check for its current market value (if it’s a total loss) or be directed to repair shops for vehicle restoration.
The process of filing an auto insurance claim can be stressful and confusing. However, it provides valuable insight into your insurance company’s performance. It reveals whether their promises hold true when you actually need assistance. Are they responsive? Do they process claims efficiently? Do they facilitate vehicle repairs or settlements promptly? Does filing a claim affect your rates, or even lead to policy termination?
While it’s an experience nobody wants, filing an auto insurance claim is the most direct way to assess whether you have the right insurance company. Let’s hope you don’t have to learn this lesson firsthand for many years to come!