The Auto Insurance Claims Process

There are many drivers who do not report accidents to their auto insurer.  This is especially common in minor accident situations, such as fender-benders.  These drivers often fear their auto insurance premium will increase if they report an accident.  Other drivers simply wish to avoid the sometimes complicated and lengthy claims process.  If you are in an accident and do not report it, however, you risk not having your insurance provider honor your policy should the other driver involved decide to sue you.

Auto Insurance Premiums and Accidents

Many auto insurance companies will raise your premium slightly following the filing of a claim when the accident is determined to be your fault.  Typically, the premium is raised by a certain percentage every time a claim is filed against you.  Insurance companies refer to accidents for which you are at fault as chargeable claims.  When your premium is raised as the result of a chargeable claim, the rate increase usually remains in effect for approximately three years following the claim.

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Filing an Auto Insurance Claim

When you are informed about the claims process, it is relatively simple.  If you do experience an accident and need to file a claim, follow these simple steps for a smooth claims process:

1. Contact your insurance agent immediately.  It does not matter who caused the accident, but it is important to inform your agent at once.  There might be a time limit on filing a claim.  
2. Ask your agent for the appropriate forms needed to file the claim, as well as a list of required supporting documents.  In most situations, you will need a “Proof of Claim” form and a copy of the police report. 
3. Be sure to submit all forms and information requested by the insurance company.  It is a good idea to keep a list of the names and numbers of anyone involved.  Also, you should have copies of all accident related expenses.  

Follow these guidelines and the claims process should be fairly straightforward, but if it’s not, let your agent know.  If you are simply not happy with the way the claim was settled, you can present documentation demonstrating your position and possibly have the claim re-evaluated.  In some cases, you may need to contact an arbitrator or consult an attorney.  You can always call the National Insurance Consumer Helpline for assistance.

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Compare Auto Insurance Companies and their Insurance Claims Processes

If you're shopping around for auto insurance, you should also review the company's claims process. Each insurance company handles accident claims differently, and therefore is one of the most important aspects to consider. You want a company to handle your claim promptly and without issue. You want your company to cover repairs at a nearby repair facility. You also want to make sure that your insurer guarantees high quality replacement parts.

You can obtain information about a company's claims process by reviewing their website, and by reviewing your state's department of insurance website.

*Auto Insurance Options is a free information resource that provides content on auto insurance products and policies for informational purposes only, but is not an agency or insurer. Products and policies may not be available in all states.