When to File a Car Insurance Claim (2024)

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• File claims for collisions with major property damage and bodily injuries.
• A claim might not be worth it for a one-car collision with no injuries.
• A bad driving record could increase your auto insurance premiums for at least three years.

Your driving record is a key component in determining how much you pay for auto insurance. A single accident can really cost you, especially if it involves property damage and injuries. According to an analysis by The Zebra, an insurance comparison website, premiums can increase by almost 50% after an at-fault accident claim.

Multiple accidents and severe traffic violations might even prompt an insurer to refuse your next renewal. According to the Insurance Information Institute, increased premiums from an accident usually stay on your record for three years after the claim. However, moving violations like DUIs and reckless driving can stay on your record longer. If you have to get an SR-22, you could be paying extra as long as the state requires it.

As you might gather, many drivers make arrangements to pay for damages on their own for smaller accidents, but it's not always possible. In general, it's better to report an accident to your insurance company than not to, especially if another party is involved. But there are some instances where not filing a claim makes more sense.

Understanding Car Insurance Claims

What is a Car Insurance Claim?

A car insurance claim requests compensation from your insurer after a covered event. Filing a claim reduces the financial burden of vehicle repairs, medical expenses, and legal fees.

Types of Car Insurance Claims

Common car insurance coverages you can file claims for include but aren't limited to:

• Collision
• Comprehensive
• Liability
• Personal injury protection
• Medical payments
• Uninsured/underinsured motorist
• Rental car reimbursem*nt
• Roadside assistance
• Gap insurance

Whether you can file a claim under a specific coverage depends on if it's included in your policy. With the exception of liability car insurance, not all coverages are mandatory in every state.

When to file a car insurance claim for damage

"Some of the main factors to take into account when deciding whether or not to file a claim include whether property damage or bodily injuries are involved, what type of coverage you have, and the relationship between the parties involved," explains Falen Cox, co-founder of CRM Law LLC. Here are some scenarios under which you should almost always file an auto insurance claim:

Accidents Involving Significant Damage

If you damage someone else's vehicle during a significant collision, and you're at fault, you should always file a claim."If anyone else involved in the accident sues you weeks or months later, not having reported the incident will make it harder for your insurer to gather evidence to represent you," according to the Insurance Information Institute's website.

If someone else is at fault and offers to pay out-of-pocket, proceed with caution. Even if your vehicle is operational after an accident, small leaks or damage to certain parts of your engine could cause problems down the road. A repair shop can fix cosmetic and internal issues like a dented bumper or fender. That said, it's easy to underestimate the cost of auto repairs. You don't want to get stuck trying to chase them down for reimbursem*nt later.

You should also file a claim if your car is badly damaged in a single-vehicle incident. Collision insurance will pay for your repairs for most single-car crashes, minus the deductible. If you don't have collision coverage, you'll have to pay for repairs out of pocket. If you run into a deer or other animal, your comprehensive car insurance will kick in.

Accidents Involving Injuries

"You should almost always file a claim if bodily injury is involved," says Cox. Some injuries don't show up immediately, and underlying health conditions may increase the likelihood of this happening. Having an open claim and police report to verify the accident helps drivers and passengers protect themselves from the what-ifs.

Several states have time limits for filing injury claims, typically 30 days, according to Dan Ferrara, a licensed insurance agent.

Theft or Vandalism

If your car sustains damages due to a break-in or theft, it's important to notify your insurance company and law enforcement. The comprehensive coverage portion of your car insurance policy will cover losses due to theft and vandalism.

Situations When You Might Not Need to File a Claim

While filing a claim for damage caused to others is always encouraged, there are instances where you might consider not filing a claim. Here are some of them:

Minor Damage and High Deductibles

A claim might not be necessary if a minor accident only involves you and your car. For instance, say you back into your mailbox, which leaves a small dent on your vehicle's bumper. You could opt not to file a claim to avoid increased premiums. For many drivers, the question is how much would it cost to repair your vehicle compared to your deductible?

When Repair Costs are Lower than Deductible

If the repair cost is lower than your insurance policy's deductible, it's probably not worth filing a claim. For instance, say your deductible is $1,000, but the cost of damage is $800. In that case, filing a claim wouldn't make much sense as your out-of-pocket cost is higher than the amount your insurer will cover.

You may also want to forgo a claim if the cost of repairs slightly exceeds your deductible. If you can afford it, Ferrara recommends, footing the repair bill yourself to avoid paying premium increases at your next renewal.

Steps to Take Before Filing a Claim

Here is what to do before filing a car insurance claim:

Assess the Damage

Right after a car collision, after you make sure you're safe, you'll want to check for possible injuries to yourself, your passengers, and any other parties involved. If the accident results in serious injuries or damages, alert the police or highway patrol. If no one needs immediate medical attention, examine and take pictures of the damages to your vehicle, as well as the other vehicle or damaged objects (e.g., stop sign, mailbox, fence, etc.).

Gather Necessary Information

At the scene of the accident, obtain as much information as possible including:

• Names and contact information of all parties involved, including witnesses
• Licenses, car registrations, insurance ID cards, and car make and models of all parties involved
• Location, time of day, and weather conditions of the accident (pictures and videos help)
• A copy of the accident or police report

If you are unable to get other parties' information at the time of the accident, you can find their insurance information later, through the police or through your own insurance company.

Contact Your Insurance Company

Notify your insurance company of the incident to determine if your policy covers your situation. You may want to inquire about time limits for filing claims, submitting bills, and submitting additional information. You can also ask for an estimated approval timeline and when you can expect to hear back from a representative.

How to File a Car Insurance Claim

Step to File a Car insurance Claim

Take a look at the process of filing a car insurance claim.

1. Start the claims process via phone, mobile app, or online form and provide the necessary documentation and information
2. Review your policy's coverage and deductibles to determine what you're covered for and how much you'll have to pay out-of-pocket
3. Speak to an insurance adjuster and set up an appointment to have your car inspected
4. Arrange to have your vehicle repaired at an approved or preferred auto shop.
5. Receive your claim settlement

Required Documentation

Required documentation includes photos and videos, and a copy of the police report, which you should receive at the scene of the accident. Your insurer may also ask you to supply receipts related to the incident (i.e., medical bills, auto repair, towing, etc.), so be sure to retain those.

Following Up on Your Claim

It could take days to months to resolve the claim, depending on various factors including state laws, the accident's severity, if a lawsuit is involved, and how quickly you filed the claim. Generally, insurers have 30 days to investigate claims, but this isn't guaranteed, and it could take longer. Be sure to ask for an estimated timeline and follow up if any delays occur.

Tips for Car Insurance Claims

Keeping Accurate Records

It's easy to forget small details of an accident, especially when the claim process takes months. That's why it's important to keep accurate records and stay organized. Keep pictures, videos, digital or paper correspondence from all parties involved, and receipts for the incident.

Communicating Effectively with Your Insurer

The claims process can be frustrating, especially after a major accident. To ensure the process goes as smoothly, respond to your insurer's request promptly and supply them with the required documentation and information. If you have any questions or concerns about your claim, don't hesitate to contact your claims representative.

Understanding Your Policy

After a car crash, review your policy or speak to your insurance company to identify the coverages you can file a claim for. Even if you weren't at fault in an accident, you may be able to file a claim under your own collision coverage. This allows you to receive compensation for repairs quicker instead of waiting on the other party's insurance company to determine liability and payout.

Your policy may also include other coverages, such as roadside assistance and rental car reimbursem*nt, which lower your overall out-of-pocket expenses. Be sure to also pay attention to your deductible, as it reduces your claim settlement amount.

When to File Car Insurance Claim FAQ