How to File a Claim

If you’ve been involved in a serious accident, you’ve got a lot to deal with, including filing a claim with your auto insurer. Here are some tips to help you make the experience as stress-free as possible.

Know the details of your policy before an accident occurs. You might know in general what your auto policy covers, but you probably have no idea what’s in the all-important fine print. Ideally, you should sit down with your insurance agent before you have an accident to discuss what your policy does and does not cover. You can even do this while your shopping around for auto insurance rates to make sure you select a company that will be there for you in the event of a collision.

Get a rental. If your policy has rental reimbursement coverage, rent the best car your policy will allow. Most policies will reimburse you for rentals up to a certain maximum per day, typically $25-$30. Making sure you have a way to get around after the accident will make things a lot less stressful. If you have not yet bought your policy, try to find auto insurance rates that include generous rental reimbursement coverage.

Visit your state’s department of insurance. Your state department of insurance can provide you with a list of policyholders’ rights. States regulate insurers to help protect policyholders from being cheated when they file a claim. Most states’ departments of insurance have websites, so try looking online for this information.

Figure out what your car was worth before the collision. Insurance companies use a variety of sources in order to determine the actual cash value (ACV) of your vehicle. The company will look at online pricing sites, private party sales, dealer surveys, and value books to calculate the ACV. However, you shouldn’t take your insurer’s word on the worth of your vehicle. Do your own research and ask your insurer to adjust their estimate if they are low-balling you. If you can present a sound argument, they will probably be willing to adjust their figure.

Get a fair assessment of the damage. Your auto insurance company will send a representative out to do a visual appraisal of the damage. When this takes place, make sure the appraiser sees all of the damage. If you do not agree with your insurance company’s assessment of the damage, you can sometimes opt for an independent appraisal. The independent appraisal and that of your insurer will be reconciled by an impartial moderator.

Getting the car back. If your car is a total loss, you might still want to keep it for sentimental reasons and repair it yourself. If you decide to do this, the check you get from your insurer to cover the loss will be reduced by the amount the insurer could’ve gotten by selling the car to a salvage yard. The check will also be reduced by the amount of your deductible.

Repairs or replacement. If you know your car will need replaced, start looking for a new vehicle as soon as possible because your rental coverage will eventually run out. If you’re getting the car repaired, don’t let your insurer tell you which body shop to use. They might recommend a place, but you are not obligated to use it.

Insurance is there to keep you safe. Be proactive and learn methods of preventing car theft and other potential insurance problems.

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