How Do Car Insurance Claims Work?

There's an old saying sometimes used by insurance agents that goes something like, "Insurance - it's better to have it and not need it than to need it and not have it." Of course, if you wait until you need it before you decide to buy car insurance then you've waited too long. That would be akin to closing the barn door after the mare has already bolted.

On the other hand, if you spend your whole driving career covered by a comprehensive car insurance policy and never have occasion to file a claim, what you've paid for is a lifetime of protection that was there "just in case." The fact is, however, most drivers will file a claim sooner or later. According to the Insurance Information Institute, most drivers submit a claim every eight to ten years so, when the need does arise, it's not something with which you're likely too familiar. Here's some info about how car insurance claims work.

Filing a Claim

Even minor vehicle accidents can cause confusion, but it's important to keep your wits about you to ensure proper steps are followed after any incident. Having a simple checklist in your glove box can help. A cell phone with a camera or, at least, a pen and notebook should be available.

When you notify your insurer that you've had an accident a claim will be opened and you'll be assigned a claims adjuster. It's important that you provide as much accurate information as possible to the company so make a record of everything. Taking photos will help. Information you'll need include:

• Date and time of the accident
• Make, model, license plate number and registration information of other vehicles involved
• Other drivers' personal information, including driver's license numbers
• Name of their insurer and contact info
• Responding police officer's name and badge number

Your adjuster will examine your policy to determine your level of coverage, obtain the police report filed and contact those involved, including witnesses. The cause of the accident will be determined and the claim will be handled in accordance with all applicable information gathered. Providing your carrier with complete and accurate information will help speed up the process.

Your insurer is responsible for all contacts made with the other driver's insurance company. If your vehicle has been damaged but is still safely driveable, you may be asked to bring it in for a damage inspection.