What You Need To Know About the Insurance Claims Process

While insuring your vehicle is a great way to protect your investment, no one ever wants to find themselves acting on it. However, accidents happen, and if you aren’t familiar with the insurance claims process, you may end up making costly mistakes.

Here’s a guide that can help you understand how insurance claims work and what you need to know before filing an insurance claim.

How Do Auto Insurance Claims Work?

Once you get into an accident, you’re required to file a claim with your insurance provider for compensation. Normally, an adjuster will inspect the damage to your vehicle and injuries caused, and offer you a certain amount, depending on your auto insurance coverage and terms.

Your insurance claim can also cover you for damages when you’re at fault. It’s vital to note that each time you file an auto insurance claim, you’ll have to pay a deductible out-of-pocket before receiving your reimbursement.

What You Need To Know

Although the insurance claims process can be complicated and challenging, understanding your policy ensures you receive the compensation you deserve. Luckily, you can seek the experience and expertise of a lawyer when filing your insurance claim to ease the process.

Lawyers understand how insurance claims work and can provide you with quality service that guarantees you get reimbursed.

Here’s what you need to know about your insurance claims process:

Insurance Claims Process

1. Communication With Your Insurance Company Is Vital

After an accident, you should inform your insurance company, whether it’s covered under your policy or not. Most insurance companies have a timeline for filing claims, and they can easily deny liability if you fail to adhere to these rules.

Besides, failing to notify your provider makes them question the legitimacy of your claim and the severity of your damages. Therefore, always inform your insurance company about your accident and maintain constant contact with them.

2. Paperwork Can Make Or Break Your Case

There’s more to filing your claim than making a request to your insurance provider for compensation. You need to support your claim by filling out forms, giving out a statement regarding the accident and your loss, and sharing critical pieces of evidence such as photographs.

Such details are vital as they help your insurance provider determine the exact details of your auto accident.

3. Damage Appraisal Is A Must

Damage appraisals aim to identify the scope of damage and the cost of repairs. During the process, your adjuster assesses the full extent of the damages you’ve reported taking into account the options you’ve chosen under your insurance policy. They then determine whether your car can be repaired or declared a total loss.

4. You Have To Pay Your Deductible

Building on the earlier discussion, it’s important to understand the role of deductibles in the insurance claim process. When you file a claim, you are typically required to pay a deductible, which is the initial amount you contribute towards the repair or replacement costs. This deductible is a standard component of most insurance policies.

In the event that your vehicle is declared a total loss due to the extent of the damages, your deductible will be subtracted from the compensation you receive from the insurance company. This means that you will be responsible for covering this deductible before the insurance payout kicks in. However, it’s worth noting that this deductible deduction may not apply in certain cases, particularly if your claim is part of a liability case.

Liability cases involve situations where another party is deemed responsible for the damages to your vehicle. In such cases, their insurance may be responsible for covering the costs, and your deductible may not be applicable. It’s crucial to discuss the specifics of your insurance policy and the circumstances of your claim with your insurance provider to understand how deductibles apply to your situation and whether they will impact your compensation.

Remember, there is no “one-size-fits-all” outcome when it comes to the insurance claims process. Contact us to learn more about filing insurance claims.