How to File a Car Insurance Claim with Your Insurance Company

As with any “how to” type stuff, this is only a basic guide for you, things differ from state to state, heck, things differ from company to company too – so don’t take this as gospel but just as a guide. It’s really intended to simply lead you in the right direction.

The first thing you need to do if your vehicle is either stolen or damaged is to inform your auto insurance company – for this you will need a claim form.  Even if you didn’t actually cause the damage, but it was down to a third party, it may still be necessary to make a claim on your own insurance, depending on the type of cover you have. If you file the claim with your own insurance company then this is known in the trade as a “first party” claim, and if you file it with the insurance company of the other chap, it’s known as a “third party” claim. I wonder what happened to the second party??

First party claim means that it’s down to your insurance company to fulfil it’s obligations as stated in your auto insurance policy.

Third party claim means that you don’t actually have a contract with the insurance company (it belongs to the other fella’) and their primary obligation is not to you but to their client and policy holder.

Anyway, regardless of what sort of claim you’ll be making, here are a few things which you need to do as soon as possible after your loss:

• let your insurance company or insurance agent know all of the details.
• inform the police immediately if your vehicle is stolen, damaged by a driver in a hit-and-run situation or vandalised in any way. You’ll need the police report to substantiate your claim, insurance companies won’t cough up any cash without proof, and a police report is just that.
• let the insurance company assess the damage to your vehicle before any repairs are carried out – very important point that one.
• protect your vehicle from suffering further damage if possible – let’s think of an example - if you have a smashed window and you don’t cover it, then it rains and your car upholstery is damaged because of the rain, they might refuse to pay you for the extra damage because you did not take precautions to protect it.
• be fully co-operative with the insurance company during their investigation.
• check out the specific instructions from your particular insurance company, they might be under “conditions” or alternatively they might say “duties after a loss”.

Information Your Insurance Company Will Need

• You need to pass on any legal document which you have as a result of the loss or accident (police report etc).
• Sworn proof of your side of the story. What happened, what the vehicle was being used for etc. There are some really classic cases of how people have described such events – “I was driving along and a tree jumped out into the middle of the road” – “I turned into my driveway and bumped into a wall which isn’t usually there” – yep, it’s for real. There are loads more barmy excuses, do a search one day when you need a laugh, but not to get any ideas for your own claim – they’ve heard them all before.
• The insurance company might need other stuff relating to your expenses too – medical bills, repair bills for the vehicle etc.
• Depending on the type of auto insurance you have (and the insurance company you choose), they might ask you to submit estimates for repair to any damage which your vehicle has sustained. They’re not going to believe the first one that you come up with, they might ask you to gather 2, 3 or even 4 estimates before they decide on who you should instruct to complete the repairs.
• Storage fees might be involved too, especially if your vehicle is so badly damaged that it can’t be driven, so your insurance company will need to be informed about that. They might agree to pay for the storage for a set number of days or weeks only, giving time to get the vehicle repaired. They’ve got to keep you fully informed though, they can’t just stop paying for it without notice.

A Few More Frequently Asked Questions About Claiming on Your Car Insurance

Q – Can I choose which vehicle repair shop I use? 

A – Yes if you want to, but if your chosen repair shop charges more for the repairs than the one suggested by the insurance company be prepared to cough up the difference.

Q – How will the insurance company value my vehicle?

A – They usually use a published guide or manual of some sort.

Q - Can the insurance company simply replace my vehicle?

A - Yes, as long as it’s comparable to the one which was lost or stolen. You’ve got to have the opportunity to inspect the vehicle, close to home at a licensed dealership, before you accept it.

Q - Will the insurance company pay off the car loan?

A - No, sorry, nice try. They’ll only pay the actual cash value of the car, not the amount of the loan, so if the car is worth less than the amount owed on it you have to pay the difference yourself.

Q - Will the insurance company pay for me a hire car?

A -  Check out your policy. They will usually pay for a hire car if your car is stolen from 48 hours after the theft. You must have already reported the theft to the police and to the insurance company. If the claim is for something other than theft then this might be included if you chose to add Rental Car coverage to your insurance policy.

Q – Will the insurance company reimburse me for any personal items which were in the vehicle at the time of the accident or theft?

A – The chances are not. They usually only cover auto related items, however, this may be covered by your home insurance or renters insurance policy.