Being involved in a car accident can quickly turn a pleasant trip into a stressful, emotionally draining, and financially overwhelming experience. On top of dealing with potential injuries, damages, and emotional shock, handling the insurance claim process feels like an extra burden. That said, being familiar with how to file car insurance claim can make the process far less daunting and ensure you receive fair compensation without unnecessary delays. This article outlines a step-by-step guide on filing a claim, common mistakes to avoid, and shares practical tips to increase your chances of a successful settlement.
Car Insurance Basics
Prior to filing your insurance claim, it’s vital to understand the types of car insurance claims. Knowing these distinctions guides you on what your policy covers and how to approach your claim.
Comprehensive Insurance
Coverage includes
- Legal liability if you cause any damage or injury.
- Physical damage to your vehicle.
- Damage to a third-party car.
- Theft, fire, vandalism, or natural disaster.
What it does not cover
- Driving without a valid license card.
- False information on claims.
- Driving while intoxicated.
- Mechanical breakdowns or daily wear and tear.
- Using a car for unauthorized or commercial purposes.
Third Party Property Damage Insurance
Policy covers
- Damage to other people’s vehicles.
- Legal liability expenses in case of disputes.
Situations not covered
- Non-accident-related repairs.
- Damage to your own car.
- Theft, fire, or natural disaster affecting your vehicle.
Third Party, Fire and Theft Policy
What’s included
- Theft of your car.
- Fire damage to your vehicle.
Coverage exceptions
- Damage to your vehicle in a road accident.
- Mechanical failures or wear and tear.
- Damage caused by storms, floods, or hail.
- Injuries to you and your passengers.
Compulsory Third Party (CTP) Insurance
Scope of coverage
- Injuries or death of other people caused by your car in an accident.
- Medical treatment and rehabilitation costs for affected parties.
Limitations of coverage
- Your vehicle’s damage.
- Damage to other people’s vehicles or property.
Knowing your type of policy gives you clarity on your entitlements and helps you avoid unexpected issues when filing a claim.
Things to Consider Before Making an Insurance Claim
- Are you covered for this type of damage?
- Is the vehicle being used legally?
- Will your premiums increase?
- Is another party at fault?
- Do you have the necessary evidence?
- Will you have to pay the excess?
- How can a claim influence your no-claim bonus?
Step-by-Step Guide on Car Accident Insurance Claim
Ensure Safety First
After a car accident, you should keep yourself and others safe on the road. How:
- Move your car to a safe position.
- Call for medical help.
- If the road accident resulted in extensive car damage and serious physical injuries, instantly contact the police.
Note: Most insurers require a police report, so it’s best to contact the police as early as possible after a road accident.
Inform your Insurance Company
Many insurance companies require prompt notification, often within 24 hours of the car accident. You can even report your claim through mobile apps quickly.
Provide the insurance company with:
- Policy number.
- Brief description of what happened.
- Accident date, time, and location
- Details of other parties involved in the accident.
Failing to submit the report on time gives the insurer a reason to delay or deny your accident damage repair claim.
Note: In a brief description, it is crucial to include whether you consider yourself at fault or not at fault, and record the exact location of the accident, including street names, landmarks, or intersections. Such details allow the insurer to assess your claim precisely.
Collect Evidence at the Scene
Proper documentation strengthens your case. Gather:
- Capture the photos and videos of the damage that occurred to your car or others.
- Record names and contact numbers of the people who saw the accident.
- Collect a FIR copy from the police.
- Exchange insurance and driving license details with other drivers.
These documents protect you in arguments.
File the Insurance Claim Form
Once the insurance company is informed, you can file the claim either online or at their office.
Attach:
- Any medical bills for injuries.
- Copy of police report.
- Vehicle registration documents.
- Driving license copy.
- Photos and videos of the accident spot.
Ensure to fill the form truthfully; false statements can cause rejection.
Get your Car Assessed
The insurance company will assign an assessor to inspect your car. They handle the following:
- Verify the extent of damage.
- Estimate repair costs.
- Confirm whether the damage matches the accident report.
Do not start your car repair process before this assessment step, as it can deny the compensation.
Repair and Settlement Process
Depending on your insurer and policy, you have two car damage repair options:
Cashless Repairs
You can get the car repaired without any upfront payments from the garages where the insurers directly settle the bills.
Self-Funded Repairs
You can acquire the auto body repair service from your preferred garage and pay the bills yourself.
Note: Keep all bills, receipts, and proof of payment for your insurer’s record.
Tips on Choosing the Best Autobody Repair Shop
- Check for insurance and certifications.
- Ask for a portfolio by visiting the repair shop.
- Read reviews online and ask for recommendations.
- Compare cost estimates.
- Ask about warranties.
- Evaluate customer service through testimonials on the website.
- Check turnaround time.
Track the Claim Status
Many insurance companies offer online claim status updates. Regularly check it and respond immediately to further requested documents for smooth settlement and quick repairs.
Receive Claim Settlement
Once the insurer approves your claim, you will receive:
- Direct payment to the garage (cashless process).
- Payment to your account (self-funded repair).
The amount of settlement depends on:
- Policy coverage.
- Deductibles are mentioned in your policy.
- Market value of the vehicle.
- Depreciation of car parts.
After repair service, your car is road-ready.
Case Studies: Real-Life Car Insurance Claims
Successful Claim Settlement
A 57-year-old truck driver in Australia was rear-ended by a speeding truck while stationary at work, sustaining severe neck, shoulder, and back injuries. With legal support, he secured a $1,000,000 settlement after navigating complex CTP and Workers’ Compensation claims.
A Western Australian woman received a $275,522.89 compensation payout after a car accident resulted in a mild soft tissue injury to her neck, aggravated pre-existing lower back pain, and exacerbated depression.
False Claim Settlement
In 2011, Melbourne artist Kelly Flanagan set her pink Hummer on fire and falsely reported it stolen to her insurer. She lied to investigators about the incident. In 2023, she pleaded guilty to attempted insurance fraud over $30,000 and received a 15-month suspended jail sentence.
Reasons Car Insurance Claims Get Rejected
Late Claims
Submitting a claim late to the insurance company is a leading reason for denial.
Policy Exclusions
Claims related to scenarios including war, intentional car damage, or mechanical failure will be denied.
False Information
Providing false or inaccurate information is also another major reason for rejection.
Unauthorized Repairs
Getting your car repaired without insurance company approval or outside the network can void your claim.
Incomplete Information
Missing reports or information can cause the insurer to decline your claim.
Coverage Disputes
When you and your insurer don’t agree on whether your policy covers the damage, the claim gets rejected.
Driving without a License
The insurance company will refuse the claim if the driver did not hold a driving license.
Drunk Driving
Accidents caused under the influence of alcohol or drugs are not covered by insurers.
Coverage Deficiency
If your policy limit is less than the cost of damage, the insurer may partially or fully reject the claim.
Duplicate Claims
When the same claim is mistakenly filed more than once, insurers will dismiss the duplicates.
Smart Ways to Secure an Insurance Settlement
- Read your insurance policy carefully to understand inclusion, exclusions, and limits.
- Always keep a claim kit including the documents and emergency contacts.
- Never make any false statements.
- Choose cashless repairs for a hassle-free experience.
- Keep yourself calm throughout the insurance claim process.
- If your passengers are injured, keep the documents with you.
- Don’t be silent; actively track your claim.
- Never argue with the other party who is at fault.
When to Not Consider Claiming Insurance
- Minor repairs cost less than the excess.
- To protect your no-claim bonus.
- Single small scratch or dent.
- No third party involved.
- Previous claim history.
Conclusion: Ensure Mind Peace Through Smart Claim Process
Car accidents are unfortunate events, but knowing how to claim insurance for a car accident can save you from prolonged disputes and financial stress. The process requires prompt action, ensuring safety, accurate document submission, cooperation with the insurer, and following the claim process steps accurately.
By actively managing your claim and taking the right decisions, you can make a successful claim more likely. Whether it’s a minor fender bender or a severe structural issue, the insurance company helps you with affordable or free accident damage repair.
