Learn more about auto Insurance Claims and Your rights
An insurance company may not:
turn you down or charge you more because of your race, color, religion, or national origin.
turn you down or charge more because of your age, gender, marital status, geographic location, or disability unless the company can show that you’re a greater risk for a loss than other people it’s willing to insure.
turn you down, charge you more, or treat you differently than other people in your rate or risk class unless the company can show that you’re a greater risk than others.
turn you down or charge you more only because of your credit score.
Discounts help lower your premium. Each company decides what discounts
to offer and the amount of the discount. You might be able to get a discount if you have:
airbags, antilock brakes, and antitheft devices in your car.
completed a defensive driving or a driver education course.
more than one car on a policy.
other policies with the same insurance company.
no claims and a good driving record.
If you ask, a company must tell you in writing why it turned you down,
canceled, or didn’t renew your policy. You may complain to us if you think a
company improperly denied, canceled, or nonrenewed your policy. to the other
driver and passengers if you cause an accident
Cancellation means either you or the insurance company
stops coverage before your policy’s end date. A company must give you 10 days’
notice before it cancels your policy. A company may cancel your policy
in the first 30 or 60 days for any reason, unless the cancellation violates a law(Check with your state)
you stop paying your premiums.
you file a fraudulent claim.
your driver’s license or car registration is suspended or
revoked (this also applies to other drivers who live with you or use your car).
To help make the claim process go smoothly, follow these tips:
Get the other driver’s name, address, phone number, and license plate number.
Write down the exact name of the other driver’s insurance company, the company’s phone number, and the policy number. To save time, take a picture of the other driver’s insurance card. If the other driver refuses to tell you the name of his or her insurance company, call the police.
Give the other driver the same information about you.
Get the names, addresses, and telephone numbers of any witnesses to the accident. Give this information to the insurance company. Independent witnesses can help prove fault if you were in an accident caused by another driver. If you don’t have witnesses and the other driver denies fault, his or her insurance company might deny your claim.
Call the police if you were hit by a driver who left the scene. Your uninsured motorist coverage won’t pay for a hit-and-run accident if you didn’t report it to police.
Call the police if anyone was injured.
Note the time, date, and exact location of the accident.
Also record any special circumstance like weather and road conditions. Take pictures of the accident scene. Give this information to the insurance company.
Tell your company about the accident as soon as possible. Most companies have deadlines for filing claims. Your insurance card should have a number you can call to report claims. Explain what happened and answer questions as thoroughly as possible.
Send the company copies of the police accident report. It usually takes a few days for the police offer to file a report. Get the officer’s name and badge number so you can follow up if you need to.
Tell the company if you were injured. If you went to the emergency room or to a doctor, give the company copies of the medical reports and doctors’ bills.
Depends on which state you lieve law sets deadlines for insurance companies to
act after you file a claim. A company must:
Tell you it got your claim within 15 days of getting notice.
The company may ask you for a signed proof-of-loss form or for more information.
The company may also ask you to have a medical exam.
Have an adjuster look at your damage. The adjuster will estimate the cost of repairs.
The company will base its payment on the adjuster’s estimate. If the damage turns out to be worse than the adjuster originally thought, you or the repair shop can talk to the adjuster about raising the estimate. If you can drive your car, the company might ask you to take your car to one of its claim centers so an adjuster can look at it. Some companies might ask you to get your own estimates and provide them to the company.
Accept or reject your claim within 15 business days of getting all the information
it needs from you. A company that needs more time can take 45 days to decide whether
to pay your claim. It must tell you the reason for the delay. If it denies your claim,
it must tell you why in writing.
Send you a check within five business days after it agrees to pay your claim.
The prompt payment law doesn’t apply if another driver’s insurance company
is paying the claim. But the company must act in good faith and try to
settle your claim quickly and fairly.
Insurance companies will pay for repairs or replacement of your car only up to its actual cash value. Actual cash value is the cost to replace your car, minus depreciation. Depreciation is a decrease in value because of wear and tear or age.
Some companies might give you a list of preferred repair shops, but they can’t require you to use a shop on its list.
The insurance company is only required to pay for parts of like kind and quality to those that were damaged. It doesn’t have to pay for original parts from the manufacture
If you believe the other driver was at fault, but his or her insurance company won’t pay your claim, file a claim with your own insurance company. You must have collision coverage to do this. Your insurance company will probably try to collect from the other driver’s company.
Be aware that if you file a claim with your own company, you’ll have to pay a deductible.
If the other driver’s policy limits aren’t high enough to pay for all your car repairs, file a claim with your insurance company. Your collision or uninsured/underinsured motorist coverage should pay the difference. If you file a claim with your insurance company, you’ll have to pay a deductible.
If the other driver’s limits aren’t enough to cover all your medical bills, file a claim with your auto insurance company or your health insurance company. Your auto insurance company will use either your PIP coverage, medical payments coverage, or your uninsured/underinsured motorist coverage to pay the difference. You might have to pay a deductible.
If the cost to repair your car is close to its current value, the company will probably decide to total it. This means the company will pay you to replace your car rather than fix it.
If the company totals your car, it will pay your car’s value minus depreciation. Depreciation is a decrease in value because of wear and tear or age. For instance, if your car is 10 years old, the company will pay you the value of a 10-year-old used car. It won’t pay to replace your car with a new car that’s the same make and model as your totaled car.
Be prepared to negotiate with the company to get what you think is a fair deal. A company might raise its offer if you can show that your car would sell for a higher price. Get written price quotes for a similar car from used car dealers. You can also look in the classified section of your local newspaper for used car prices.
If you still owe money on your car, the amount the company will pay you if it totals your car might not be enough to pay off your loan. This will happen if the market value of your car is less than what you owe. Auto dealers and lenders usually offer guaranteed auto protection, or gap, insurance for this.
If your accident was caused by another driver, the other driver’s insurance company will pay for you to rent a car. You can keep the rental car for the time the company believes is reasonable for your car to be repaired. The company will base the amount of time on the estimated number of hours of labor. Be sure to let the adjuster know about any delays in getting your car fixed. The company might extend the rental if there are delays because the repair shop had to order parts or found more damage.
If the company totals your car, it will probably stop paying for the rental a few days after telling you.
Your insurance company will pay for a rental car if:
you have uninsured/underinsured motorist coverage and the driver who caused the accident didn’t have insurance or enough insurance.
you have uninsured/underinsured motorist coverage and the accident was a hit-and-run.
you have rental reimbursement coverage and were in an accident.
you have comprehensive coverage and your car is stolen.
Your insurance company will pay for a rental car only for the time it believes is reasonable to repair or replace your car. It will pay a set amount each day and only up to your policy’s rental coverage dollar limits.
If you were injured in an accident caused by another driver, the other driver’s insurance company will offer you a settlement to cover your medical bills related to the accident. The company will also ask you to sign a release promising that you won’t file more claims for the accident. Before you sign the release, talk to your doctor about any future medical treatment you might need. Consider this information to decide whether the company’s settlement offer is fair.
If you think a company is delaying payment to pressure you to sign the release, complain to your state where you live/your insurance company
If you disagree with the adjuster’s estimate or the amount the company
is offering to pay you, tell the insurance company why. You might be able
to work things out by talking with the company or the adjuster.
If that doesn’t resolve the issue, here are your options:
The appraisal process is for disputes about the amount of your claim.
If you use appraisal, you and the insurance company each hire an appraiser.
The two appraisers then choose a third appraiser as an umpire. Your appraiser and the company’s appraiser each estimate the amount of your loss. If the estimates are different, the umpire makes the final decision. The umpire’s decision is binding on both you and the insurance company. You pay for your appraiser and half of the umpire’s expenses. You can use appraisal only for disputes with your insurance company. You can’t use it to resolve disputes with another person’s insurance company.
Your complaint must be in writing. You can use our Online
Complaint Portal. Understand that our ability to help might be limited.
For instance, we can’t decide who was at fault in an accident or determine damage amounts.
You might have to file a lawsuit to resolve the issue.
If your claim is for less than $10,000(Check with your state law), you can use Justice Court.
Justice Court is a special court that handles small-claims disputes.
You don’t need an attorney, but you have to pay a filing fee and other
court costs in advance. If you win, you can get that money back.
Discounts may be allowed by the company you chose for any or all of the following:
1. Multiple vehicles on the same policy. This discount is offered to consumers who insure
more than one car with the same insurance company. Statistics show that individuals and
families that insure more than one car have better than average claim experience.
2. Driver Education courses. A discount is given to younger and older drivers who can prove
completion of a certified driver-training course.
3. Good Student. Students who earn a B average or better tend to be more responsible drivers
and may be eligible for this discount.
4. Safety devices. Certain safety devices can result in lower cost by preventing accidents or
limiting their severity. Discounts may be available for air bags, automatic seat belts and antilock brakes. Proof that your car is equipped with these items must be shown.
5. Low mileage. The fewer miles you drive, the less chance you have of being involved in an
accident. Some companies offer discounts for drivers who participate in car pools or drive to
and from work on a limited basis.
6. Good driver/renewal discount. Drivers with a good driving record are given discounts by
most companies as are those who renew their policy with the same insurer.
7. Auto/Home package. Some insurers offer a discount on one or both policies if an individual
buys both homeowners and auto coverage from them.
8. Anti-theft devices. The installation of devices or systems that deter theft or vandalism may
also qualify you for a policy discount. Again, proof of installation is required.
9. Dividends. While dividends are not discounts, they do serve to lower premiums. Some
insurers offer dividends to policyholders if the sale of auto insurance is profitable for them.
These are declared and paid after the policy period has expired and, in some cases, may be
applied directly to the following year’s premium.