What Happens When You File An Insurance Claim? | Berger and Green (2024)

FAQs

What is the downside of filing an insurance claim? ›

It could increase your premiums

When determining your premiums, insurance companies consider your likelihood of filing a future claim — which could cost them money. The higher your perceived risk, the more likely you are to pay more in premiums. Your claims history tends to play a direct role.

It's crucial to file a claim for major property damage and bodily injuries. A claim might not be worth it for one-car accidents when nobody is hurt. A bad driving record could increase your auto insurance premiums for three years.

The insurance company will assign an adjuster to your case. This adjuster will investigate what happened and determine if they believe you suffered a covered event. In the case of a liability claim, they will also decide who they believe is liable for the accident that caused your injuries.

If the other driver never calls their insurance company back to answer their questions about the accident, many insurance companies will eventually deny insurance coverage. This turns your insurance claim into an Uninsured Motorist Claim.

You should consider filing a car insurance claim whenever your out-of-pocket costs would extend past your deductible. Reminder: your deductible is the amount you'll pay for certain auto insurance coverage types to kick in.

Getting a repair estimate is the key first step toward resolving your vehicle damage claim after an accident. When you're making an insurance claim after any kind of traffic accident, getting a trustworthy repair estimate (or two) is a necessary first step toward getting your vehicle fixed and back on the road.

Even if you've been considered a safe driver in the past, your insurer may re-evaluate your driving record and decide to raise your premium if new claims indicate you've become a riskier driver. However, filing a claim doesn't mean your insurance premium will automatically increase.

Will my car insurance go up after an accident? Unfortunately, the simple answer to this is yes. Whether the accident was your fault or not, making a claim will usually lead to an increase in your car insurance premium the next year and you could see an increase even if you don't make a claim.

Under California law, an insurer cannot increase your premiums when you aren't at fault.

How long can a claim take to settle? ›

The length of time a case takes to settle a personal injury claim can vary significantly, simple cases where liability is admitted can be settled in around 12 months or so. Large, more complex, high-value cases can take longer to settle.

When it comes to the value of specific items, condition is more important than age. An older item that's in excellent condition should be depreciated less than a newer item that's frequently used or one that's regularly exposed to water, sun, wind, etc.

You may be able to sue your insurance company for bad faith if they intentionally neglect to perform the duties necessary according to your policy. If the insurance company knows that the claim is valid but they deny it anyway, you may be able to sue for bad faith.

While many people avoid telling their personal insurance providers about accidents in a company or rental car to protect their no-claims, doing so could be viewed as non-disclosure. If providers' checks find you've withheld information, your policy could be invalidated.

If an insurance company denies a request or claim for medical treatment, insureds have the right to appeal to the company and also to then ask the Department of Insurance to review the denial. These actions often succeed in obtaining needed medical treatment, so a denial by an insurer is not the final word.

The greater the number of claims filed, the greater the likelihood of a rate hike. File too many claims—especially in a very short amount of time—and the insurance company may not renew your policy. If the claim is based on the damage you caused, your rates will almost surely rise.

Report the Claim Before Making Repairs

Because it could not accurately calculate the damage due to the repairs, the insurance company was not required to pay anything on the claim. Do not let this happen to you.

Submitting a claim to an insurance company helps cover expenses incurred due to a loss, which is a primary benefit of insurance. Insurance companies mitigate costs through negotiation and risk spreading, and policies are often structured to encourage prevention of losses.