Car accidents always demand a heavy price, not just metaphorically but also from medical injuries to car damage; getting it back to its shape may cost you an arm and a leg. To prevent that, it is vital to have insurance to cover your expenses at a greater level.
About 6 million crashes are reported by police every year in the U.S., according to the National Highway Traffic Safety Administration.
Approximately three million people are injured or killed in these car accidents, so many lawsuits and insurance claims occur yearly.
The following section describes the procedure to be followed for insurance after a Car accident:-
- First, look if you have any injuries or not
- Then make sure that everyone around is okay or not
- If you’re injured, look for help around or call 911
#2 Call 911
Even if it is a minor accident, you must call the police at 911, and in some states, it is even required legally. The officers will fill out an accident report, documenting the scene. If the police don’t come to the scene of the accident at that time, you must go to the nearby police station and get a report filed yourself.
What To Do Before Approaching the Insurance Company?
#1 Documenting
It is important to document each step as you begin claiming insurance. You must get the other driver’s name, license plate number, insurance information, and phone number. You can only file a claim with their insurance company if you do this. Notify your insurance company as well. They can help you with the procedure and may provide some services to help you with your claim.
Make sure you call the police immediately after the accident. Then, when their report is completed, request a copy. It may take a few days, so make a note to call and visit your local police station to obtain a copy. Consult a doctor and have any injuries documented in your medical record. Document the accident thoroughly by photographing your vehicle from various angles, demonstrating the damage done to both cars to prove that the amount you claim is fair and just. If there was any witnesses to the car accident, take down their names and contact information.
#2 Report and begin settlement claim
You’ve started the process by filing a claim. You must notify your insurance company if the other driver doesn’t have insurance. Check that you have all the information you’ve gathered for your agent. They can assist you in filling out forms or advise you on getting the settlement you require. Because state laws differ, check with your insurance commissioner’s office to see if there are any additional steps you need to take to settle the claim.
#3 Check your mail
Following your claim submission, the insurance company will acknowledge by sending you a letter indicating that it has received your claim and will contact you. This is known as a “reservation of rights” letter. It only serves to notify you that the agency has received the claim, not that it is taking action. You should consult with a lawyer at that point. A lawyer can guide you through any issues that may arise and represent you in court if the claim proceeds that far.
#4 Continue to negotiate the settlement claim
The insurance company will issue a settlement check after calculating the value of your claim. If your claim is denied, or you believe the settlement amount is insufficient, you may be able to negotiate with the insurance company. You may appeal the company’s decision if you cannot reach an agreement. An appeal may necessitate additional examinations or the provision of additional information and evidence about the accident.
If you are injured, or your property is damaged, you should send a letter outlining your medical costs and out-of-pocket expenses. Include any income you may have lost as a result of the accident. The claims adjuster should reply to your assessment with their letter, or they may send one first.
They will frequently offer you less than you believe you are owed. That offer is expected as part of the process. It would be best if you don’t take it personally. You have two options: accepting the insurance company’s offer or continuing to bargain. If you can’t decide with the other party, you may need to file a lawsuit. Hopefully, this will be different.
Always remember that you’ll need patience and self-assurance to file and settle an auto accident claim is time-consuming. Seeing it as a successful settlement can take time, but it’s worth fighting for the money you’re owed.
#5 Insurance claim value calculation
Though calculating medical expenses and lost wages is usually relatively straightforward, putting a monetary value on the pain and suffering a person suffers due to their injury is more complicated. Insurance companies have developed formulas to calculate how much to pay the injured for non-monetary losses. First, the insurance claims analyst totals all of your medical expenses. If the injuries are minor, this total is usually multiplied by 1.5 or 2. (Depending on the situation’s intensity the multiplier typically ranges between 1.5 to 5, depending on the situation’s intensity). This calculation is used to specify the number of your special damages incurred with finite, measurable charges (as opposed to general damages, which are damages without explicit monetary values, such as emotional distress).
If the injuries are acute, the total may be multiplied by a higher number, such as five, if the injuries are severely incapacitating. After determining the number of special damages, the analyst sums the value of your lost wages to determine the amount of your settlement. You can then often negotiate a higher settlement with the insurance company.
Types of Insurance Claims
Insurance claims are of two types: first-party claims and third-party claims. A first-party claim is filed with your insurance company, whereas a third-party claim is filed with another person’s or business’s insurance provider. Most insurance companies provide coverage for those injured due to the insurance company’s actions.
Who is at fault will determine the type of claim you File in the accident, the nature of the accident, and the amount of insurance coverage available. For example, if you were driving in your car and had an accident, you should file a first-party claim with your auto insurance company.
If, on the other hand, a car hit you while crossing the street or you were in some other person’s car, you should file a third-party claim with the driver’s auto insurance provider. If someone else hits you, you will file a claim against their liability insurance. This is a third-party claim because you are the third party to the other driver and the insurance company concerned. The other party’s insurer will process the claim but don’t expect a quick payment. The insurer may want to investigate the accident to determine if their customer was at fault.
However, it is also recommended to notify your own insurance company. Suppose you were injured while shopping or eating at a restaurant. In that case, you could file a third-party personal injury claim with the business’s insurance company or land/property owner. These claims cover both bodily and property damage.
Common Reasons for Auto Claims Denial
The auto insurance claims process can be very stressful at times. Common reasons for claim denial include:
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The accident could have been avoided or prevented:
The claim may be denied if the insurance company believes the accident could have been avoided, for example, by allowing an unlicensed driver to operate your vehicle.
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You should have filed your claim on time:
Customers should file claims as soon as possible, according to insurance companies. And it’s prudent to do so before the evidence has become muddled, or the accident witnesses have vanished. States may impose strict deadlines for filing claims, ranging from one to twenty years.
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Delaying medical treatment:
You may not know the full extent of your injuries immediately following an accident. However, if you delay treatment for injuries for an extended period of time, the insurance company may become suspicious of the claim, resulting in an investigation and, possibly, a denial.
Following an accident, it is critical to state the facts. If unsure about what happened, don’t speculate or accept blame at the scene. Don’t be too forthcoming; too much information may impact the outcome of your claim.
What To Do?
If someone has been seriously injured or it is unclear who is to blame, the process of filing a claim can be complicated. Depending on your residence, there may also be a liability time limit — known as a statute of limitations. Keep the following in mind when filing your auto insurance claim:
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Don’t wait any longer:
Once you’re safely home, you can file a claim using an insurer’s online claims system, mobile app, or phone agents. It is preferable to begin at the earliest while you still remember the details of the accident clearly
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Understand what to expect:
You must pay a deductible if you are at fault and file a claim with your insurer. If you file a claim against the other party’s insurance, you will not be required to pay a deductible.
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Notify your passengers:
Passengers injured in a car accident can file claims with the driver’s insurance company or their own. Filing a claim through another driver’s insurance is also an option, depending on who is at fault.
No matter how thorough or fair, your claim is, the insurance company could try to avoid paying the money you think you are entitled to. This is because insurance companies want to turn a profit and avoid paying more than necessary. If you are doing everything accurately, try to feel free to ask for too much.
Although it might be stressful, settling a car accident claim involves negotiation. Even though these ideas do not cover every situation, they will give you enough of a head start to let the adjuster know that you have a general understanding of how the system works.
Support your claim with all of these facts.