How to Deal With Insurance Companies After a Car Accident

Car accidents are incredibly traumatic, both from a physical and emotional point of view.

Safety and mental health are obviously priorities, but once all is said and done, you may be left dealing with the stress of getting a claim through your insurance.

This is why we decided to create this guide. We’ll walk you through the steps you need to take if you’ve been involved in a car accident to get your insurance claim processed accurately and quickly.

Let’s jump right into it.

Insurance Claim Process

The insurance claim process is pretty complicated, and the last thing anyone wants to deal with if they’ve been in an accident.

To give your claim the best chance of success, it’s important to have proper documentation and communicate clearly with insurers on the facts.

At the Scene of the Accident

Call 911 immediately if there are injuries or significant vehicle damage. Law enforcement will create a police report, which is crucial for the insurance claim. Take photos of the accident scene, including vehicle positions and damage. Gather contact information from other drivers and witnesses.

Document road conditions and any traffic signs or signals. Note the time, date, and exact location of the accident. If safe to do so, move vehicles out of traffic. Do not admit fault or discuss the accident details with anyone except law enforcement.

Communicating with Insurance Companies

You should always contact your insurance company as soon as you can after the accident - give them all the details you can, sticking to the facts rather than speculation (this can be tricky!).

Insurance companies may assign a claims adjuster to your case. Keep detailed records of all communications, including dates, names, and conversation summaries. Be honest and consistent in your account of the accident.

Important: Never accept a settlement offer without fully understanding its terms and implications.

Evaluating the Extent of Damage and Losses

It’s super important to have your car checked by a reputable mechanic - if you have a loan on your car, your car dealer will likely have someone to recommend.

As well as your car, get yourself checked over by a doctor even if you feel fine, and keep track of any medical bills.

Create an itemized list of damaged personal property. Take photos of visible injuries and property damage. Keep track of all accident-related expenses, including medical bills, lost wages, and transportation costs.

Consider future expenses that may arise from the accident, such as ongoing medical treatment or diminished vehicle value. If the insurance company's offer seems low, don't hesitate to negotiate or seek legal advice.

Navigating the Settlement and Repair Process

The settlement process, as well as getting your car repaired (or scrapped) can be a massive headache.

Here is a quick overview of how it works and what you can expect.

Handling Repairs and Total Loss

When dealing with vehicle damage, insurance companies assess whether repairs are feasible or if the car is a total loss.

The claims adjuster inspects the vehicle and obtains repair estimates. If repair costs exceed the total loss threshold (typically 70-80% of the car's value), the insurer may declare it a total loss.

If the car is repairable, you can choose a shop to get it fixed or go with the one recommended by the insurer - it’s better to go with a trusted mechanic in these cases, and dispute any discrepancies between their quote and the insurance.

In total loss cases, the insurance company offers the actual cash value of the vehicle minus the deductible. Owners should research their car's market value to ensure a fair settlement.

Calculating Compensation and Reimbursement

Compensation for car accidents extends beyond the basics, such as repairing vehicle damage.

Insurance companies consider medical expenses, lost wages, and pain and suffering when applicable, using various formulas to come up with financial amounts for these types of things.

This is why keeping detailed records of all accident-related expenses is so important. This includes medical bills, rental car costs, and any out-of-pocket expenses.

Insurance companies typically reimburse these costs, subject to policy limits.

It's important to understand concepts like betterment and depreciation, as these can affect the final amount:

• Betterment refers to modifications to the car that increase its value, like a new exhaust or a custom paint job. Insurance policies usually have a clause to ignore these in terms of the value of the car.
• Depreciation means how much value the car has lost since you bought it, and this will be factored in to the settlement.

Insurers might deduct for wear and tear on replaced parts, potentially reducing the payout.

Legal Representation and Negotiation

Legal help might be necessary, especially if you think your claim could be quite large.

An attorney can help navigate the claims process, interpret policy language, and negotiate with the insurance company - keep in mind you can also still be sued even if you have insurance.

Insurance adjusters aim to settle claims quickly and cost-effectively. Policyholders should be prepared to negotiate, especially if the initial offer seems low.