How Car Insurance Claims Work

A car insurance claim is how you get your insurance company to pay for repairs or medical bills after an accident or other covered incident. You can usually file a claim online or through your insurer's app — the sooner, the better.

Be sure to gather as much evidence as possible, like photos and police reports, to support your claim. Depending on your coverage and the situation, you might file a collision, comprehensive, liability, personal injury protection or uninsured/underinsured motorist claim.

A car insurance claim is how you get your insurance company to pay for repairs or medical bills after an accident or other covered incident. It's what you have insurance for — this is when you reap the benefits of paying your premiums and any add-ons.

Depending on your coverage and the situation, you might file one of the following claims:

After an accident, you might file a claim against the other driver's insurance, or they might file one against yours. Don't worry, though; another person can't file a claim on your insurance without you knowing. Your insurance company will always notify you if a claim is filed against your policy, so you're in the loop.

The money you get from an insurance claim (the payout) is yours to use for anything you want. It can cover repairs and other expenses or even be saved. But if you don't fix the damage now, your insurer won't cover the same issue again. And if your car is financed or leased, you'll usually be required to use the payout for repairs, often going directly to the repair shop.

If your car is "totaled," it means the cost to repair it is more than its actual cash value (ACV). The ACV is what your car was worth before the accident, taking into account its age, mileage and condition. Your insurance company will determine whether your vehicle is totaled based on a few factors, including:

Note that if your car is financed or leased, the total loss process might differ slightly, as the lender or leasing company may also have a say in the matter.

After you file a claim, your insurance company assigns a claims adjuster to investigate. They gather evidence to determine who's at fault and how much the insurer should pay. Adjusters look at a few key pieces of information:

Remember that when calculating the value of your claim, insurance companies factor in depreciation. This is the decrease in your car's value over time due to wear and tear. So, even if your vehicle was in perfect condition before the accident, the insurance payout might not be enough to cover the cost of buying a brand-new replacement.

Filing a car insurance claim can raise your rates. To your insurer, a claim signals you're a riskier driver. Here's how it usually plays out:

How much your rate goes up after a claim isn't set in stone. It depends on a few things: how bad the accident was, your driving history, how many claims you've made before and your insurer's specific rules. A minor fender bender might not affect your rate as much as a major accident, and a clean driving record could soften the blow. However, more claims usually mean higher rates, and some insurers are stricter than others.

Your car insurance claim isn't always guaranteed to be approved. Insurers may deny claims for various reasons, including:

If your claim is denied, don't panic. You can negotiate with the claims adjuster, seek legal help or file a complaint with your state's insurance department.

Got questions about how car insurance claims work? We've got answers.