Understanding The Car Insurance Claims Process

There are a number of situations where filing a claim is highly recommended:

• You cause major damage to your or another person’s vehicle – this may also depend on the type of at-fault accident.
• An injury happens as a result of an accident.
• You suspect insurance fraud. Something is not right about the situation with the other driver.

Your claim will generally fall under one of three categories. They are third party liability, collision insurance and comprehensive insurance.

When not to file a claim

Making a claim is an important decision. It can affect your record, car insurance rates and have a financial impact. Starting a claim should be a priority if your vehicle has major damage. But, it’s a minor car accident or smaller damage when you should think twice.

Here are some situations where you may not want to file:

• The damage may only be slightly more than your car insurance deductible.
• You have the funds to pay for the damage.
• You only cause minor damage.
• You caused the damage yourself. For example, you backed into a tree on your driveway.

In these situations, it may not make sense financially to file a claim because it could go on your record. An increase in rates could cost you more money long term than paying for the repairs yourself.

Here is a look at the general steps for filing a claim for a collision:

1. Report the auto accident (if applicable to your situation).
2. Contact your insurer.
3. Provide them with details about the incident.
4. Answer questions from your adjuster.
5. Get an estimate for the vehicle damage and repairs.
6. Choose an auto shop and schedule repairs.
7. Close the claim.

When you file a claim, you will be assigned an adjuster. Your adjuster will be your go-to contact person and assist you during the process. Once your claim is reviewed, your adjuster will explain your coverage and how it works in relation to your claim.

Your insurer will pay to have your vehicle repaired (in most cases). You will be responsible for paying your deductible. This amount will vary based on your policy. Your provider may waive it for at-fault accident damage.

Once your vehicle receives the necessary repairs, you will get it back, and your insurer will close the claim. The collision will then be recorded. If you were at fault, the claim will impact your rates in the future.

Filing a car insurance claim can be a reasonably quick process. Many insurers have a guarantee to get your claim started within 30 minutes or 1 hour of your call. The initial call with your adjuster can take 15 minutes to 1 hour, depending on the incident.

How long it takes to settle is a different story. Some can be rectified very quickly – in a matter of weeks. Others take longer to close. How long it takes to settle depends on the claim's type and details.

When submitting a claim, the time limit in Ontario is not a hard deadline. It’s recommended you file it as soon as possible, within seven days is ideal. Failing to report within a reasonable time frame could result in your claim being denied.

There are a number of reasons your claim could be investigated. Your insurer may suspect fraud, believe you have provided false information or investigate the degree of fault among the parties involved.

There are situations where your insurer refuses to pay your claim. The most common situations include:

• Your provided misleading claims information.
• There was an unauthorized driver behind the wheel.
• You were using your personal vehicle for business purposes.
• You broke the law.
• You are behind in your payments.
• You don’t have the proper insurance in place or driving without insurance.

You may or may not see an increase in your premium. If it’s your first claim or you are not at fault, your rates will not likely increase. In other situations, an increase in premiums will depend on many factors. They include the amount of damage, claim type, and being at fault will increase your rates. These factors are all determined on a case-by-case basis.