Most people know that the first step after a car accident is to report the incident to their insurance company. However, you may not fully understand how the auto accident claims process works.
You don’t want any aspect of the claims process to blindside you. So, below is a detailed explanation of the auto accident claims process. If you have questions about submitting a claim or filing a lawsuit, speak to a car accident attorney in your area today.
Types of Auto Insurance Claims
You can file two types of insurance claims after an auto accident.
First, if you believe another driver caused the crash, you may file a third-party claim against their auto insurance.
Second, depending on the situation, you may need to file a first-party claim with your insurance provider. You usually must at least report any accident with your insurance company, and filing a claim may also be needed.
Third-Party Claim
A third-party claim is any auto insurance claim you file on another party’s policy. You do this if you believe another driver was to blame for the crash. You file a third-party claim to obtain compensation for your medical bills, lost earnings, and property damage.
You may need your car accident attorney to file and oversee a third-party claim, especially if you have serious injuries and property damages.
First-Party Claim
You may wish to file a first-party claim with your own insurance policy for several reasons:
- You reside in a no-fault auto insurance state and want to obtain personal injury protection (PIP) benefits for your initial medical bills and lost income. Once those benefits are exhausted, you can file a personal injury claim against the at-fault driver if you have a significant injury.
- You are claiming car damages under your collision policy.
- The at-fault driver doesn’t have insurance or enough insurance to pay for your damages. In this case, you can file an uninsured or underinsured driver claim on your policy if you have that coverage.
Report the Auto Accident to the Insurance Company
The first step after the accident is to file the insurance claim with your or the other party’s insurance company. Most people file a claim with their insurance company and retain a car accident attorney if they want to file on the at-fault party’s policy.
Here are the steps:
- Provide the insurance company with your name and contact details.
- Provide the year, model, and make of the car you were driving.
- Provide the names and contact details of others involved in the crash.
- Provide details about the crash, including when, where, and why it occurred.
If it is a first-party claim, you should have your auto insurance policy number available. You may need to tell the representative about your auto policy provider if it is a third-party claim.
Remember, if it is a serious accident with injuries, you usually should have a car accident lawyer deal with the other driver’s insurance provider. You can talk to the other party’s insurance company, but keep the conversation to the facts only.
An attorney should handle any discussion about your injuries and other damages.
Investigate the Car Accident Claim
After you file your claim, the insurance company will investigate. Every auto insurance company is slightly different, but it will research and investigate to determine if your prediction is accurate.
Some of the investigation steps may include:
- Interview you: The insurance company will ask detailed questions about what happened and who was involved. You may want a car accident attorney to represent you if it is a serious accident or if fault is disputed. This will reduce the chances of making an inaccurate statement that can affect your claim.
- Interview passengers: If passengers are in the car, the insurance company may want to talk to them. This is more common if there are serious injuries that require ongoing care. Your car insurance policy should cover a certain amount of passenger injuries and losses.
- Interview witnesses: The insurance provider may want to talk to witnesses who can explain what happened. If possible, it is important to obtain eyewitness contact details. Your attorney can get them, but it’s usually easiest if you obtain contact information yourself immediately after the crash.
- Look at the vehicle: The insurance adjuster must look at the vehicle to determine damages. They will verify the damage that occurred, its previous condition, and any other factors to consider. The insurance adjuster may rely heavily on the video and photos of the car damages that you took.
If it was a serious accident with a totaled vehicle and injuries, you should use caution when talking with the other driver’s insurance company. You may want to have an attorney deal with them.
Initial Car Accident Settlement Is Offered
If you are dealing with a first-party claim, such as in a no-fault state, your insurance company will generally cover your vehicle repairs and replacement, as well as a certain amount of medical expenses and lost earnings.
Most minor auto accident claims in no-fault states are handled with PIP insurance coverage. You may want to retain a car accident attorney if you have serious injuries and more damage. They can tell you if your case qualifies to file a personal injury lawsuit.
If you have filed a third-party claim, the insurance company may make an initial settlement offer for your medical bills, lost earnings, and pain and suffering. It isn’t usually a smart move to take their first settlement offer.
The insurance company initially offers a small amount to see if you will take the money and close the case. Your case is likely worth more than the initial offer. You should usually have a car accident attorney review any settlement offer you get in a third-party claim.
You should consider several factors when deciding to accept or reject a settlement offer:
- Are you at maximum medical improvement (MMI)? This means that your injuries have improved the most possible. If the crash seriously injured you, you should never accept an initial settlement offer without reaching MMI.
- Will I miss more work time? If you are not back to work and don’t know when you will be, you probably shouldn’t accept the offer.
- How much is my pain and suffering? You may consider a settlement offer if you are mostly healed and not in pain. But if you are still in pain, you may want to negotiate for more.
Engage in Further Insurance Settlement Negotiations
You will most likely want to negotiate for a higher settlement after the initial offer. Insurance companies seldom offer the maximum case value in the first offer. You and your car accident attorney can continue to negotiate until you get what you think is the maximum offer that you will get.
The auto insurance adjuster may tell you that this is their final offer. It is up to you and your attorney to accept the highest offer and settle the case. If your attorney states that the settlement offer is fair and you likely won’t get more by suing, you should strongly consider their advice.
Court cases aren’t certain, and just getting to the court date can extend the case by months.
File a Personal Injury Lawsuit
Most auto accident claims end with an out-of-court settlement. Both sides of the dispute usually benefit by settling the case without a lawsuit. On your side, you get a certain amount of guaranteed money in your pocket, and a settlement is faster than going to court.
On the insurance company’s side, they settle the case faster without the risk and expense of a trial. A jury can award much more money to you; juries often side with injured parties over insurance companies.
However, there are cases where the insurance company may not offer enough money to settle. You and your attorney may think the case is worth more than the adjuster offers. Also, your attorney may think your case is so strong they are willing to risk losing it outright in court.
You should listen carefully to whether your attorney says to settle the case or go to court. It is ultimately your decision, but your car accident attorney’s advice here is critical.
If they say you can’t get more by going to court and could lose, you probably should settle. However, if the attorney says you aren’t being offered enough to settle, you may want to file a personal injury lawsuit.
Also, you may need to file a lawsuit in certain situations:
- The auto insurance company denies your claim.
- Negotiations are stalled and the statute of limitations on the case will expire soon.
- Other factors in the case may indicate that you should file a lawsuit, such as whether you may recover punitive damages.
Even if you file a lawsuit, insurance settlement negotiations may continue. Personal injury lawsuits can be settled at any point up until the jury reads its decision.
Personal Injury Lawsuit Myths
Now that you understand the car accident insurance claim process, below is more information about personal injury lawsuits and claims:
You Don’t Need to File a Claim for a Minor Injury
If you were in a minor car accident, you may think that you don’t need to do anything but file a claim with your insurance company on your own. However, before you settle the claim without an attorney, it is usually better to talk to a car accident lawyer first.
Minor injuries can worsen even if you are slightly injured and think you will be fine. It isn’t unusual for someone with a slight backache after an accident to be unable to walk three days later.
If your minor injury turns into a severe injury and you don’t have an attorney, you can take a settlement for less than you should. Then, you don’t have enough money to cover your additional medical bills and lost earnings.
You Can Save Money Not Hiring a Lawyer
Data shows that insurance adjusters almost always offer more money to people with car accident lawyers. The goal of the adjuster is to minimize their losses. If they see a claimant without an attorney, that is their opportunity to offer a pittance of a settlement with the hopes that you’ll take it.
With a car accident attorney, you will not have as much stress and pressure on you to settle the case. Your car accident attorney will handle all dealings with the insurance company, and you can focus on healing.
Also, dealing with the insurance company on your own means potentially saying something that harms your case. You don’t want to say something that causes the insurance company to blame you and deny the claim.
You Wreck Someone Financially by Suing
Suppose you’re in a car accident as a passenger, and you suffered an injury. You might worry about filing a lawsuit against the driver, a family member, or a close friend. However, you should always consider your health and financial future first, you may need to file a lawsuit.
Besides, just because you file a personal injury lawsuit doesn’t mean the defendant will pay from their bank account. Your friend or family member probably has auto insurance, so their insurance policy usually pays, not them personally.
Speak to a Car Accident Attorney Today
Any car accident is stressful and upsetting, but you can usually handle a minor accident claim alone. However, you could have severe injuries and other damages if the accident is serious.
In this case, you should have an auto accident lawyer review your case today. A car accident attorney knows what your case is worth and how to prove fault so you can get compensation.
They also will know if you can get the most money by settling or taking the case to court. Speak to a personal injury attorney today for more information.