A claim is a request for an insurer to pay for a covered loss. You can claim under your own policy, against the other driver's policy, or both. The steps above are the outline; below are the details that most often cause confusion.
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Your insurer or theirs?
| Topic | Your own insurer | The other driver's insurer |
|---|---|---|
| Coverage used | Your collision, comprehensive, uninsured motorist, PIP or MedPay | Their liability coverage |
| Your deductible | Applies to collision and comprehensive | Does not apply once they accept fault |
| Good to know | If the other driver was at fault, your insurer may recover its costs from them and may refund your deductible | They typically pay only after accepting that their driver was at fault |
If fault is unclear or the other insurer is slow to respond, using your own collision coverage can get repairs started sooner. You pay your deductible up front, and your insurer may seek repayment later, a process called subrogation.
Your part of the process
Most policies ask you to give prompt notice, cooperate with the investigation, send along any legal papers you receive, let the insurer inspect the car before repairs and take reasonable steps to protect it from further damage. That duty to cooperate is owed to your own insurer. The other driver's insurer may ask for a recorded statement, but you usually are not required to give one; if anyone was injured, consider talking with an attorney first.
Estimates, repairs and parts
In many states you have the right to choose your repair shop. Your insurer may recommend shops in its network, and some insurers back those repairs with a guarantee. Shops often find hidden damage once work begins; they send a supplement to the insurer for approval, which is normal. Ask which parts the estimate assumes: new original manufacturer parts, aftermarket parts or used parts, depending on your policy and state rules.
How the deductible works
For collision and comprehensive claims, your deductible comes off the payment. For example, if covered repairs cost $3,000 and your deductible is $500, the insurer pays $2,500 and you cover the other $500. Payment may go to you, straight to the shop, or jointly to you and your lender if the car is financed or leased. The Deductible Calculator helps you choose a deductible you could comfortably pay.
If the car is a total loss
Insurers declare a total loss when repairs would cost too much compared with the car's value. Each state sets its own rule, often a percentage of the car's value or a formula. The settlement is usually the car's actual cash value, meaning what it was worth just before the crash, minus your deductible. Value is based on similar vehicles sold in your area, adjusted for mileage, condition and options.
- Ask for the valuation report and check details such as trim level and mileage.
- If the offer looks low, send records of recent work and upgrades, plus listings for comparable cars.
- If you have a loan, the lender is paid first. Gap coverage, if you carry it, can pay the difference when you owe more than the car is worth.
- Some states require the settlement to include sales tax and title fees, so ask how yours was calculated.
- You may be able to keep the car for a lower payout, usually with a salvage title. Rules vary by state.
How Car Depreciation Affects Your Coverage explains how a car's falling value changes what collision, comprehensive and gap coverage are worth.
A rental car while you wait
Rental reimbursement coverage pays for a rental after a covered claim, up to a daily limit and a maximum total. If the other driver was at fault, their insurer may owe you a comparable rental for a reasonable repair period. Ask early about the daily limit, the number of days and whether the rental company can bill the insurer directly. Rental coverage typically ends when repairs are finished or, after a total loss, shortly after the insurer makes its settlement offer.
If you disagree with the insurer
- Ask for the decision in writing, including the policy language it relies on.
- Send more evidence, such as an independent estimate, photos, repair records or comparable listings.
- Ask for a supervisor or claims manager to review the file.
- Consider the appraisal clause. Many policies let either side demand appraisal when you agree the loss is covered but disagree on the amount. Each side hires an appraiser, the two choose an umpire, and a decision agreed by any two of them sets the amount. You usually pay your own appraiser and share the umpire's cost. Check your policy for the exact terms.
- Contact your state insurance department. Every state has an insurance regulator that accepts consumer complaints about claim handling, such as long delays or denials without a clear reason.
For serious injuries or a large denied claim, a licensed attorney in your state can explain your options. Before you sign a release or accept a final injury settlement, make sure you understand it, because a signed release usually ends the claim.