If someone is involved in an accident, how does insurance claim work? If the accident requires you to file a claim, then your insurance company will investigate, negotiate, and settle the claim on your behalf.
"When you first purchase an insurance policy, you are given a number of documents," explains Clark Jackson, President and CEO of Jackson and Jackson Insurance Agents and Brokers in Glendora, California. "One of these is a proof of insurance card. This card should be kept with you at all times. I recommend keeping one in your glove box and the other one in your wallet or purse. You should also have a card that tells you what you need to do in the case of an accident. It is very important to follow the instructions that are printed on the back."
It's also a helpful tip to purchase one of those instant cameras that are sold in drugstores and keep it in your glove box. Not only will this allow you to make a visual record of what happened but, on those occasions when someone tries to flee the scene without exchanging insurance information, you might be able to snap a shot of the car and driver.
"In cases where there is a collision between two vehicles,and especially if one or both of the vehicles are immobilized or if there is some sort of a physical injury,the first call should always be to 9-1-1," advises Jackson. "Remember that when there is an accident you have two responsibilities, the first one is to the law and the second one is to your insurance company. You need to be aware of your duties to both. Even if the damage seems minor, you still need to accurately document exactly what happened."
If the accident requires you to file a claim, then your insurance company will investigate, negotiate, and settle the claim on your behalf. "This is why it is important to closely follow the instructions the insurance company provides for what to do immediately following an accident," Jackson says. "An insurance company's investigation will include determining who is at fault for the accident and the amount of compensation necessary to make the person not at fault 'whole'. The minimum insurance requirements in most states cover your liability to the other driver and a minimum amount of property damage coverage to repair damage to the other party's property. Consequently, if you are at fault, you may not have the insurance necessary to compensate you for the damage done to your vehicle or your medical expenses. That is why it is important to be careful about the coverages you purchase at the outset."
The first issue is, "Who is at fault?" "This determination," Jackson explains, "will be made by evaluating statements that you made when you reported the accident to your insurance company, the police report regarding the accident, and statements from the other party to the accident, the passengers in the vehicle, and any witnesses who saw what happened." A physical inspection of your vehicle and the other vehicle by an assigned claims adjuster will also likely take place. Again, the photos you take with your camera at the actual scene could prove useful if, for instance, the other party claims additional damages after you have both already left the premises.
The other issue to be determined is, "What damages are insured?" Jackson points out that this will require an evaluation of the types of insurance coverage you and the other drivers respectively have, as well as whether the damages fall within a deductible you may have selected when purchasing your policy. "There are many areas of insurance coverage that may apply in an accident. That, in part, has to do with what you have purchased for insurance coverage or the coverage of the person who was at fault for the accident. In fact, you may find that the person who caused the accident has no insurance at all or not enough insurance or assets to make good on the injuries you may have suffered or the damage to your car or other property."
