Accidents happen. When they do, understanding the auto insurance claims process can feel overwhelming. It’s hard to stay level-headed when something unforeseen happens, let alone remember exactly how to make an insurance claim and how the process works.

It’s important to know how making a claim works and what to expect in the unfortunate scenario where you do have to make a claim, especially as this can be a stressful situation to be in. Sometimes, claims are preventable. Other times, they aren’t. This is when you’ll thank yourself for having purchased insurance.

This guide simplifies the steps involved, ensuring a smoother recovery.

Auto Insurance Claims Process

When you report a claim (either to your broker or directly to your insurance company), an insurance adjuster should call you within the following 2-4 hours to ask about all the details of the incident. What happens next?

1. After calling your insurance company, you will be asked to go to a recommended auto body shop to receive an estimate of the damages. If you prefer a different body shop, your insurer will need to send an appraiser to inspect your vehicle and estimate damages.

2. Your vehicle gets repaired – if you have rental coverage you can use a rental vehicle while your car is being repaired.

3. However, if your vehicle is a write-off, your insurance company will determine an “Actual Cash Value” of your vehicle at the time the loss occurred and send you an offer accordingly. Generally, most providers will allow you to use a rental vehicle for up to three days following the offer. If you have purchased a waiver of depreciation endorsement, you may have your claim settled at the actual purchase price of the vehicle and any equipment inside, by the cost of replacing the vehicle with an identical one that is equipped similarly, or by the manufacturer’s suggested market value on the same date as your car was purchased. Generally, your insurer will choose the lowest of these options.

4. Note: if the loss was due to car theft, an insurer will typically wait between 7-30 days to see if your vehicle can be recovered. If unrecovered, your vehicle’s value will be determined as described above. If it is recovered, the damages as a result of theft will be covered by your policy.

Navigating the claims process can be stressful, but with the right knowledge, you can get back on the road quickly. A-Kan Insurance is here to guide you every step of the way. Contact us for expert advice and support.

Talk to our expert broker about your insurance needs today!