What happens when you make a claim on your car insurance?
Asked by: Shad Bechtelar | Last update: January 14, 2026Score: 4.2/5 (62 votes)
Does making a claim affect my insurance?
Unfortunately, making a claim is almost always going to lead to an increase in your car insurance premium, although the impact can be a lot less if the accident wasn't your fault.
What is the downside of filing an insurance claim?
It could increase your premiums
When determining your premiums, insurance companies consider your likelihood of filing a future claim — which could cost them money. The higher your perceived risk, the more likely you are to pay more in premiums. Your claims history tends to play a direct role.
What is the next step after making a claim?
Usually a claim is opened and investigation and record gathering is done. You will be contacted and sent letters and maybe asked to give a statement. If it's an auto accident the adjuster will send you a medical release to get your permission to get records. This is needed for evaluation of the bills.
Will your insurance go up if you file a claim?
Insurance claims can cause your insurance rate to increase for a temporary amount of time, typically three to five years.
How Do Car Insurance Claims Work? | Claim Process in a Nutshell!
At what point is it worth claiming on insurance?
You should consider filing a car insurance claim whenever your out-of-pocket costs would extend past your deductible. Reminder: your deductible is the amount you'll pay out of pocket when you file certain claim types, like comprehensive or collision.
How long does insurance stay up after a claim?
In California, most accidents and minor violations stay on your driving record for three years.
How long do I have to fix my car after a claim?
Most insurance companies don't set a strict deadline for when repairs must be completed, but they often require you to file a claim within a specific timeframe after the accident. Once your claim is approved, your coverage for vehicle repair may remain valid indefinitely, but it's a good idea not to delay repairs.
What are the 4 stages of insurance claims?
The insurance claim life cycle has four phases: adjudication, submission, payment, and processing.
Can I keep extra money from an insurance claim?
You may be able to keep excess money as long as you're not violating your provider's rules or committing insurance fraud.
Will my insurance drop me if I file a claim?
Yes, your car insurance company can drop you if you file too many claims.
What should you not say when making an insurance claim?
Don't discuss the specifics of the accident with other drivers, witnesses or passengers. Don't make any oral or written statements as to responsibility or blame. Don't tell others involved in the accident how much liability insurance you carry.
When should you not file a car insurance claim?
“If your damages are minor, you're much better off just paying out of pocket.” Even if the repairs cost slightly more than the deductible, it's still not worth submitting a claim that gets added to your claim history and can negatively affect your premiums in the future.
Is it better to file a claim with your insurance or theirs?
After a car accident, you should notify your insurance company and file a claim, and not deal with the other driver's insurer. Except in rare circumstances, it is not wise to contact them.
What happens to my insurance if I claim?
In general, when you make a claim against your insurance policy above a specific amount due to an incident that is primarily your fault, an insurer will increase your premium by a certain percentage.
Will my insurance probably go down if I make a lot of claims?
The statement "If I make a lot of claims on my insurance, my insurance costs will probably go down" is False. In fact, the opposite is often true: frequent claims generally lead to higher insurance costs. Insurance companies calculate premiums based on risk assessments.
How long does it take an adjuster to look at your car?
Usually, you'll hear from an insurance adjuster within three days of making the claim to discuss matters. If they need to survey the damage, it can be a few more days. If you use a repair garage that is affiliated with (or at least approved by) your insurance company, the process can speed up a bit.
What is the first thing an insurer must investigate before taking on a claim?
Insurance companies must search for and consider evidence that supports coverage for the claim. Thus, insurance companies cannot close their eyes to evidence that supports coverage and focus solely on the evidence that denies coverage. Too narrow a focus of investigation?
How do car insurance companies pay out claims?
Insurance companies can pay out claims on a car in three ways: to you directly, to your lender, or to the auto body shop. If you're involved in a car crash, you probably need money for repairs and transportation right away.
How long do insurance claims stay on your record?
For minor accidents, the record retention period typically spans three years from the date of the accident. Notably, if you were not deemed at fault, it is illegal for insurance companies to increase your premiums in California.
When someone hits you, do you call their insurance?
If the at-fault driver is uninsured or leaves the scene, your own insurance will pay if you have the right coverage. Always call your own insurance company, even if you think the other driver is at fault.
Can insurance drop you after a claim?
If you file claims often your insurer may view you as a greater risk, which may lead them to non-renewing your policy. Insurers may not drop a customer after their first one or two incidents. The first step is often to increase your car insurance rate.
Who gets the insurance check when a car is totaled?
If you own the car without any loans or liens, you will receive a check for the value assessed by the insurance company. If there is a loan, the check usually goes first to the leasing company or the lender. If you owe money on the vehicle, you should notify the lending company that your car has been totaled.