Taking the Headache Out of Your Auto Accident Claim

We all have to have some level of car insurance. When (or if) the time comes to file a claim on your policy, having even a little knowledge about the claims process can save you time and money. The process doesn't have to be riddled with hassle as many people may come to expect. I am an insurance claims representative with 8 years of experience; I have seen my fair share of misunderstandings of what filing a claim is really all about. Being armed with just a few pieces of information, you can make your claims process a lot faster, easier and possibly unnecessary!

So what should you do when you have an accident?

Assuming everyone is OK and not injured, here are four things everyone should do:

1. Assess the damage.

Take a look at your car and, if applicable, the other person's car. Is it still drivable? Does the car have damage greater than a small dent or scratch? If there are no other vehicles involved, no other damaged property and your car is drivable, your best bet is to drive the car back home or to a safe location. Take a closer look at the damage and consider whether or not this accident is reportable.

For example, if your only damage is a broken headlight and you have a collision deductible of $500, you do not need to file a claim with your insurance. A headlight replacement will be well under $500 in most, if not all vehicles. Since you are responsible for the deductible amount anyway, why file the claim? In fact, if you do file a claim you are giving your insurance company a reason to raise your premium. So now your $100 (or less) headlight replacement may potentially end up costing you several hundreds of dollars in increased policy premium upon your policy renewal.

2. Call the police.

Anytime there is another party involved, it is always a good idea to call the police, regardless of the damage. By having a neutral third party present to document the damage and help you to exchange information, you can possibly spare yourself the headache of having an argument about the incident and resulting damage. Your insurance company also will rely on a police report to help them make a liability decision. I have had many clients call me with nightmare stories that started out as a fender-bender and escalated into something more by the time the other party talked to a few friends and decided later on that they should try to cash in on your insurance. We like to think people have good intentions, but that is not a guarantee.

There are a few instances where police may not come to take your report. Examples include having an accident on private property (i.e. a parking lot) or in a larger city, when there are no injuries and both cars are still drivable. There are some exceptions however and most of the time it all depends on what the local police department's standards are, so it never hurts to try.

3. Exchange information.

When you are left on your own to exchange information, there are a few essential pieces of information to obtain. You need the following:

The other driver's name & address
The vehicle owner's name & address (if different from the driver)
The vehicle license plate #, year, make and model
The vehicle insurance company name and policy number.

Failing to obtain these minimum pieces of information can slow down the progress of your claim, whether it is with your insurance company or the other person's. If you are filing your claim directly with the other person's insurance, they will need to identify the correct policy and vehicle before they can process your claim. They will also need to verify the accident information with their policy holder before they will pay out on any claim. Obtaining this information is most important in those situations where a police report is not available.

TIPS:
1). If your cellular phone has a camera, take pictures to document the damage. This can be an invaluable tool for you and your insurance company later!
2). Keep an index card in your glove box that has all of your exchange information written down. This will save you time at the accident scene and ensure you have provided all of the necessary information and asked for the same.

4. Go home and file your claim.

Whether you are claiming your damages with your own insurance company or the other party's insurance, if you can drive home first, please do so! Calling from the scene of the accident does little to assist you or your insurance company, as there is often a lot of activity and confusion immediately after an accident. If you need emergency assistance, call 911. It is exponentially easier to help you get the claim started when you are at home and able to think clearly. Never call to file a claim from the middle of the highway somewhere, an Emergency Room (cell phones are not allowed there anyway)....and most of all, not while you are driving!

Sources:
www.insurance.com