Auto Insurance Articles

Filing Car Insurance Claims: 3 Hypothetical Situations

By: Kade Phillips, contributing writer at Kanetix.com.


Filing Car Insurance Claims: 3 Hypothetical Situations

Every auto accident is unique. Some involve multiple drivers while others are single-car events. Some cause extensive property damage while others result only in damage to the vehicles involved. Many collisions cause injury to drivers, passengers, and pedestrians while some allow everyone to walk away unscathed. The process by which you file a claim with your car insurance company is influenced by the particulars of the accident.

Below, we'll describe three accident-related situations and explain what to do when filing the associated claims with your auto insurer. The following scenarios are common and have caused confusion among many drivers. If you're prepared in advance, the claims process is more likely to be painless and trouble-free.

Situation #1 - Uninsured/Underinsured Motorist At Fault And You Lack Uninsured Coverage

Suppose a motorist hits you while you are stopped at a red traffic light. He is clearly at fault. Unfortunately, he lacks auto insurance while you lack uninsured motorist coverage. In this scenario, there is very little you can do to ensure you receive compensation for injury or damage to your vehicle.

First, contact your car insurance company and submit a claim for any damage under your collision coverage. You'll need to pay the deductible before your coverage takes effect, but you can ask the other motorist to reimburse you. If you lack collision on your policy, ask the at-fault driver to cover the cost of damages. If he refuses, your only alternative is to seek recompense through the courts.

Keep in mind that many provinces follow a strict no-fault auto insurance system. While you may be able to sue for losses that exceed no-fault benefits, each province maintains their own limits.

Situation #2 - Single Car With Vehicle Damage

Suppose you're driving in inclement weather. The road's surface is slippery. While making a left turn, your vehicle slides into a rail on the side of the road and sustains damage. In this scenario, you can file a claim for the cost of repairing the damage under your collision coverage (if you have this coverage on your policy).

You should also file an accident report with the police. The officer on site will consider the circumstances under which the accident occurred, and reflect his or her findings on the report. Your auto insurer will take this report into account when deciding whether you were responsible for the event. If they determine you were not at fault, your car insurance rates will likely remain the same.

Situation #3 - Vehicle Damage While Absent With No Note Left

Suppose you visit a local grocery store and leave your car in the parking lot. You return to your vehicle and find a large gash has been left in one of the doors. There is no note on your windshield, so you have no way of contacting the person responsible. In this scenario, you'll need to decide whether filing a claim with your auto insurer is the best option.

If you have filed multiple claims in the recent past, there's a good chance your car insurance rates will rise. Also, consider your deductible in light of the likelihood of an increase in premiums. For example, if repairing the gash in your door costs $800 and your deductible is $750, you might want to pay for the repairs out of your own pocket. Otherwise, you'll risk a rise in your auto insurance rates just to save $50 (after paying your deductible).

There are many other auto-accident scenarios that befuddle drivers and complicate the claims process. Some involve accepting cash from at-fault drivers on the scene of the collision; others involve disability, pain and suffering, and death benefits under a no-fault insurance system. As noted earlier, each province treats these areas differently.

Ideally, you'll never need to file a claim for damages or bodily injuries resulting from an auto accident. That said, be prepared. Review your policy to make sure you're covered, paying particular attention to your collision coverage.

If your policy is nearing its expiration, invest the time to compare car insurance rates online. That's the most effective way to uncover the best package for your personal circumstances.

Take a few minutes to compare your car insurance options. You could find a cheap car insurance rate in less than 5 minutes through Kanetix.

Disclaimer - The above description/explanation is intended as a guideline only, and is not to be interpreted as a recommendation to buy or sell any insurance products, or to provide legal or financial advice of any kind. Also, Kanetix Ltd. does not warrant or assume any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed.

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