How to Settle a Car Accident Claim

How to See Your Car Insurance Claim Through to a Successful Settlement

Man and woman looking at damage to a vehicle after an accident
••• Guido Mieth / Getty Images

As an educated driver, you know your rights and responsibilities after being involved in an accident that was not your fault. You know that after an accident, it's important to collect the other driver’s insurance information. Then, you file a personal injury and property damage claim with the other party’s insurance.

The other driver's insurance company will contact you and offer a settlement amount. Sometimes, it can be hard to know if the settlement amount is fair. Often, an insurance company will offer you an amount that you feel is unfairly low, but you may not know the best ways to handle the process of getting that dispute resolved.

Negotiating a settlement with the claims adjuster is never fun, but being informed about the process helps.

Document, Document, Document

As you begin this process, it is essential to document every step. It’s imperative that you get the other driver’s insurance information—otherwise, you won’t be able to file the claim in the first place.

Make sure that you file a police report at the time of the accident. Also, see a doctor and document your injuries. Take photos of any damage to your vehicle. Any documentation you can get is going to be evidence you can use to build your case that the amount you are claiming is fair and just.

Tip

Collecting and documenting the contact information of any witnesses—including law enforcement on the scene—can also help build your case in your favor.

Report and Initiate the Claim

Once you’ve initiated a claim with the at-fault driver’s insurance company, you’ve begun the process. If the other driver is uninsured or underinsured and you have insurance coverage for this scenario, you might need to file the claim with your own insurance company. Call your agent to begin this process.

Open Your Mail

When you file your claim, the insurance company will send you a letter confirming that they received your claim and will soon begin the process of discussing it with you. This letter, called a “reservation of rights” letter, allows them to acknowledge the claim was received without accepting the truthfulness of the claim itself.

At this point, it might make sense to consult an attorney on the next steps.

Take a Deep Breath

No matter how accurately you document the evidence, and no matter how fair you are when making your claim, the insurance company will try to fight its way out of paying the amount you are owed. Just like all businesses, insurance companies are trying to make money, and paying out expensive claims isn't in their best interest.

Of course, it’s nothing personal, especially if you are doing everything right. Negotiating can be a frustrating process, but it's the only way to settle a car accident claim. They may try to argue that the accident was partially or entirely your fault, or that you haven’t provided enough evidence—but don't let it get to you. Just calmly stick to your story and do the best you can.

Negotiation Begins

If you sustained bodily damage (injury) or damage to your property, it's a good idea to send a letter that outlines your medical costs, your out-of-pocket expenses, and any lost income as a result of the accident. The claims adjuster for the insurance company will respond to your assessment with one of their own—or they might send one first.

They will always offer you a lower amount than you think you are owed, but this is a regular part of the process, and you shouldn't take it personally. At this point, you can either accept the insurance company’s offer or continue to negotiate. If you and the insurance company don't reach an agreement, you might need to file a lawsuit, but hopefully, it doesn't come to that.

Always keep in mind that this process requires patience and self-confidence. Filing and settling an auto accident claim is a hassle. Seeing it through to a successful settlement can be time-consuming. At the end of the day, it's worth the time to fight for the money you're owed, but that doesn't mean it will be fun.

Arming yourself with the right information and documentation is half of the battle, but the other half is pure grit—which you are more than capable of providing.

Key Takeaways

  • When you file a claim after a car accident, the other person's insurance company will always offer you a lower amount than you think you are owed
  • They may try to argue that the accident was partially or entirely your fault, or that you haven’t provided enough evidence—but don't let it get to you.
  • Filing and settling an auto accident claim is a hassle. Seeing it through to a successful settlement can be time-consuming, but will be worth it to get the money you're owed.