Hello, my name is Jed Strong and I'm the owner and founder of Strong Law. Today I wanted to discuss the basics of an auto accident claim and what you should know if you have been in an accident and have an accident claim. So first off it's important to recognize that each claim is dependent on the state where the accident happens. So the laws are slightly different in each state or each jurisdiction and so you want to make sure that you're following the laws of the state where the accident actually occurred. So if you're on vacation and out of state then it's important to make sure that you follow the laws of the state where the accident actually occurred. And so it's important then if you're talking to an attorney to make sure that the attorney is licensed in the state where the accident occurred because that's obviously where they can only practice law. The so but the basics between the different states are pretty much the same. So first off, the insurance company of the at fault driver is required to compensate an accident victim for the the various losses that they've suffered in a claim. So that would include medical bills both their past medical bills and any future medical bills, lost wages both past and future, and any property damage you know typically damage to a car and then also any pain and suffering both past and future. It's important however to recognize that all of those losses and injuries have to be directly related to the accident. So if somebody is already suffering from chronic back pain and you get in an accident and you suffer more back pain, then the insurance company is required to compensate all of those categories that we listed but only for the areas that are related to the new injury or the aggravation of your pre existing back pain. The insurance company is not required to compensate you for the fact that you had back pain before the accident. So it's it's and that's where many of these cases really come down into the fight is focusing exclusively on what is related to the accident versus what is pre existing or what is caused after the fact by other issues. So the three elements that you really need for an accident claim is one is you have to prove that the other person is at fault for the accident, two is you really do need insurance available to to pay for all of the different expenses and and compensations that are needed for those injuries and losses, and three is you have to be able to prove that the injuries incurred were directly caused by the accident. Now there are a lot of nuances with those those three elements. There's a lot of different laws and procedures that can affect how each of those elements interact, and so it it it can be relatively important to get an attorney, so that way you can make sure that all of those laws and nuances are addressed properly. However, that does not mean that you always need an attorney. I typically recommend that if, if you are going to require at least a month or more of medical care, so if your injuries are serious enough that you need a month or more of medical care, I would I would contact an attorney and have them work on your case. Now that doesn't mean that you have to wait a month before you you talk talk to an attorney and hire an attorney. You can you can tell pretty easily if it's if it's something that's gonna be ongoing or if it's gonna be you know the pain for a weekend and then then it's over, but if it looks like it's gonna be more than a month then I would highly recommend getting an attorney involved. One of the reasons is because every claim in every state has what's called a statute of limitations, meaning that you either have to file a lawsuit or you have to settle your case before that statute of limitations expires. That can be as quick as one hundred and eighty days in some circumstances the longest one I know of is six years, so depending on the circumstances of your case, it can you have a shorter shot clock on when you have to either file that lawsuit or get your case settled. So again, if it looks like you're gonna need more than a month of medical care, then I would highly recommend getting an attorney on board early, because it's much easier to to have it on onboard early. That way the attorney can investigate the claim, get all the facts and everything that's needed to present that lawsuit, rather than if you if you come to to an attorney with only a couple of months left before your statute of limitations. Well quite frankly my firm usually does not take cases where we don't have enough time to properly evaluate the case prior to filing a lawsuit. So it's and I'm sure many other firms operate the same way because it needs to be done properly and in order to do it properly you have to make sure you have that time. So if it looks like you need more than a month of care, go ahead and contact an attorney. But going back to the basics of an auto accident claim, so the at fault insurance company is primarily responsible for compensating the injured victim. Now every insurance policy has what's called a policy limit and so when an individual buys an insurance policy that's a contract or an agreement with an insurance company and the insurance company agrees to pay up to a certain amount of the the compensation that's needed to an accident victim, well many times there are accidents that the injuries are more severe than the the policy limits allow for. So let's say you, you know, get in a serious accident and you have fifty thousand dollars worth of medical bills. Well, many insurance policies are only a twenty five thousand dollars limit. So here the at fault driver only has twenty five thousand dollars of insurance coverage but you have fifty thousand dollars of medical bills that need to be repaid. One of the ways that you can go about making sure that those medical bills get repaid is opening what's called an underinsured motorist claim or a UIM claim. So if you file a lawsuit or I'm sorry if you get in an accident and you settle with the at fault insurance company for their policy limits, so in this example twenty five thousand dollars then you can go to your own insurance company and open a UIM claim or an underinsured motorist claim under your own insurance policy. And again that that claim is limited by whatever limits you purchased when you bought your insurance policy. So, and quite frankly some some people even waive their UIM coverage trying to get a little bit cheaper premium. They waive their UIM coverage which I think is a very foolish decision because there are so many accidents where the at fault party doesn't have enough insurance to cover the injuries. So I recommend that you make sure that you have at least a hundred thousand dollars of UIM coverage on your policy so that way if you do get an accident or the at fault does not have enough insurance to cover your injuries, you have at least a hundred thousand dollars from your own insurance carrier to make sure that you can, get fully compensated to get all those medical bills paid, lost wages, pain and suffering, all of it through the different insurance policies. So that's that's that would be a second step in a UIM claim or I'm sorry in an accident claim. First you go against the at fault driver's insurance, then you can go against your insurance. Another aspect of these accident claims, and it depends on the type of insurance policy that you purchased, but you are in in most states you're able to purchase what's called personal injury protection or PIP coverage, or in some states it's called MedPay, and that's through your own insurance carrier so if you if you have that on your policy, you would want to use that coverage to pay for any of your medical expenses immediately following the accident. I mean some states have really low coverages like Utah for example, I think that the minimum is is three thousand dollars other states have much higher coverages, the minimum in Oregon for example is fifteen thousand dollars but that is a certain amount of money from your own insurance company that goes to paying your primarily your medical expenses immediately following accident. It can also pay for some of your lost wages. So check your policy if you have that PIP or MedPay, you'll use that portion of your policy to pay for your medical expenses at the beginning. And then on the back end of the case, once everything's all resolved with the at fault insurance carrier, they will then reimburse your insurance company, for those those premiums already paid I'm sorry, for those expenses already paid to your your medical bills or lost wages. So that's kind of the, you know, the the running summary of an accident claim. You first go after the insurance company, the at fault driver, and then you look at your own insurance company to see what, different coverages and benefits you have available to you under your policy. So hopefully that, points you in the right direction. Please take a look at our other videos talking about some of these issues, with more specificity and some of the nuances in the different states.
Video overview: Jed Strong explains the main stages of an auto accident claim, including fault, medical treatment, insurance coverage, damages, filing deadlines, and when an attorney may help.
Auto accidents are an unfortunate reality on the road, and understanding how to navigate the claims process can help you recover financially and emotionally after a collision. The steps following an accident can be complex and often overwhelming, but having a clear understanding of the auto accident claim process can help streamline it and ensure your rights are protected. Here, we provide a detailed breakdown of the process, covering essential steps, required documentation, and valuable tips to maximize your claim’s success.
Understanding the Role of Insurance in Auto Accident Claims
When an accident occurs, one of the first actions you should take is to contact your insurance provider. Insurance policies vary widely, but most cover specific damages such as medical expenses, car repairs, and property damage. Your policy type will significantly impact the claim process, as it determines what is covered and how much you might receive.
Types of Coverage
There are various types of auto insurance coverage you should be aware of, as each plays a distinct role in the claims process:
- Liability Coverage: Covers damages to other parties involved if you are found at fault.
- Collision Coverage: Pays for damage to your vehicle, regardless of fault.
- Comprehensive Coverage: Covers non-collision related damage, such as theft or natural disasters.
- Personal Injury Protection (PIP): Covers medical expenses for you and your passengers.
- Uninsured/Underinsured Motorist Coverage: Offers protection if the other driver has insufficient insurance.
Understanding your coverage and the type of claim you are making is crucial in setting realistic expectations.
Immediate Steps to Take After an Auto Accident
Your actions immediately following an accident are critical. Taking the right steps can ensure a smoother claims process and safeguard your right to compensation.
Ensure Safety and Document the Scene
- Move to a Safe Area: If possible, move your vehicle to the side of the road to avoid additional accidents.
- Call Emergency Services: Contact the police, especially if there are injuries or significant property damage. A police report is valuable for claims.
- Document the Scene: Take photographs of vehicle damage, injuries, and road conditions. This evidence is crucial in proving liability.
Collect Information
- Gather contact and insurance details from other drivers involved.
- Obtain witness information, as their statements may support your claim.
- Take note of the police officer’s information and case number.
By collecting this information, you will have a stronger case when filing your claim.
Reporting the Accident to Your Insurance Company
After gathering necessary information, promptly report the accident to your insurance company. Delaying this step could complicate or even jeopardize your claim.
How to Report the Accident
- Contact Your Insurance Provider: Provide them with a detailed account of the accident, including the date, time, location, and names of those involved.
- Submit Documentation: Forward photos, the police report, and witness information to your insurer.
- Complete a Claim Form: Some insurers require specific forms to initiate the claims process.
Why Reporting Quickly is Essential
Most insurance policies have specific timelines for filing a claim, often ranging from 24 hours to several weeks. Missing this window may void your claim.
The Claims Adjuster’s Role
Once your insurance company receives your claim, they will assign a claims adjuster to investigate. This professional evaluates the accident details, estimates damages, and determines the payout.
What the Adjuster Will Do
- Review Documentation: The adjuster examines photos, police reports, medical records, and other relevant documents.
- Interview Involved Parties and Witnesses: The adjuster may contact you and other witnesses to get a clearer understanding of the accident.
- Inspect Vehicle Damage: Some insurers may require an in-person inspection of the vehicle to accurately assess repair costs.
How to Work with Your Claims Adjuster
- Be Honest and Transparent: Provide accurate information about the accident and avoid embellishing or minimizing details.
- Follow Up Regularly: Contact the adjuster periodically to check on the claim’s progress.
Working well with the claims adjuster can significantly impact the outcome of your claim.
Estimating the Cost of Damages and Medical Bills
Estimating the financial impact of an accident can be challenging. Costs may include immediate expenses like vehicle repairs and medical bills, as well as future expenses related to long-term injury or disability.
Calculating Property Damage
- Get Repair Estimates: Obtain multiple quotes from repair shops to ensure accurate cost estimates.
- Evaluate Vehicle Value: If your car is totaled, your insurer will calculate its market value. Research similar vehicles to ensure the amount is fair.
Assessing Medical Expenses
Keep detailed records of all medical costs, including doctor visits, physical therapy, medication, and rehabilitation services. Future treatment costs, if anticipated, should also be included in your claim to avoid out-of-pocket expenses later.
Negotiating a Settlement Offer
After assessing damages, the insurance company will offer a settlement. This initial offer may not always align with your expectations, so it’s wise to negotiate if you feel it’s insufficient.
Steps to Take When Negotiating
- Understand the Value of Your Claim: Review all damages and expenses to determine a fair compensation amount.
- Counter Offer with Evidence: Provide supporting documentation, including repair quotes, medical bills, and pay stubs if you lost income due to the accident.
- Consider Hiring an Attorney: If negotiations stall, a personal injury attorney can help advocate for a better settlement.
Effective negotiation is key to receiving fair compensation for your losses.
When to Consider Legal Assistance
For complex cases, such as those involving severe injuries or disputed liability, hiring a personal injury attorney can be beneficial. Attorneys have experience with claims and can ensure your rights are protected.
Benefits of Hiring an Attorney
- Guidance Through Legal Processes: Attorneys can handle complex paperwork and negotiations.
- Improved Settlement Offers: Legal representation often leads to higher settlement amounts.
- Court Representation: If negotiations fail, an attorney can file a lawsuit and represent you in court.
Consulting an attorney early in the claims process can provide peace of mind and potentially improve the outcome of your claim.
Finalizing the Claim and Receiving Compensation
Once you accept a settlement offer, your insurer will process the payment. This payment may cover medical bills, repair costs, and other agreed-upon damages.
How Payment Works
- Direct to Repair Shops or Medical Providers: Some insurers pay service providers directly, simplifying the process.
- Payment to Policyholder: In other cases, you receive a check or electronic payment directly.
Ensure you review the final settlement documents thoroughly and understand any implications or limitations.
Tips to Expedite Your Auto Accident Claim
The claims process can be lengthy, but there are steps you can take to speed it up:
- Be Proactive: Submit all requested documents promptly and maintain open communication with your insurance adjuster.
- Stay Organized: Keep a file with all accident-related documents and receipts.
- Respond to Requests Quickly: Insurance companies may require additional information as they process your claim. Responding quickly helps prevent delays.
By following these tips, you can expedite the claims process and avoid unnecessary stress.
Navigating the auto accident claim process can be intricate, but understanding these steps will help you manage each stage confidently. If you or a loved one experiences an auto accident, knowing how to file a claim effectively can make all the difference in recovering losses and getting back on the road.
