Your insurer investigates the accident, determines fault, and then either pays for repairs or denies the claim based on your policy terms
After you report an accident to your insurance company, they assign a claims adjuster to your case. That adjuster will contact you, ask for details about what happened, and request photos, a police report if one exists, and contact information for any other drivers or witnesses. The adjuster may also inspect your vehicle to assess the damage. During this time, your insurer is working to establish who caused the accident — this is called determining fault.
Once the investigation is complete, your insurer will either approve your claim and authorize repairs, or deny it. If approved, you'll pay your deductible (the amount you chose when you bought the policy), and your insurer covers the rest, up to your policy limits. If denied, you pay for all repairs yourself. The whole process typically takes two to six weeks, though complex accidents can take longer.
Key Takeaways
- Your deductible is the amount you pay out of pocket for repairs; your insurer covers the rest if the claim is approved.
- The claims adjuster investigates to determine fault, which decides whether your insurer pays and whether your rates may increase.
- If you were not at fault, the other driver's insurer may pay instead, and you may not have to pay your deductible.
- Your rates typically increase after an at-fault accident, but the amount and duration of the increase varies by insurer and your driving history.
- You can request a second opinion if you disagree with the adjuster's damage assessment or the claim decision.
How the claims adjuster determines fault
The adjuster reviews the police report, your account of the accident, statements from other drivers and witnesses, photos of vehicle damage, and sometimes traffic camera footage. They also check local traffic laws to see who violated them. In some states, fault is determined by comparing the actions of both drivers; in others, one driver is found fully at fault or both share responsibility.
Fault matters because it determines whether your claim is paid. If you are found at fault, your insurer pays (minus your deductible), but your rates will likely increase. If the other driver is found at fault, their insurer should pay for your repairs, and you typically do not pay a deductible. If both drivers share fault, the process depends on your state's laws and your specific policy.
What happens if you are found at fault
Your insurer will pay for your vehicle repairs (after you pay your deductible) and for any liability claims from the other driver — meaning medical bills, lost wages, or damage to their vehicle if your policy includes liability coverage. Your rates will increase, usually for three to five years, though the exact amount and duration depends on your insurer and your prior driving record. Some insurers offer accident forgiveness programs that waive the rate increase if it is your first accident in a set number of years, but you typically have to pay extra for this coverage when you buy your policy.
You can also file a claim with your collision or comprehensive coverage (if you have it) to repair your own vehicle, but you will still pay your deductible and your rates will still increase. The advantage is that you do not have to wait for the other driver's insurer to accept fault.
What happens if the other driver is at fault
You should report the accident to your own insurer and provide them with the other driver's insurance information, police report, and any photos or witness statements. Your insurer may then contact the other driver's insurer to recover costs — this is called subrogation. You typically do not pay your deductible in this scenario, though some policies require you to pay it upfront and get reimbursed later.
Your rates should not increase if you are found not at fault, though this varies by state and insurer. Some states prohibit rate increases for not-at-fault accidents; others allow it. Ask your insurer whether a not-at-fault claim will affect your rates. If the other driver is uninsured or underinsured, you may need to file a claim under your own uninsured or underinsured motorist coverage, which does have a deductible and may affect your rates.
Repair options and how they affect your claim
Once your claim is approved, you can choose where to have your vehicle repaired. You can use your insurer's preferred repair shop, an independent mechanic, or a dealership. Your insurer may require an estimate from their preferred shop, but they cannot force you to use it. If you choose a more expensive shop, you may have to pay the difference out of pocket.
Some insurers offer rental car coverage as part of your policy, which pays for a rental vehicle while yours is being repaired. This coverage has a daily limit (often $30 to $50 per day) and a total limit. If you do not have rental coverage, you pay for the rental yourself, though you can sometimes recover this cost if the other driver is found at fault and their insurer agrees to pay.
Disputing the adjuster's decision or damage assessment
If you disagree with the adjuster's assessment of your vehicle's damage or the amount they are offering to pay, you can request a second opinion. You can hire an independent appraiser to inspect your vehicle and provide their own estimate. If the independent appraisal differs significantly from your insurer's, you can submit it to your insurer and ask them to reconsider.
If your insurer denies your claim entirely and you believe the decision is wrong, you can file a complaint with your state's insurance commissioner or department of insurance. You can also consult a personal injury attorney if the accident caused injuries or if the claim denial seems unreasonable. Many attorneys offer free consultations and work on contingency, meaning they take a percentage of any settlement rather than charging upfront fees.
How accidents affect your insurance rates and history
An at-fault accident stays on your driving record and your insurance record for three to seven years, depending on your state and insurer. During this time, your rates will be higher than they would have been without the accident. The increase is usually 20 to 40 percent, though it varies widely by insurer, your location, and the severity of the accident.
Some insurers offer accident forgiveness, which means your first at-fault accident in a certain period (often five to seven years) will not increase your rates. You typically pay extra for this coverage when you purchase your policy. Other insurers offer safe driver discounts that reward you for going a certain number of years without an accident, which can offset some of the rate increase over time.
Frequently Asked Questions
Do I have to report the accident to my insurer even if I am not planning to file a claim?
Yes. Most policies require you to report accidents within a set time frame, usually 24 to 72 hours. Failing to report can give your insurer grounds to deny a claim later. Even if you plan to pay for repairs yourself, reporting protects you in case the other driver files a claim against you.
What if the other driver does not have insurance?
If you have uninsured motorist coverage, your insurer will pay for your repairs (minus your deductible) and any medical bills. If you do not have this coverage, you will have to pay for repairs yourself or pursue a lawsuit against the other driver, though collecting money from an uninsured driver is often difficult. Uninsured motorist coverage is required in most states.
Can my insurer drop me after an accident?
Your insurer can choose not to renew your policy after an accident, but they cannot cancel it mid-term in most states. They must wait until your renewal date. If your insurer does not renew, you can shop for coverage from other insurers, though you may pay higher rates due to the accident on your record.
How long does it take to get paid after my claim is approved?
Once your claim is approved and repairs are complete, payment typically arrives within one to two weeks. If your insurer is paying the repair shop directly, the shop receives payment and you only pay your deductible. If you paid for repairs upfront, submit your receipts and the insurer will reimburse you.
Will my rates go down after a few years without another accident?
Yes, most insurers gradually lower your rates as time passes without an accident. The accident's impact on your rates decreases each year and usually disappears entirely after three to seven years. Some insurers offer accident forgiveness or safe driver discounts that speed up this process.