What Happens When You File an Insurance Claim?
What Happens When You File an Insurance Claim?
In insurance, you pay a fixed premium in exchange for financial cover against losses that may happen to you. When the loss occurs, you file an insurance claim.
Insurers review your claim and, if it meets the terms of the policy, release payment. The funds can help you pay medical bills, act as income replacements and provide relief to your family in times of economic distress.
Damages
When you suffer a loss for which you have filed an insurance claim, you are entitled to receive compensation under the terms of your policy. That compensation includes both direct costs such as medical bills and indirect costs such as pain and suffering, inconvenience or emotional distress.
Depending on your losses and the type of insurance, you may also be entitled to receive compensation for economic damages. That includes the costs of any repair or replacement of property damaged by an accident.
These expenses are included in your insurance policy, and can be clearly calculated according to your insurance policy’s language. If your car was damaged in an accident, the insurance company will typically pay you a certain percentage of the vehicle’s pre-accident value. If the repairs exceed that percentage, the insurance company may declare the vehicle a total loss.
Injuries
Insurance companies want to avoid paying out on claims for which they aren’t fully insured, so they typically require extensive proof that you have suffered an injury. They may ask to see your medical records, examine your injuries and even take photos of you with your injuries.
The most important thing to know is that you should file an insurance claim as soon as possible after a accident, even if you aren’t at fault. The longer you wait, the more likely your insurer is to deny your claim or try to negotiate a settlement with you that may be less than you deserve.
The best way to determine if your damages are covered is to contact your insurer and request a copy of your policy. It is also a good idea to speak with a personal injury lawyer to find out what your rights are and what steps you should take next. The most important thing is to follow the insurance company’s instructions carefully and to never make false or misleading statements.
Disputes
Sometimes, a dispute can arise with an insurance company over their treatment of your claim. These disagreements can be over payment amounts, disputed bills, or claims that are not being processed correctly.
Disputes can occur in almost any type of insurance policy, such as health, life, dental, workers’ compensation, car, homeowners’ insurance and more. Regardless of the reason for your dispute, you can take steps to resolve it in a fair and reasonable way.
The first step is to talk to your insurer and explain your dispute. Be polite and calm, but remain focused on your goal: getting a better settlement for you.
In some cases, the insurance company may agree to mediation. During this process, the insurance company’s representatives will meet with you and your lawyer in a neutral space to discuss the situation. Mediation is a fast, nonbinding process that can be effective in some circumstances, but it is not always the best way to resolve a dispute.
Settlements
If you’ve been injured in a car accident or another type of collision, you can file an insurance claim. This can help you receive compensation for your damages, including medical bills and lost wages.
Often, these claims are settled without going to court. This is because it’s almost always in the best interest of the insurance company to settle out of court rather than fight a lawsuit.
Insurers calculate settlement amounts using formulas based on the specific terms of your policy. This includes the policy’s coverage limits, plus the deductible you paid out of pocket.
The insurance adjuster then reviews your case and sends out a settlement offer. Typically, these offers are very low.