How do you file an insurance claim?
An insurance claim is a policyholder’s request to their insurance company for coverage or payment for a covered loss or policy event. The insurance company either agrees with the claim or says no. If accepted, the insurance company will pay the insured person or an interested party approved to act on their behalf.
Insurance claims cover many things, from the death payout on a life insurance policy to regular and thorough medical exams. Someone other than the insured can sometimes make a claim on their behalf. But most of the time, only the person(s) named on the insurance can make a claim and get paid.
How to File a Claim for Insurance
Insurance claims that are paid protect policyholders from losing money. A person or group pays premiums as payment for the insurance contract between an insured party and an insurance company. The most common types of insurance claims are for medical supplies and services, property damage, death, responsibility for people who own homes (homeowners, landlords, and renters), and liability for driving a car.
Regarding property and liability insurance, the rate you pay for coverage (usually in the form of monthly payments called insurance fees) is directly related to the number of claims you file. This is true no matter how bad the accident was or who was at fault. The more claims an insured files, the more likely it is that their rates will go up. Sometimes, the insurance company may decide not to cover you because you’ve made too many claims.
If the claim is about damage you did to someone else’s property, your rates will almost certainly go up. Should your rates go up, however, you are not to blame; they might not. For instance, getting hit from behind while parking your car or having the siding on your house blow off during a storm is not the policyholder’s fault.
But things like the number of claims you’ve made in the past, the number of speeding tickets you’ve gotten, the number of natural disasters (earthquakes, hurricanes, and floods) that happen in your area, and even a bad credit score can make your rates go up, even if the most recent claim was for damage you didn’t cause.
Not all cases are the same when it comes to insurance rate hikes. Dog bites, slip-and-fall claims, water damage, and mold can all be signs that insurance will have to pay out in the future. These things will increase your rates and make your insurance less likely to keep covering you. It’s possible that speeding tickets won’t even make your rates go up. Many companies won’t raise your prices after your first speeding ticket. What’s the difference between a minor car accident and a small homeowner’s insurance claim?
How to File an Insurance Claim
Claims for health insurance
Having surgery or staying in the hospital as an inmate is still too expensive for most people. Patients with individual or group health insurance are protected against financial pressures that could otherwise be very bad for their finances. Health insurance claims are made with carriers by providers on behalf of policyholders. Patients don’t have to do much; most medical claims are handled electronically.
When medical providers don’t join in electronic transmissions but charge for covered services, policyholders must file claims on paper. In the end, filing an insurance claim keeps a person from worrying about paying a lot of money because of an illness or accident.
Accidents and Property Claims
A house is usually one of the biggest things a person will buy their whole life. A claim for damage caused by a covered peril is first sent over the Internet to an insurance company official, usually called an agent or claims adjuster.
Unlike health insurance claims, it is the policyholder’s responsibility to report property damage they own. Based on the type of claim, an adjuster looks at the damage to the property and decides how much the cover should be paid. Once the damage has been confirmed, the adjuster starts paying or reimbursing the covered.
Claims for life insurance
A claim form, a death document, and often the original policy must be sent with a life insurance claim. The process, especially for policies with a high face value, may need a thorough check by the insurance company to ensure that the insured person’s death does not fall under a contract exclusion. For example, suicide is usually not covered for the first few years after the policy starts, and so is death caused by a crime.
The process usually takes between 30 and 60 days, unless there are exceptional circumstances. During that time, recipients get the money they need to replace the deceased’s income or pay their final costs.
If you file a claim with your insurance company, your future fees may increase.
Unique Things to Think About
Rate hikes don’t have to follow a strict set of rules. One company will forget what you did, but another will not. Any claim could cause your rates to go up, so knowing your policy is the first thing you should do to protect your money. You can choose whether to file a claim based on how it will affect your rates if you know that your first accident is cleared or that a claim you’ve already filed won’t count against you after a certain number of years.
It’s also a good idea to talk to your agent about the insurance company’s rules before making a claim. Some agents have to tell the company about you even if you discuss a possible claim but decide not to file it. Because of this, you also shouldn’t wait until you need to file a claim to determine your insurance company’s stance on talking to your agent.
No matter your situation, the best way to keep your insurance rates from increasing significantly is to file as few cases as possible. A good rule of thumb is to only claim if you’ve had a considerable loss. If your bumper gets dented or a few boards fall off your roof, you might save money by paying for it yourself.
To file a claim, you must show that your car was destroyed in an accident or that your house’s roof has caved in. Remember that your insurance company can refuse to renew your coverage when your policy ends, even if you have coverage and have paid your payments on time for years.
How do I start a claim with my insurance company?
If you have insurance and have been damaged in a way that is allowed by your policy, you can file a claim by calling your insurance company. You can do this over the phone or, more and more often, online. After you file a claim, the insurance company will ask you for relevant information and may also ask for proof (like photos) or supporting documents. The insurance company may also send an adjuster to talk to you about your claim and decide if it is valid.
Why does making a claim make insurance rates go up?
Filing a claim can sometimes lead to higher insurance rates in the future. However, some insurance companies will forgive the first accident, so this isn’t always true. When you file a claim, your rates will likely increase because the insurance company will see you as a more significant risk than before and raise the cost to reflect that. Some increases may be rolled back if you show that the claim was made without fault. The insurance company may not renew your policy if you file too many claims quickly, no matter the reason.
What if the damage is less than my deductible? Should I still file an insurance claim?
It might not be worth filing a claim with your insurance company if the damage exceeds your deductible. You think the damage is $200, but the deductible is $1,000; it doesn’t make sense. You may still want to file a claim if you think the other person was entirely at fault and want their insurance to pay for your damage. Before you file a claim, you should always talk to your insurance provider.
Conclusion
- An insurance claim is a written request from a policyholder to their insurance company for help or payment for a loss or event covered by their policy.
- If the insurance company checks out the claim, they will pay the insured person or an authorized third party on their account.
- You may have to pay more for property and liability insurance in the future if you file a claim on your car or home insurance.
