If you’re here because you’ve just been in an accident or are dealing with car damage, you’re probably stressed and wondering what comes next. Filing an auto insurance claim might sound complicated, but it doesn’t have to be. Knowing how the process works, step by step, can help you avoid surprises, protect your rights, and get the payout you deserve. This guide breaks it all down so you can feel more confident moving forward.

What Is an Auto Insurance Claim?

An auto insurance claim is your request for financial help from your insurer after something goes wrong with your car, like an accident, theft, or sudden damage.

Depending on your coverage, it could pay to repair or replace your vehicle, cover medical bills, handle damage to someone else’s property, or even reimburse you for a rental car while yours is in the shop.

While no driver ever hopes to file one, a car insurance claim is the beginning of restoration after everything has gone wrong.

On average, auto insurance claims range between $6,300 per vehicle for damage only and as high as $1.9 million+ when there is a death.

No matter how you look at it, submitting a claim is an important situation no driver wants to find themselves in.

The Auto Insurance Claim Process: Step by Step

Many drivers want to know exactly what happens after they file a claim. Here’s a typical timeline:

1. File Your Claim: Report the accident online, through your insurer’s app, or by phone.
2. Adjuster Contact: An insurance adjuster usually contacts you within 24 to 48 hours. They may ask for photos, police reports, and repair estimates.
3. Damage Appraisal: This can be done in-person, virtually (video call), or with uploaded photos. More complex cases may require an in-person inspection.
4. Estimate & Approval: You typically receive a repair estimate within a few days. If approved, the insurer authorizes payment for repairs.
5. Payment or Check: Depending on your claim, you may get direct payment to the repair shop, a claim check mailed to you, or reimbursement after you pay out-of-pocket.

Who Pays Your Deductible?

You don’t pay your deductible to your insurer. Instead, you pay it directly to the repair shop when the work is completed. If the repair costs are less than your deductible, the insurer pays nothing, and you cover the full bill.

Not-at-Fault Accidents: First-Party vs. Third-Party Claims

If you’re not at fault, you may wonder whether to file with your insurer or the other driver’s. Here’s how it works:

• First-Party Claim: File with your own insurer, who pays for damages and may pursue reimbursement from the other driver’s insurer later (called subrogation).
• Third-Party Claim: File directly with the at-fault driver’s insurer. They’ll assign an adjuster to review your damages.

However, if the other driver is uninsured or their insurer denies liability, your uninsured/underinsured motorist coverage, if you have it, may step in.

When Not to File an Auto Insurance Claim

Not all incidents are worth filing. Filing unnecessary claims can raise your premiums or even lead to non-renewal.

Examples:

• Small dent or scrapes: Don’t file if repairs cost less than your deductible.
• Minor accident you can pay for: A $700 repair with a $500 deductible might increase your rates more than paying out-of-pocket.
• Multiple small claims: Filing several claims in two or three years can make you look “high risk” and hurt renewal chances.

Can You Cancel an Auto Insurance Claim?

Once you file an auto insurance claim, you might wonder if it’s possible to take it back. The short answer: yes, in many cases, you can cancel a claim if it hasn’t been fully processed or paid.

For example, if the repair costs turn out to be lower than your deductible, canceling the claim could save you from a rate increase.

Keep in mind, though, your insurer will still have a record that the claim was opened.

However, even if you cancel, it may still appear on your claims history. That’s why it’s best to double-check repair costs, weigh your options, and talk with your insurance agent before filing in the first place.

What If Your Auto Insurance Claim Is Denied?

It’s a very defeated place to be. Auto insurance claims get denied for many reasons, and when they do, you can feel alone. However, understanding why claims are denied and what you can do about it can help.

Here are common reasons your claim may be denied:

• Policy Exclusions: Intentional damage, illegal activities (like drunk driving), or using your car for ridesharing without the right coverage.
• Lapsed Coverage: Your policy wasn’t active at the time of the accident.
• Missed Deadlines: Failing to notify your insurer or file within the policy’s required timeframe.

Using your vehicle in a legal, defined manner in accordance with your policy, maintaining coverage, and filing immediately after an incident are all great ways to ensure your claim isn’t denied by your carrier.

Can You Dispute a Denied Claim?

Policyholders have the option to dispute a claim when they are denied. If you believe your auto insurance company should take another look, here are the steps you can take:

1. Appeal in writing with additional documentation.
2. Hire a public adjuster if the dispute is over the value of your damages. Public adjusters work for you, not the insurance company.
3. Know the statute of limitations, as each state sets deadlines (often one to three years) for filing auto insurance claims.

Auto Claim Payouts and Checks

If your claim gets approved, the payout can work a few different ways:

• For repair jobs, the check might have both your name and the repair shop’s name on it, so the money goes straight toward fixing the car.
• If your vehicle is totaled and you’re still making payments, your lender’s name will usually be on the check too.
• However, if the payout doesn’t fully cover what you still owe on your loan, you’ll have to pay the difference. That is, unless you have gap insurance, which can cover that shortfall.

What If You File Too Many Auto Insurance Claims?

Insurance companies track your claim history. Yes, it’s important to file when it’s needed. That’s exactly what your auto policy is there for. However, filing too many claims can negatively impact you in the following ways:

• Raise your rates significantly
• Lead to your policy not being renewed
• Make it harder to find affordable coverage in the future

Common Auto Insurance Claim Scenarios at a Glance

Scenario	What Happens	What It Means for You
At-fault accident	Insurer pays after deductible; rates usually increase	Higher premiums for 3–5 years
Not-at-fault accident	Other driver’s insurer pays; your insurer may help coordinate	Rates may not rise, but disputes are possible
Small damage under deductible	You pay entirely out-of-pocket	Claim not worthwhile
Claim denial	Insurer refuses payout for policy violation or lack of proof	You can dispute, appeal, or hire a public adjuster
Total loss with loan balance	Insurer pays car’s value, not what you owe	Gap insurance covers the difference

No Hassle Auto Insurance Claims

Choosing a top-rated insurance carrier can take much of the stress out of filing a claim.

These companies typically offer faster response times, clear guidance, and reliable payouts. Many also provide helpful tools like mobile apps or repair shop networks.

While no claim is hassle-free, a trusted insurer makes the process smoother and less overwhelming.

At Free The Insurance, our mission is clear. We connect drivers in Texas, Missouri, Colorado, and Tennessee with the lowest rate from top-rated carriers, so that people like you can protect themselves for less.

Claims don’t have to be a hassle. Compare auto insurance quotes, shop the best rates, and gain peace of mind by clicking the link or calling us at the number at the top of the page.

Sources:

NSC. Accessed September 2025.