A lot of car accident cases are settled through a claim with the insurance company (your insurer or the other driver’s). You file a claim and the insurance company will review it, assess the damages and then make a compensation offer. If accepted, you will receive the settlement amount and the case is closed.
However, it’s not always as simple as it seems.
If you do not accept the compensation offer of the insurance company or there’s a dispute as to who’s responsible for the accident, it could result in a lawsuit.
Deadline for Filing a Car Insurance Claim
The deadline is not the same for all car accident insurance claims. It will vary depending on certain factors.
1. Your insurance policy
Make sure to submit the claim within the time limit set by your insurance provider. Most policies would give you a window of time (30 to 60 days on average) for vehicle damage claims.
2. Your state’s mandatory time limit
Statutes of limitations usually range from 1 to 10 years for reporting car insurance claims. However, while you might have the choice to delay filing a claim, it’s not necessarily advisable. Waiting too long could prompt the insurance company to conduct a more thorough investigation and cast doubt on your account. So in order to minimize the chance of denial, you should file your claim as soon as possible.
A Closer Look at Statute of Limitations
Each state has its own statute of limitations. Basically, this is a law that outlines the time limit for parties involved in a dispute to initiate legal proceedings. For car accident claims, you have anywhere from several months to several years, depending on the state where the incident took place.
Alabama, Alaska, Arizona and Connecticut, for example, have a 2-year time limit for both property damage claims and injury claims. California’s time limit is 3 years for property damage claims and 2 years for injury claims. Florida and Georgia’s limit for property damage claims is 4 years, however, for injury claims, Georgia has a 2-year limit while the Sunshine State retains its 4-year limit.
Exceptions to the Statute of Limitations
While car accident victims generally need to file a claim within the statute of limitations, there are exceptions to this rule such as:
-If a government entity or employee is at fault, special rules usually apply – including a shorter statute of limitations.
-In states with Dram Shop Laws, victims can sue establishments that serve alcohol to intoxicated individuals in DUI crashes which could possibly result in a shorter time limit for filing claims.
-There are also instances when the statute of limitations is “tolled,” which basically means the time limit starts at the accident but doesn’t immediately begin counting down. For example, when the victim is a minor, the statute of limitations usually starts when they reach adulthood. So if a crash victim was injured at age 15 in Wisconsin, they would have 6 years after turning 18 to file a claim.
Start the Insurance Claim Process Right Away
After a car accident, it’s best to begin the insurance claim process right away due to several reasons:
- The evidence will be easier to gather.
- Witnesses will still have fresh memory of what happened.
- Those involved will be able to remember the details of the incident clearly.
Besides, the sooner you file a claim, the sooner you’ll receive the settlement. On the other hand, if you delay filing the claim, you may pass the statute of limitations for a lawsuit or your insurer may deny your claim, on the grounds that the waiting time may have prejudiced the case.
Where to File Your Insurance Claim
There are 2 types of insurance policy claims – first-party and third-party. First-party claims are claims you file with your own insurance company. Often, you will use this option if you caused the accident while driving your own car.
The latter (third-party) is filed with the insurance provider of the other party involved in the accident. For example, if you were hit by a car while crossing the street, you will need to file a third-party claim with the driver’s insurance company. The same is also true if you were driving your vehicle and got involved in a car accident that someone else caused.
The type of claim you file depends on:
-Who was at fault in the accident
-The nature of the accident
-The insurance coverage available
At-Fault vs. No-Fault States
Before filing an insurance claim, you also need to check whether your state is a no-fault state or not. If you live in a no-fault state, you need to go through your own insurance provider for minor injury claims regardless of who was responsible for the accident. Typically, your Personal Injury Protection coverage (no-fault coverage) is around $10,000 to $25,000 and this will pay for lost wages and medical bills.Medical treatment aims to diagnose, alleviate, or cure illnesses using medication, surgery, therapy, or other interventions for improved health.
On the other hand, at-fault states will let you make a third party claim against the at-fault driver’s insurance policy so you can get compensation even for minor accidents.
Filing Your Insurance Claim
When filing your car accident claim, here are the things you need to do:
1. Know the time limit you have based on your insurance policy and the state’s statute of limitations.
2. Contact your insurance provider. Do this even if you are filing a claim against the at-fault driver’s insurance policy as your insurer may be able to offer assistance.
3. Provide evidence like photos, police report, witness statements, etc.
4. Allow the insurance company to review your claim and assign an insurance adjuster to your case.
5. Wait for the settlement offer. After completing their assessment, the insurance adjuster will contact you to make a settlement offer. You can then decide whether to accept the offer or not.
You aren’t legally required to have a lawyer for a car accident claim. You can avoid lawyer fees when you settle the matter yourself, which may be ok for straightforward claims with minimal expenses and injuries.
But if you don’t have the time to go through the tedious process yourself or if you find it overwhelming, you can always change your mind and contact a car accident attorney.