Navigating a No-Fault Car Accident Insurance Claim
The time immediately following a car accident is naturally stressful. You’re of course worried about the well-being of you, your vehicle, and anyone else involved, but you’re also probably wondering what comes next.
Whether you have been involved in a minor fender-bender or a major accident with multiple parties, it’s critical you know what steps to take to protect you and your assets. When it comes to no-fault accidents — where each driver turns to their own insurance company to cover their medical expenses and other losses, regardless of fault — there are unique processes you should know as a driver. Here’s a comprehensive guide on how to navigate a no-fault accident insurance claim from start to finish.
What To Do After a Car Accident
While it can be a jarring experience, there are a few immediate steps you should take after a car accident.
- Stop – never leave the scene of an accident. Even if the damage is minor or non-existent, it’s best for all parties involved to wait for the police.
- Move to safety – depending on where the accident occurred on the roadway and the condition of your vehicle, try to get you and your car to a safe location. That probably means the side of the road or a median. If your vehicle is not functioning properly, get yourself to safety before doing anything else.
- Contact authorities – contact law enforcement and emergency services if someone is injured. If the accident is minor, a law enforcement officer might not respond, but the report will at least be filed, which can be helpful for insurance claims.
- Exchange information – speak to all parties involved and exchange contact and insurance information. Be sure to at a minimum gather all:
- Names
- Addresses
- Phone numbers
- Accident location
- Insurance policy details
- Vehicle license plate information
- Document the accident – use your cell phone to take photos and videos of the scene. Be sure to document all damage to both vehicles and any injuries sustained by either driver or passengers.
While optional, receiving medical attention could be a good idea. Even for seemingly minor injuries, it’s important to ensure that not only are you healthy, but that any injuries are documented for insurance purposes. Keep a record of any medical treatments, diagnoses and follow-up visits, as those could become relevant down the road.
Does My Car Insurance Go Up If Someone Hits Me?
There are many factors that go into determining auto insurance rates, especially after an accident. Generally speaking, auto insurance carriers look at the following when making their determinations:
- Severity of the accident
- Claim amount
- Driver’s history
- Fault determination
- Type of coverage
- Changes in risk assessment
- And more
After a no-fault accident, your insurance premiums could increase, but that largely depends on your driving and claims history. If this is your first accident, your premiums aren’t likely to increase. However, if you have an accident or claims history, you will likely pay more for auto insurance. According to the Consumer Federation of America, drivers who have been involved in no-fault accidents see an average premium increase of 10 percent.
The Car Accident Insurance Claim Process
There are slight variations in the car accident insurance claim process, but the typical process goes as follows:
- Notify your insurance provider: Contact your insurance carrier as soon as possible to report the accident. That can even mean while you’re still at the accident scene, which will help get the process moving.
- File a claim: Once you’re in contact with your insurer, it’s time to file a claim. Many carriers have internet- and app-based claims options that make filing and documenting a seamless process.
- Claim investigation: After you have filed, the insurance company will investigate the accident, which usually includes reviewing accident reports, police reports, witness statements, assessing damages, and contacting involved parties.
- Damage assessment: This could be considered part of the claim investigation step, but an insurance adjuster will also want to assess the damage to your vehicle. This can be done in person or via images and videos. They will also want to review any medical expenses that you incurred as a result of the accident.
- Delivery of claim decision and payout: After all relevant information is considered and analyzed, the insurance carrier will determine who is at fault and what amount of money will be covered. The insurer will then issue that payment to you to cover vehicle repairs or medical bills, per the language in your auto policy.
Legal Considerations After a Car Accident
There are only 12 no-fault states: Florida, Massachusetts, New York, New Jersey, Pennsylvania, Kentucky, Kansas, Michigan, Minnesota, North Dakota, Utah, and Utah. The other 38 states are considered at-fault.
In Massachusetts specifically, the no-fault system utilizes Personal Injury Protection (PIP) coverage. PIP coverage is mandatory for all drivers and provides benefits of up to $8,000 regardless of fault, to cover costs including medical expenses, lost wages, and essential services such as household help if the injured person cannot perform these tasks themselves.
Under the no-fault system, injured parties are generally prohibited from suing the at-fault driver for damages unless their medical expenses exceed a certain amount or if specific criteria are met, such as suffering from severe injuries or permanent disfigurement. This threshold, known as the “serious injury threshold,” is an important aspect of Massachusetts’ no-fault system.
More generally speaking, there are some additional legal factors to take into consideration in the days and weeks following a car accident. Not all accidents warrant hiring an attorney, especially a no-fault accident as both parties are utilizing their own insurance for payment. However, if you were injured in an accident or are not at-fault, hiring an attorney soon after the incident is recommended. Conversely, if you are at-fault and other involved parties are injured, it is wise to retain an attorney.
When lawyers and/or law enforcement get involved, they will want to gather evidence to make a determination. The good news is that the information you gather for claims purposes — witness statements, photos, accident reports, surveillance videos, and more — can all be used. You will also want to keep a record of any and all communication between involved parties, as that can be used in future legal proceedings.
Navigating the Repair Process
The repair process following a car accident — both no-fault and at-fault — is pretty similar regardless of insurance carrier. Following the filing of your claim and the acceptance of that claim, you will likely experience the following:
- Choose a repair shop: Depending on your policy and insurance carrier policy, you will either be able to choose any repair shop or one from your insurance carrier’s approved list. Some insurance companies have their own network of approved repair shops, which may limit your options, but your carrier will have previous experience working with that shop, which can help the process along.
- Estimate of repairs and adjuster review: Once you’ve found a repair shop, they will assess the damage and provide an estimate of the total cost of repair. Your insurance adjuster will review this estimate to ensure they align. Once both parties sign off, the repair shop will be authorized to make repairs. It’s helpful to know that your insurance carrier and the shop will communicate directly about this, giving you one less thing to worry about.
- Repairs completed and final inspection: After they get the go-ahead for the insurance adjuster, the repair shop will perform the necessary repairs. The timeline for repairs will largely depend on the extent of the damage and the parts required to complete the work. After it is completed, the shop usually performs an inspection before they allow you to take the vehicle on the road.
- Payment issued: The insurance company will pay the repair shop directly for the repairs completed, or reimburse you if you paid upfront out of pocket. If there is a deductible as part of your policy, you will be responsible for that amount.
FAQs
Q: What do I do after a car accident?
A: Don’t panic after a car accident. The first and most important thing is to make sure you, your passengers, and anyone else involved is safe and unharmed. If people need medical attention, that is the first priority.
After those aspects are taken care of, you should exchange information with the involved parties. That includes names, addresses, phone numbers, insurance policy details, and license plate numbers. Next, you should document everything you can from the scene via photo and video. Take pictures of damage to all vehicles and the area surrounding the accident scene. It’s also wise to document any visible injuries sustained in the accident. After all information is collected and you are in a safe location, you should contact your car insurance carrier to get the claims process started.
Q: How do I file a car accident insurance claim?
A: Contact your car insurance carrier to file a claim. This can be done over the phone or via your carrier’s website or mobile app.
Q: Does my insurance go up if someone hits me?
A: If you are deemed to not be at fault for an accident, it is very unlikely that your car insurance costs will go up. The insurance carrier will review the accident and consider your driving and claims history to make a final determination.
Q: In a no-fault accident, who pays?
A: In a no-fault accident, each driver turns to their own insurance company to cover their vehicle repair costs, medical expenses and other losses, regardless of fault.
Dealing with the aftermath of an auto accident can feel overwhelming, but with the right partner, it doesn’t have to be. When you work with an experienced car insurance agent, they will be there with you every step of the way. Their expertise will provide the resources and guidance you need to navigate the process smoothly.
