(2022) How long Does a Car insurance claim take to settle ?

How long does a car insurance claim take to settle :-Any kind of insurance is a risk management step you take to recover financial losses due to some uncertain tragedy. Moreover, damage-prone assets like cars not only need to but also have to be protected by a trustworthy insurer.

From bodily injury coverage to theft protection, automobile insurance almost covers every segment of your car under the sun. car insurance claim

But the thing is, sometimes claiming car insurance coverage is such a drag! Not anymore. In this article, we will break down all you need to know to minimize your chance of rejection while claiming your compensation money. So, stay tuned.  

Types of car insurance 

Before diving into the claiming process, let’s discuss all types of automobile insurance so that you can pick the right one accordingly. Basically, there are five types of car insurance in the US market-

  • Liability insurance
  • Comprehensive insurance
  • Zero depreciation insurance
  • Return to invoice insurance
  • Collision insurance.

These five generally define all types of insurance policies, and others are just add ons to follow up.  

Liability insurance: Liability insurance could either be property damage type or bodily injury aka PIP type (personal injury protection).

Property damage policies cover the repairing charges due to the damage caused by your vehicle to other’s property such as another vehicle, building and other utilities.  

On the other hand, bodily injury or PIP back you up with medical expenses.  

There is also auto insurance called uninsured motorist insurance, which falls under liability insurance. It protects if you are hit by another driver who cannot pay. Liability insurance is also known as third party insurance. 

Comprehensive insurance: Comprehensive insurance backs you up with protection against any natural calamities that affect your vehicles, and it also deals with theft protection of your automobile.

There are so many add ons to this insurance, and it is also known as first-party insurance.  

If you’ve been driving vehicles for a while in the united states, then you already knew these two or at least heard about these from agents. These are mandatory in most states, and we also recommend getting you shielded with these two types of insurance.  

Zero depreciation insurance: This insurance comes under comprehensive insurance as an add-on that covers consumable parts’ depreciation value or diminished car value due to the wear and tears action of time.

There is a limitation of time constraint in this insurance policy which varies from state to state. 

Return to invoice: There are scenarios when the damages are so severe that they can’t be undone by repairing and renovating. In that case, RTI insurance is the only way out. 

Collision insurance: There are times when you make a mistake, and you are the victim of it at the same time. Sounds cringe! But this happens, or let’s say, mishappens.

Collision insurance saves your butt from all the damages caused by accidents. If you are purchasing your car with EMIs or a loan, then it’s mandatory to have one collision insurance. 

Read also:- QUICK way to know What is insurance?

How to claim for car insurance (car insurance claim)

People often find it challenging to claim insurance, and itโ€™s because of lack of knowledge & results in nodding your head towards your insurer.

Now when you have the overview of all types of insurance, letโ€™s get straight into the buzz part of the article- claiming process.

Itโ€™s way simpler than you thought; If you keep the documents mentioned below handy and follow up the steps, then itโ€™s a piece of cake. 

There are two ways of insurance settlement- 1. Cashless claim, 2. Reimbursement claim.  

  1. Cashless claim– As the name suggests, cashless claims are those where the insurer partners with an authorized service station and provides repairing and other services under the policy terms. This is a very quick resolution for minor accident claims. 
  2. Reimbursement claim– In this case, the insurer entity will directly disburse the amount to your account as claim settlement.  

Whether itโ€™s cashless or reimbursed, you need to follow some basic steps which are more or less mandatory for any entity in the united states.

First of all, you need to write an e-mail about the mishap to the insurance company and ask for guidance.

After that immediately lodged an FIR regarding the mishap and kept a copy of it. Gather all the proofs and credentials that confirm the incident, such as photos, medical reports, etc.

Then you just need to attach all the docs with the application and mail it. The insurance company scheduled an inspection by the surveyor to verify the claim authentication.

And yeah, thatโ€™s all. If everything goes well, the surveyor sends the feedback to the authority, and within 7 to 14 days, your claim will be settled.  

Documents Required 

Documents may vary according to your claim and the terms of your insurance policy. But there are some mandatory sets of documents to keep handy while claiming any auto insurance coverage. Those are – 

  • Identity proof includes driving license, vehicle registration certificates (RC book), purchasing invoice, etc.  
  • FIR copy if requires. 
  • Copy of the insurance agreement signed by the policyholder & insurer.  
  • Banking information such as passbook 
  • Approx. Estimate of the compensation claim  
  • Medical documents, if requires  
  • Any other credential issued by the insurance company  
  • Filled-up and signed application form attached with a passport-sized photo. 

While arranging all the docs, one pro-tip: give a glance at the terms and conditions of your policy agreement copy for detailed information. 

Factors affecting 

Certain factors cut out the chance of rejection and mobilize your application process, – 

  • First of all, time to report the mishap. It is mandatory to report the accident within 24 to 72 hours. Sometimes people are ignorant about this but failing this may cause rejection. 
  • Keeping proof of the accident and portraying it to the surveyor also affects the insurance coverage processing. 
  • Factors like frequency of the claim, premium charges, and reputation of the insurance entity / financial institution also play an important role while claiming the compensation.  

 How long does it generally take 

If you all the steps mentioned above accordingly and if the surveyor provides you a clean cheat, settling car insurance shouldnโ€™t take more than 30 days from the claim application.

Companies like USAA and State farm are well-known for settling claims within 7 working days. But in case of any complication or anything found suspicious, this can be extended up to six months.  

Top 5 car insurance providers in the US 

Five big names in the US insurance market which are trusted by millions of people across the United States – 

  • USA 
  • State Farm 
  • Nationwide 
  • Farmers 
  • Geico 

If you plan to change your insurer, you definitely can opt for one of these five according to your eligibility & affordability. 

With a valuation of 316.2bn and over 215 million users, the automobile insurance market is booming with an annual growth rate of 2%. But still, it seems that 12.6% of drivers on the roads are uninsured. I think these crazy stats blew your mind as well, hope this blog helps you with your insurance journey.car insurance claim