What To Do When Making A Car Insurance Claim (2024)

There are a number of situations where filing a claim is highly recommended:

• You cause major damage to your or another person’s vehicle – this may also depend on the type of at-fault accident.
• An injury happens as a result of an accident.
• You suspect insurance fraud. Something is not right about the situation with the other driver.

Your claim will generally fall under one of three categories. They are third party liability, collision insurance and comprehensive insurance.

When not to file a claim

Making a claim is an important decision. It can affect your record, car insurance rates and have a financial impact. Starting a claim should be a priority if your vehicle has major damage. But, it’s a minor car accident or smaller damage when you should think twice.

Here are some situations where you may not want to file:

• The damage may only be slightly more than your car insurance deductible.
• You have the funds to pay for the damage.
• You only cause minor damage.
• You caused the damage yourself. For example, you backed into a tree on your driveway.

In these situations, it may not make sense financially to file a claim because it could go on your record. An increase in rates could cost you more money long term than paying for the repairs yourself.

Here is a look at the general steps for filing a claim for a collision:

1. Report the auto accident (if applicable to your situation).
2. Contact your insurer.
3. Provide them with details about the incident.
4. Answer questions from your adjuster.
5. Get an estimate for the vehicle damage and repairs.
6. Choose an auto shop and schedule repairs.
7. Close the claim.

When you file a claim, you will be assigned an adjuster. Your adjuster will be your go-to contact person and assist you during the process. Once your claim is reviewed, your adjuster will explain your coverage and how it works in relation to your claim.

Your insurer will pay to have your vehicle repaired (in most cases). You will be responsible for paying your deductible. This amount will vary based on your policy. Your provider may waive it for at-fault accident damage.

Once your vehicle receives the necessary repairs, you will get it back, and your insurer will close the claim. The collision will then be recorded. If you were at fault, the claim will impact your rates in the future.

Filing a car insurance claim can be a reasonably quick process. Many insurers have a guarantee to get your claim started within 30 minutes or 1 hour of your call. The initial call with your adjuster can take 15 minutes to 1 hour, depending on the incident.

How long it takes to settle is a different story. Some can be rectified very quickly – in a matter of weeks. Others take longer to close. How long it takes to settle depends on the claim's type and details.

When submitting a claim, the time limit in Ontario is not a hard deadline. It’s recommended you file it as soon as possible, within seven days is ideal. Failing to report within a reasonable time frame could result in your claim being denied.

There are a number of reasons your claim could be investigated. Your insurer may suspect fraud, believe you have provided false information or investigate the degree of fault among the parties involved.

There are situations where your insurer refuses to pay your claim. The most common situations include:

• Your provided misleading claims information.
• There was an unauthorized driver behind the wheel.
• You were using your personal vehicle for business purposes.
• You broke the law.
• You are behind in your payments.
• You don’t have the proper insurance in place or driving without insurance.

Does your auto policy increase if you make a claim?

The details of the claim and your policy features will determine if there is an increase. If you are not at fault and have accident forgiveness, your premium will not increase, but if you receive an Ontario driving conviction, the outcome could be different and cause an increase.

Can I cancel an open auto insurance claim?

Yes. Insurers will generally allow you to cancel an open claim. However, your ability to cancel will depend on how far you are along in the process. As long as you haven’t already been compensated, you should be able to cancel. If you’ve already started a claim, it will stay on your driving record, even if you withdraw.

How does a total loss claim work?

A total loss insurance claim works similarly to any other car accident claim. Report the accident to your insurer, have the damage assessed, and if the vehicle is deemed a total loss, you will receive a cash settlement for the car's value.

Is it worth claiming on car insurance for a dent?

It depends on the cost of the claim. It may or may not be worth it. For example, if the repair cost is $1,200 and you have a $1,000 deductible, the insurer would only cover $200. You are likely better off paying out of pocket to avoid it going on your record.

How many auto insurance claims per year can I have?

Keeping the number of claims on your record to a minimum is important. You can file a claim multiple times yearly, but it could affect rates. Insurers could also choose not to renew your policy.