To deal with insurance companies after a car accident, report the crash to your own insurer promptly, collect evidence at the scene, stick to facts and do not guess about fault, keep a written record of every call, add up every loss before responding to an offer, and ask for a written explanation of any decision. If the insurer will not resolve a dispute, your state insurance department can help.
Key Takeaways
- Call the claims number on your proof-of-insurance card as soon as possible; the National Association of Insurance Commissioners (NAIC) advises reporting promptly and cooperating with the adjuster.
- You are not obligated to accept a payment you believe is unfair, and you can ask the adjuster to explain every decision in writing.
- Who pays depends on your state: 12 states plus Puerto Rico use no-fault auto insurance, according to the Insurance Information Institute (Triple-I).
- Fault rules matter: Alabama, Maryland, North Carolina and Virginia still use contributory negligence, which can bar recovery if you were even partly at fault.
- Lawsuit deadlines are set by state law; in California, for example, an injury lawsuit must generally be filed within two years.
Car accidents can be life-altering experiences. They can lead to physical injuries, emotional trauma, and financial burdens. Knowing your rights and navigating the insurance claims process is essential when dealing with insurance companies after an accident.
In this blog post, we’ll discuss some tips on how to deal with insurance companies after a car accident and when it makes sense to get help from an accident attorney. The guide also covers how the claims process works, which rules decide who pays, the claim-handling standards insurers must follow, and what to do if you disagree with an offer.
Never accept their first payout offer
Insurance companies are businesses, and they are concerned with their bottom line. They will often try to settle quickly with the lowest payout possible. If you accept their first payout offer, you may be leaving money on the table. An accident attorney has experience working with insurance companies and can help you receive a fair settlement.
Choose your words carefully and never admit fault
Do not admit fault, and do not apologize for the accident. Insurance companies will try to shift the blame onto you to reduce liability. Don’t say, for example, “He came out of nowhere” or “I only looked down for a second.” Anything you say to the insurance adjuster can be used against you later.
Don’t accept any deal that won’t cover all of your expenses and losses
Insurance companies often offer a settlement that doesn’t fully cover your expenses and losses. Before accepting any offer, calculate the total cost of your car repairs, lost wages, medical treatment expenses resulting from the accident, etc. An accident attorney can help you calculate the actual cost of your damages and ensure you receive a fair settlement.
Don’t underestimate the value of your claim
If you have been injured in a car accident, you may be entitled to more compensation than you think. When calculating your settlement offer, the insurance company may not consider non-economic damages, such as pain and suffering. An accident attorney can help you assess the total value of your claim and ensure you receive fair compensation.
Add up the cost of your car repairs, lost wages, medical treatment expenses resulting from the accident, etc. An accident attorney can also help you assess other costs, such as probable future medical bills, loss of earnings due to your inability to work, and any non-economic damages. They will be familiar with your state’s laws and can ensure that all your rights are protected.
Dealing with insurance companies after a car accident can be incredibly stressful and overwhelming. An accident attorney can navigate the complicated claims process, negotiate with the insurance company, and fight for your rights. An attorney can also ensure you receive the total compensation you are entitled to.
In conclusion: How can an accident attorney help you deal with Insurance companies after a car accident?
Dealing with insurance companies after a car accident can be a complicated and confusing process. However, by following these tips and seeking the help of an accident attorney, you can ensure that your rights are protected and that you receive fair compensation for your injuries and losses.
Do not let the pressure of a quick offer decide the outcome. Document every loss, get the insurer’s reasoning in writing, and, if the claim involves injuries, disputed fault or a denial, consider consulting a licensed accident attorney in your state before you sign a settlement release.
How Does the Car Insurance Claims Process Work?
The car insurance claims process runs from the accident scene to a settlement payment. The NAIC, the organization of US state insurance regulators, sets out the core steps in its consumer guide to filing an auto claim:
- Put safety first. Call 911 if anyone is injured, and move the car out of traffic only if it is safe to do so.
- Collect information at the scene. Record the other driver’s name, address and insurance company details from their proof-of-insurance card; the make, model, year and license plate of each vehicle; witness names and contact details; and the responding officer’s name and badge number.
- Document the scene. Note the time, date, location and road or weather conditions, and take photos or sketch a diagram.
- Get the police report number. Ask where the full accident report can be obtained. The NAIC advises calling the police for a hit-and-run or a stolen vehicle.
- Report the claim. Call the number on your proof-of-insurance card as soon as possible; many insurers also accept claims through a smartphone app.
- Work with the adjuster. An adjuster inspects the damage and decides what the insurer will pay. Cooperate, keep notes of every conversation and its date, and ask for written explanations of decisions.
Getting prompt medical care also matters for the claim, because medical records link injuries to the crash. See why medical treatment after a crash matters for your injury claim.
First-Party vs Third-Party Claims: Who Pays?
A first-party claim is a claim against your own insurance policy; a third-party claim is a claim against the at-fault driver’s liability insurance. Which one applies depends on the coverage you carry, your state’s fault rules and who caused the accident.
| Claim type | Who you claim from | Typical coverage | What to keep in mind |
|---|---|---|---|
| First-party | Your own insurer | Collision, comprehensive, personal injury protection (PIP), uninsured/underinsured motorist | Your deductible usually applies, and you are expected to cooperate with the investigation. |
| Third-party | The at-fault driver’s insurer | Bodily injury liability and property damage liability | That insurer represents its own policyholder, not you, and fault will be investigated. |
| No-fault (PIP) | Your own insurer, regardless of fault | Medical costs and some other injury-related losses, up to state limits | You can sue outside the no-fault system only if the injury passes your state’s threshold. |
If you are sued after an accident, the NAIC notes that your insurer has a duty to provide a lawyer to represent you and to pay covered damages up to your policy limit, so notify the company right away if you receive a summons or notice of a lawsuit.
Which States Have No-Fault Car Insurance?
No-fault car insurance means each driver’s own policy pays for their injury costs, through personal injury protection, without first proving who caused the crash. According to the Insurance Information Institute, 12 states and Puerto Rico have no-fault laws: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah.
- Verbal threshold states (Florida, Michigan, New Jersey, New York, Pennsylvania) allow a lawsuit only for serious injuries described in words, such as death or significant disfigurement.
- Monetary threshold states (Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, Utah) allow a lawsuit once medical bills pass a set dollar amount.
- Choice no-fault states (New Jersey, Pennsylvania, Kentucky) let drivers reject the lawsuit threshold and keep the right to sue for any auto-related injury.
In the other states, the at-fault driver’s liability insurance is generally responsible for the other party’s damages, which makes the fault investigation central to the claim.
Does Fault Affect How Much You Can Recover?
Fault directly affects a car accident settlement because most states reduce compensation by the injured person’s own share of blame. This is why the advice above about not admitting fault matters: statements to an adjuster can be used to assign you a higher percentage.
- Pure comparative negligence: you recover damages minus your share of fault, so a person 90% to blame could still recover 10% of their losses.
- Modified comparative negligence (50% rule): you recover only if your fault is not greater than the other party’s.
- Modified comparative negligence (51% rule): you recover only if your fault is not as great as the other party’s.
- Contributory negligence: any fault on your part can bar recovery entirely. Alabama, Maryland, North Carolina and Virginia still follow this older rule.
What Are Your Rights When an Insurer Handles a Claim?
Insurers must follow state claim-handling laws, many of which are based on the NAIC’s Unfair Claims Settlement Practices Act (Model 900), adopted in June 1990. Under that model, the following count as unfair claims practices:
- Knowingly misrepresenting relevant facts or policy provisions about the coverage at issue.
- Failing to acknowledge claim communications with reasonable promptness.
- Not attempting in good faith to reach a prompt, fair and equitable settlement once liability has become reasonably clear.
- Compelling policyholders to sue by offering substantially less than they ultimately recover in court.
- Refusing to pay claims without a reasonable investigation.
- Failing to affirm or deny coverage within a reasonable time after completing the investigation.
- Failing to promptly give a reasonable, accurate explanation for a denial or a compromise offer.
- Failing to provide claim forms within 15 calendar days of a request.
Each state adopts its own version with its own deadlines, and the model act is enforced by the state insurance commissioner. The model itself does not create a private right to sue, so the exact rules and remedies depend on the state where the policy was issued.
How Much Are Typical Car Insurance Claims?
Average claim sizes help you judge whether an offer is in a realistic range, although every claim depends on its own facts. The Insurance Information Institute publishes these national averages from ISO, a Verisk business, for 2024:
| Coverage | What it pays for | Average claim (2024) |
|---|---|---|
| Bodily injury liability | Injuries you cause to others | $28,278 |
| Property damage liability | Damage you cause to others’ property | $6,770 |
| Collision | Damage to your own car in a crash | $5,489 |
| Comprehensive | Theft, weather, fire and other non-collision damage | $2,306 |
The same data shows claims becoming less frequent but more expensive: bodily injury claims fell from 0.89 to 0.80 per 100 insured car years between 2015 and 2024, and collision claims fell from 6.01 to 4.16, while average claim amounts rose across the categories. The bodily injury figures exclude Massachusetts and most no-fault states.
What Should You Say to an Insurance Adjuster?
When speaking to an insurance adjuster, give the facts you know and avoid opinions, guesses and apologies. A practical checklist:
- Do give the date, time, location, vehicles involved and the police report number.
- Do say you do not know yet about injuries or repair costs that have not been assessed, rather than guessing.
- Do write down the adjuster’s name, the claim number, the date of each call and what was agreed, and confirm key points by email.
- Don’t speculate about who was to blame; let the evidence, police report and witnesses establish fault.
- Don’t sign a release or accept a final payment until you know the full extent of your injuries and costs, because a signed release normally ends the claim.
How Do You Dispute a Low Settlement Offer?
A low settlement offer is best challenged with evidence rather than argument. The NAIC’s guidance points to these steps:
- Ask for the reasoning in writing. Request a written explanation of how the insurer valued the claim.
- Bring your own numbers. Total repair estimates, medical bills, lost wages and other receipts, and present them in one organized summary.
- Involve your repair shop. The NAIC suggests having your repair shop meet with you and the adjuster when you disagree about damage.
- Check for an appraisal clause. The NAIC advises checking whether your policy has an appraisal clause for disputes over the amount of a loss.
- Contact your state insurance department. If the disagreement continues, consumer services staff at your state insurance department can help; the NAIC says every state insurance department has staff available to answer auto insurance questions.
Some disputes take months to resolve. For why timelines vary, see why some car accident cases take much longer to settle, and for what a settlement typically looks like, read practical outcomes of settlement claims after a car accident.
What Deadlines Apply After a Car Accident?
Two kinds of deadlines matter after a car accident: the notice requirement in your insurance policy and the statute of limitations for a lawsuit.
- Policy notice: auto policies expect prompt notice of an accident. Check your policy wording and report the crash as soon as you safely can.
- Statute of limitations: each state sets its own time limit for filing an injury lawsuit. In California, for example, Code of Civil Procedure section 335.1 allows two years for an action for injury caused by the wrongful act or neglect of another. Other states set different limits, and special rules can apply to claims against government bodies or involving minors.
Negotiating with an insurer does not by itself stop the lawsuit clock, so confirm your state’s deadline early if the claim involves injuries.
When Is an Accident Attorney Worth Considering?
An accident attorney is most often considered when a claim involves significant injuries, disputed fault, a denied claim or a lawsuit. Minor property-damage-only claims are often handled directly with the insurer using the steps above.
Personal injury attorneys in the US usually work on a contingency fee, meaning they are paid a percentage of any recovery rather than an hourly rate. A typical contingency fee is 33 to 45 percent of the recovery, so the fee reduces your net payment. Ask for the fee percentage, who pays case costs, and whether the fee changes if the case goes to trial, and get the agreement in writing.
For help choosing, see these tips for selecting a personal injury attorney. For broader advice on buying, maintaining and insuring a vehicle, see the car owner’s guide.
Common Mistakes to Avoid
- Leaving the scene without the other driver’s insurance details or a police report number.
- Waiting to report the accident to your own insurer.
- Guessing about fault or injuries in early conversations with an adjuster.
- Accepting a first offer before medical treatment is complete and all bills are in.
- Relying on phone calls without written confirmation of what was agreed.
- Missing your state’s statute of limitations while negotiating.
Frequently Asked Questions
Should I accept the insurance company’s first offer after a car accident?
You are not obligated to accept the insurance company’s first offer. The NAIC notes that consumers do not have to accept payments they believe are unfair. Compare the offer against your documented repair costs, medical bills and lost wages, and ask for a written explanation of how it was calculated.
Do I have to talk to the other driver’s insurance company?
The other driver’s insurance company represents its own policyholder, not you. Report the accident to your own insurer and cooperate with it. With the other driver’s insurer, keep to basic facts, avoid discussing fault, and consider getting advice before giving a detailed statement if you were injured.
What if the insurance company denies my claim?
If an insurance company denies a car accident claim, ask for the reason in writing; state rules based on the NAIC model treat failing to give a reasonable explanation of a denial as an unfair claims practice. You can then submit more evidence, use an appraisal clause if your policy has one, contact your state insurance department, or consult an attorney.
How long does a car insurance claim take?
How long a car insurance claim takes depends on its complexity: a simple property-damage claim can move quickly, while injury claims often take longer because the full cost of treatment must be known. State claim-handling laws require insurers to act within reasonable time frames, and some states set specific day limits.
Can I still recover money if I was partly at fault?
In most states you can still recover money if you were partly at fault, with the payment reduced by your share of blame. In Alabama, Maryland, North Carolina and Virginia, which use contributory negligence, any fault on your part can bar recovery.
