What Is a Car Insurance Claim?

Last Updated on December 27, 2025

A car insurance claim is how you ask your insurer to pay for covered damage or injuries after something happens to your vehicle. In plain English: you’re using your car insurance policy the way it was designed to work.

Some claims are straightforward (a crash, a stolen car, hail damage). Others are less obvious, like a low-speed parking lot bump where the other driver later alleges injuries. Knowing when to file—and what filing actually triggers—can help you avoid surprises.

Key Takeaways

• A car insurance claim is a formal request for your insurer to pay for covered vehicle damage, injuries, or liability under your policy.
• Claims can be first-party (your repairs/injuries) or third-party (someone else claims you caused damage or injuries).
• Filing makes the most sense when there are injuries, major damage, theft/hit-and-run, or fault may be disputed—small repairs near your deductible may be cheaper to pay out of pocket.
• A claim can affect your rates depending on fault, severity, and claim history, so document the incident well and understand your coverage before choosing a path.

What Is a Car Insurance Claim?

A car insurance claim is a formal request for coverage benefits under your auto policy. Depending on what happened, a claim can pay for vehicle repairs, medical bills, replacement costs (if the car is totaled), and/or damage you caused to someone else.

Claims generally fall into two buckets: (1) you’re asking your insurer to pay for your losses (a first-party claim), or (2) someone else is asking your insurer to pay for damage you allegedly caused (a third-party liability claim).

Types of Car Insurance Claims

First-Party Claims (Damage or Injuries to You)

These are claims you file under your own policy for your own vehicle or injuries. Common examples include:

• Collision claims (damage from a crash with another vehicle or object), typically handled under collision coverage.
• Comprehensive claims (non-collision damage) like vandalism, hail damage, theft, animal strikes, or fire damage.
• Injury claims under coverages like Medical Payments (MedPay) or PIP (where available), which can help pay medical bills regardless of fault.

Third-Party Liability Claims (Damage or Injuries You Caused)

If another person claims you caused an accident, they may file against your policy (or you may report the incident and your insurer will handle the demand). These claims are paid under liability coverages, including bodily injury liability coverage and property damage liability.

When Should You File a Claim?

You generally want to file (or at least report) a claim quickly when:

• Anyone is injured (even if injuries seem minor at first).
• There’s significant damage, a potential total loss, or your car isn’t drivable.
• There’s theft, a hit-and-run, or major vandalism.
• You think the other driver may dispute fault or the story seems likely to change.

For smaller incidents, it depends. If the repair cost is close to (or below) your deductible, filing might not help much. For example, if someone keyed your car, a small repair might cost only a few hundred dollars, and you’d still pay the deductible before insurance contributes.

Your deductible is what you pay out of pocket on many first-party claims before your insurer pays. Many drivers choose deductibles like $500 or $1,000—here’s a full breakdown of how car insurance deductibles work.

If you’re on the fence, this guide on whether you should make a claim after a car accident can help you weigh the tradeoffs.

Should You Report an Incident Even If You Don’t Plan to File?

Sometimes, yes. Many policies require prompt notice of an accident or incident that could lead to a claim. Reporting doesn’t always mean you’re “committed” to payment—often it just creates a record and claim number in case the situation grows (especially if injuries appear later or fault becomes disputed).

This is especially true when fault is unclear, like in many parking lot accidents. Having an early report can protect you if the other driver changes their story or files a claim weeks later.

How to File a Car Insurance Claim

Most insurers make filing easy by phone, online, or through an app. The basic steps look like this:

1. Make the scene safe. Call 911 for injuries or if police are needed. Move vehicles out of traffic if it’s safe and legal to do so.
2. Document everything. Take photos/video of damage, license plates, the roadway, and any injuries. Get names, contact info, and witness statements if possible.
3. Contact your insurer. Provide the date/time/location, what happened, vehicles involved, and any police report details. Here’s a helpful step-by-step overview from the Insurance Information Institute on how to file an auto insurance claim.
4. Work with the adjuster. Your insurer may request more photos, an inspection, recorded statements, or repair estimates. Keep notes of who you speak with and when.
5. Choose repairs and handle the deductible. If it’s a first-party claim, you typically pay the deductible and the insurer pays the rest of the covered amount (up to your limits). If the car is totaled, you’ll usually go through a valuation and settlement process instead of repairs.
6. Save receipts. Keep towing, rental, medical, and repair receipts. If your policy covers rental reimbursement or roadside/towing, documentation matters.

How Long Does a Car Insurance Claim Take?

It depends on complexity. A simple glass or bumper claim might move quickly, while multi-car crashes, unclear liability, injuries, or total-loss valuations can take longer. The fastest way to avoid delays is to respond quickly to requests, submit documents promptly, and keep a paper trail.

Will Filing a Claim Increase Your Insurance Rates?

A claim can affect your premium, especially if you’re found at fault, there are injuries, or you have multiple claims in a short period. Even some not-at-fault claims may impact pricing depending on state rules and the insurer’s underwriting practices.

Insurers also evaluate your claim history. For example, auto claims can appear in specialty databases used in underwriting. If you want to understand what’s being reported, the CFPB explains the LexisNexis C.L.U.E. system and how it’s used for insurance decisions here: LexisNexis C.L.U.E. & Telematics OnDemand.

If you’re concerned about premium impact, focus on controllables: raising your deductible (if it fits your budget), shopping around at renewal, and using proven ways to save on auto insurance. It also helps to understand what typically makes auto insurance more expensive so you can avoid common pitfalls.

Tips to Make the Claims Process Smoother

• Don’t delay. Report accidents promptly—even if you’re unsure whether you’ll pursue payment.
• Be careful with “cash deals.” If you settle privately, get everything in writing and understand that injuries and hidden damage can surface later.
• Be factual, not speculative. Stick to what you know. Let insurers and investigators determine fault.
• Keep documentation organized. Photos, estimates, receipts, medical bills, and communications can prevent delays.
• Know what coverage applies. Comprehensive vs. collision vs. liability vs. MedPay/PIP can change what’s paid and when.

If you’re unsure whether a claim is worth it, call your insurer or agent to talk through your options. Asking questions doesn’t automatically mean you’ll be charged a deductible or forced to proceed—it’s simply the first step to understanding your coverage.

FAQs on Car Insurance Claims