Navigating the car insurance claims process can be challenging, whether you’re a seasoned driver or a first-time one. What steps should you follow? What mistakes should you avoid?
Although every company will have a slightly different way of doing things, there are fundamental similarities across the board. In this article, we’ll outline the do’s and don’ts when it comes to handling a car insurance claim, in hopes of making it easier for you to navigate the process and steer clear of the common pitfalls.
What is a Car Insurance Claim?
A car insurance claim is an official request you submit to your insurance company when a covered peril occurs for which you want to be compensated. If approved, car insurance claims are covered by everyone’s monthly premiums, which your insurance company pools together. This pooled fund is then used to cover damages and other costs associated with claims, ensuring that support is available to all insured individuals when needed.
Remember, you can only make a claim for incidents specifically covered under your policy’s terms, such as if you get in a car accident that isn’t your fault and you have the appropriate coverage, like direct compensation property damage.
On the other hand, regular wear and tear, such as a fading paint job or worn-out tires, is considered maintenance and isn’t covered by car insurance in Canada. While insurance can provide much-needed relief in unexpected events like collisions or theft, routine upkeep, and gradual deterioration have always been, and always will be, your responsibility as the owner of the vehicle.
Car Insurance Claims Do’s and Don’ts
Whether you’re preparing to file a claim or are already in the process, understanding the right steps to take and the common mistakes to avoid can make all the difference. As such, below is a list of car insurance claims dos and don’ts that, if followed, can help you manage your claim with greater confidence and success.
| Do’s ✅ | Don’ts ❌ |
| Expect to pay your deductible | Delay calling your insurer |
| Keep records and take photos | Omit or distort information |
| Follow up regularly with your insurer | Move forward with repairs without approval |
| Be prepared for changes to your premium | Forget to review your policy after the claim is finalized |
✅ Do Expect to Pay Your Deductible
To receive compensation for a car insurance claim, you’ll need to pay your deductible first. This is the amount you agreed to cover out-of-pocket when you purchased your policy (it can be found in your policy documents). Your deductible is then subtracted from your total claim payout, so you will receive compensation for the remaining amount, up to the coverage limits of your policy.
❌ Don’t Delay Calling Your Insurer
After you call emergency services, a tow truck, and/or your loved ones, the next call you need to make is to your insurer. Even if you’re anxious or uncertain about the process, resist the urge to put this off. It can unnecessarily complicate the claims process and potentially delay your compensation. By contacting your insurer as soon as safely possible, you’ll get essential information more quickly, understand the next steps, and ensure that your claim is set in motion without unnecessary delays.
✅ Do Keep Records and Take Photos
From the moment an incident occurs, take photos of any damage to your vehicle and keep all receipts and records related to repairs. This is the best possible thing you can do to support your claim, as it provides a clear account of the damages, making it easier for your insurance company to process your claim and for you to handle any potential disputes. It can also help to have pictures of your vehicle from when you first got it to prove its pre-incident condition.
❌ Don’t Omit or Distort Information
Accuracy is crucial when filing a claim. Don’t try to strategically omit information, distort the facts in your favor, or take any supposed “hacks.” This can lead to delays, complications, or claim denials. Beyond that, a dishonest claim can tarnish your insurance record, which future insurers may view as a red flag, making it harder and more expensive for you to obtain the insurance you need. It’s not worth the risk. So instead, be thorough, honest, and factual, and you’ll have done what you can to ensure a smoother claims process.
✅ Do Follow Up Regularly
Your insurer handles numerous claims at once, so their timeline may not always align with yours. To keep your claim on track, it’s essential to maintain proactive communication throughout the process. From the moment you submit your claim until its resolution, regularly follow up with your insurer and keep records of all your interactions. This will help ensure any issues are promptly resolved and that you remain well-informed about the status of your claim.
❌ Don’t Go Ahead With Repairs Before Getting Approval
Avoid starting any repairs on your vehicle until your insurer has given you explicit approval to do so. While it’s understandable that you might want to address the damage quickly, your insurer may have specific requirements or procedures you need to follow to ensure that your repairs are covered and that you receive the compensation you’re entitled to.
✅ Do Be Prepared for Potential Premium Increases
In Ontario and Quebec, car insurance claims can remain on your record for up to six years. Since insurers view claims as indicators of higher risk, your premiums might increase as a result. For instance, a car insurance policy from Economical costs $991 on average for Quebec drivers using YouSet. However, drivers with a claim on their record pay an average of $1,143 annually. Keep in mind that these are average figures, and the actual impact on your premium will largely depend on your claims history and the specifics of each claim.
❌ Don’t Forget to Review Your Policy After a Claim
Having gone through the car insurance claims process, you might have identified areas where your coverage fell short or where you would have liked to have higher limits. While you can’t change the past, now is your chance to make adjustments to your policy and ensure you’re better prepared in case of any future incidents.