What Happens When Someone Files a Claim Against Your Car Insurance

When someone files a claim against your car insurance, they are asking your insurer to pay for damage or injuries they say you caused. Your insurer will contact you for your side of the story, investigate the accident, and decide how much of the fault is yours. If it finds you responsible, your liability coverage pays the other person's valid costs up to your policy limits. You don't pay a deductible on that liability claim, but you do have duties to report and cooperate, and an at-fault finding can affect your premium at renewal.

Step one: your insurer gets in touch

A claim against you usually starts when the other driver, or their insurance company, contacts your insurer. Either way, your policy expects you to report accidents promptly and help with the investigation. The Texas Department of Insurance tells drivers to tell their company about an accident as soon as possible, and notes that most companies have deadlines for filing claims. California's Department of Insurance lists cooperating with the insurance adjusters and investigators among its key tips after an accident.

Step two: the investigation and the fault decision

California's insurance department describes what happens after a claim is reported: the company will contact you for detailed information, may take a written or recorded statement, and may also contact other drivers and witnesses. In some cases an examination under oath can be requested.

The goal is to decide who was responsible and by how much. California's guide points out that in many accidents both drivers share the fault, and that the police, the insurance companies, or the courts decide each driver's share. To help your insurer reach an accurate answer, give it what you have:

• Photos of the vehicles, the damage, and the scene, including traffic signals and road conditions
• Names and contact details of witnesses
• The police report number, or a copy of the report once it is filed
• Any dashcam footage, repair estimates, or messages you received from the other party
• A clear, factual account of what happened, without guessing about things you didn't see

Step three: your liability coverage pays, up to your limits

If your insurer concludes you were at fault, it pays the other party from your liability coverage. The Texas Department of Insurance explains that liability insurance pays to repair or replace the other driver's car or other damaged property, and pays other people's medical expenses when you're at fault. California's guide adds that liability coverage does not pay for injuries to you or the people in your household.

You don't pay a deductible when your insurer pays someone else under your liability coverage. Texas lists collision, comprehensive, and uninsured or underinsured motorist claims as the ones that carry a deductible, and California's glossary says only comprehensive and collision coverage have deductibles. Those deductibles apply when your own car is being repaired. If you also file a collision claim for your own car after the same accident, that part will have a deductible.

What if the claim is bigger than your limits?

Every liability policy has a ceiling. California's insurance department says the limit is the total the insurer will pay for a single accident or claim and that it will not pay costs above the limits. If you cause an accident that costs more than your liability limit, California says you will be responsible for the damage beyond the limits you bought. Texas gives the same warning: if your liability coverage isn't enough, you might have to pay the rest yourself, and the other driver could sue you. If a claim looks likely to exceed your limits, ask your insurer to keep you informed, and consider talking to your own attorney.

Don't negotiate with the other driver yourself

Once a claim is open, let your insurer deal with the claimant. California's regulator advises drivers not to sign statements about fault or promise to pay for the other party's damages. If the other driver or their insurer calls you directly, you can politely refer them to your claim number and adjuster.

If you disagree with the fault decision

Ask your insurer to explain, in writing, how it reached its fault decision and what evidence it relied on. If you have evidence it didn't consider, such as a witness or video, send it in. Washington's Office of the Insurance Commissioner says policyholders can expect a timely and clear explanation of a coverage decision, and that you can file a complaint with the office if you have concerns about how a claim is handled. The Texas Department of Insurance also accepts written complaints, but it notes that it can't decide who was at fault in an accident.

If someone claims you hit them and you didn't

Sometimes a claim names you for an accident you weren't involved in, or describes damage that doesn't match what happened. Report it to your insurer right away and give it any proof of where you and your car were. Don't contact the claimant to argue about it. California's insurance department describes staged accidents and paper accidents, which exist only on claim forms, as known fraud schemes. Warning signs it lists include injuries that seem excessive compared to vehicle damage, prior damage to the other vehicle, and passengers or witnesses who weren't actually there. You can also report suspected fraud to the National Insurance Crime Bureau. Utah's Insurance Department notes that reports to the bureau can be made anonymously.

Will your premium go up?

It can, depending on the outcome. The Texas Department of Insurance says auto insurers can raise your premium if you've had accidents or traffic tickets, but they cannot charge you more for claims they didn't pay. California sets its own rule: its insurance department says that if an accident is not your fault, your insurer does not charge you more, but if you are at least 51% at fault, your premium can go up when you renew. Other states have their own rules, so check with your state's insurance department.

If you get sued

If the other party files a lawsuit instead of, or after, a claim, notify your insurer immediately. California's insurance department advises sending the original court papers to your insurer, keeping a copy for yourself, and not discussing the accident with anyone except a verified representative of your company. It also says that if the lawsuit arises out of a covered loss, your company will provide a legal defense.

The bottom line

A claim against your car insurance is mainly your insurer's job to handle, but you still have a part to play. Report the accident promptly, cooperate with the investigation, share your evidence, and leave negotiations with the claimant to your insurer. Your liability coverage pays valid claims up to your limits without a deductible. If you disagree with the result, ask for an explanation and contact your state's insurance department if needed.