Jul 23, 2021 4 min read

The average person is involved in an automobile claim every 18 years. While some people have more than their share of claims, if you begin driving at 17 you should expect to be involved in several claims in your lifetime. Understanding the claim process will make your experience less stressful.

Automobile insurance is regulated by the state. My explanation will be based on Pennsylvania law. When traveling in another state your insurance should provide the necessary coverage to comply with that state’s laws.

When involved in a vehicle accident the first step is to address injuries. If someone is hurt, get them medical attention. The first $5,000 in medical bills in Pennsylvania are paid by your insurance company for you and any passenger in your vehicle that is not covered by another automobile insurance policy.

Always attempt to report the accident to the police, but do not be surprised if police do not respond if no one is injured. It is not reasonable to expect the police to respond to every vehicle incident.

If your vehicle is not drivable, have it towed to a repair facility. If you do not know where you want your vehicle to be repaired, ask the towing company to store it until you make a decision.

If more than one vehicle is involved in the accident gather and share information: who owns the vehicles, who was driving, who were the passengers, the year, make and model of the vehicles, insurers and contact numbers. If there are any witnesses to the accident, get their names, addresses and contact numbers. Most major insurance companies have mobile apps for your phone that you can use to not only gather this information but to begin the claim process. If you do not have a mobile app write down the information and then contact your insurance company, taking care to provide as much detail as possible.

If there was only one vehicle involved, the process is fairly simple. Your insurance company will be responsible for any damage you may have caused to someone else’s property. Then your insurance company will be responsible for the damage to your vehicle, less your deductible, provided you have purchased collision coverage. You may also be entitled to a replacement vehicle while yours is getting repaired if you have purchased rental reimbursement coverage.

It gets complicated when more than one vehicle is involved. Who is responsible for the accident must be determined. Claims adjusters are licensed individuals with training in determining responsibility. They rely on police reports, witness statements and at times use accident recreation specialists. Remember your insurance company’s first responsibility is to protect you from financial loss. Sometimes settling a claim is better than exposing a customer to additional financial loss.

When insurance companies disagree on who is liable, they have several ways to resolve their disagreement. Many companies avoid going to court by participating in inter-company arbitration. This is an agreement between insurance companies to accept the judgment of a panel of claims adjusters who work for companies not involved in the accident. This system saves insurance companies legal fees and court cost. Not all companies participate in this program, so your accident may end up in the legal system. Inter-company arbitration does not prevent you from hiring your own legal counsel and seeking renumeration for your injuries.

The process of an insurance company seeking reimbursement for money it has paid out in a claim is called subrogation. The subrogation department is responsible for getting money paid by your insurance company to repair your vehicle when it believes another party is responsible. They are also the people who try to get your deductible back. Subrogation takes time and has a set of rules. Do not be surprised that months pass before you get your deductible back. The advantage is the company you pay your premiums to will have fixed your car and you will only be out a small amount of money.

Bob Hollick is a State Farm Insurance agent based in Washington. His column appears every other Friday in the Observer-Reporter.