If you’ve been in an accident, and your car has been damaged, you're likely hoping to receive enough money from your insurance claim to cover your expenses, minus your deductible. It's what most people who have car coverage expect to happen when they make a claim.
While you're hoping to get paid for your losses with as little hassle as possible, your car insurance company's main goal is to ensure that it doesn't end up paying any more than it has to. As is the case with every claim, it is also on the lookout for fraud.
As you go through the auto insurance claim process, you should know what to expect, what documents to keep handy, and when and whether you should hire a lawyer.
Once you’ve filed a claim with your car insurance company, a claims adjuster takes your case. As an employee of the insurance company, this person will work to make sure you're paid in a proper amount of time if your claim is fair, and will avoid paying you if it's not.
The claims adjuster may contact you or your lawyer, if you've retained one, for details of the accident and to confirm your original claim. If there was a serious accident, the adjuster may request a copy of the police report, contact people who saw the event, or even visit the scene of the accident. The adjuster may ask you for photos of your car or even view it in person to inspect it for damage. This is why it’s always a good idea to take photos of your car and any other cars involved in a crash as soon as possible after it happens.
If the insurance company seems to be asking a lot of questions, don't take it personally. They are always on the lookout for fraud, and your case is no exception. It's their job to make sure they don't pay any money they don't have to.
It’s crucial that you do all that you can to recall what happened and keep your facts straight. Create a voice memo, or take notes as soon as you're able. You don't have to give this to the claims adjuster, but it may be helpful to keep it for your own records.
You should also keep track of any documents that were created as a result of the accident, including police reports and medical records. It’s a good idea to take photos of your car and other cars involved as soon after the accident as you can. If you were injured, get photos of your injuries as well. This documentation helps to support your claim.
Whether you need a lawyer depends on the details of your case. In a simple claim, where no one was hurt, for example, you might not need to consult a lawyer. If you were gravely injured, or your insurance is delaying paying your claim, think about getting legal help.
Some lawyers do not charge for the initial meeting that can help you decide whether you want or need to hire them. Even if you decide not to proceed with a lawyer, this meeting can prepare you for talking to the claims adjuster, who will likely ask some of the same questions.
If you or another person in your car were injured and have racked up large medical bills, you may need help getting your insurance to pay for the cost of your treatment. It may make even more sense to hire a lawyer in such an event. An insurance company can and may request access to your medical records to see whether you already were injured before the accident. A lawyer could help in that instance.
Even if nobody was hurt, you may want to get a lawyer if your insurance company keeps making excuses for why it still hasn't paid you after you’ve made a claim.
Once the adjuster has processed your case, a settlement value will be offered. In cases of injury, if you don’t have a lawyer, they may ask you to name the amount you’re willing to settle for. It’s usually better to see how much the company is willing to offer first, and work it out from there. Since this negotiation can be difficult, it may be helpful to work with a good lawyer who assists injured clients.
Before you agree on a final settlement, you should consider the possibility that you may have additional or ongoing medical costs or wage losses if you were injured. The future costs associated with the accident should be built into any final settlement.
The process of being paid for damages and losses is known as "indemnification." Once the insurance company concludes the investigation and decides who was at fault, it will either pay you the cost of your damages minus your deductible or seek payment from the other driver’s insurer in a process called "subrogation."
If you’re unhappy with the amount of money you’re offered to settle your case, then it may be time to contact an attorney to discuss your options.
For car repairs, you likely will be asked to go to an auto shop approved by your insurance company.
While the investigation of a claim might make you feel like you are on trial, just remember that, armed with the facts, you will get the money that you deserve and that your policy covers. Always be prepared, and arm yourself with proper documentation and a lawyer if necessary. A positive attitude never hurts either.
An insurance investigation can finish after just a couple of days, but any complications can extend that timeline. An especially long investigation can take several months, although your state likely sets a limit on how long an insurance company can take.
Claims are usually investigated by a claims adjuster, so it isn't necessarily a negative thing for your insurance claim to be investigated. The insurance company just wants to verify the details of your claim as a part of its standard fraud prevention—it isn't anything against you.
Find out why drivers with “high risk” jobs don’t always make the most claims.
There’s not much an insurance company won’t analyse to determine a customer’s potential risk when it comes to car insurance and that goes for your job, too.
Data has shown that people in some occupations are considered a higher risk than others and so your job title, as well as many other risk factors, has a part in calculating your car insurance quote.
There have been a lot of editorials recently around “tweaking” your job title to get a lower premium, but how big a factor is it, and can you really make a difference? We looked at this whole topic and uncovered some interesting facts.
A high risk job title doesn’t necessarily mean you’re likely to make more claims
The paradox is that even if your job title puts you into a high risk category for car insurance, available data doesn’t necessarily show that you’re more likely to make an at-fault claim than drivers in other professions.
To examine this in more detail we studied some research carried out by GoCompare earlier this year. This is Money published part of that research, listing the occupations most and least likely to affect your insurance premium.
Top 10 occupations that can hike your car insurance premium
The jobs most likely to increase your premium revealed some unexpectedly high risk, higher cost professions.
- Fruit and vegetable pickers
- Waiters
- Builder’s labourer
- Factory packers
- Painter
- Car valet
- Security guard
- Construction worker
- Barber
- Delivery courier
Other occupations typically known to pay higher premiums are journalists, chefs and entertainers.
Top 10 jobs for cheaper insurance
- Retirees
- Secretary and PA
- Clerical assistant
- Local government officers
- Medical secretary
- Secretary
- Classroom aide
- Book-keeper
- Legal secretary
- Police officer
It’s interesting that many of the jobs on this list are traditionally filled by women. Since the EU directive on gender equality made it illegal to price car insurance differently for men and women, some insurers get around this by making certain jobs a lower risk factor instead.
Who causes the most accidents?
Another part of GoCompare’s research, published in a Which? article, looked at things from a rather different angle. Which? focused not so much on the occupations that GoCompare considered the highest risk, but which were most likely to make an at-fault claim. And if you thought the two lists ought to be more-or-less the same, you’d be in for a surprise.
Occupations with the most at-fault claims
- General practitioner
- Claims adjuster
- Hospital consultant
- Hospital doctor
- Surgeon
- Health visitor
- Mortgage broker
- Optometrist
- Speech therapist
- Insurance consultant
Incredibly, seven out of the top ten in this list work in healthcare in some form or another. A theory has been put forward that healthcare workers have such a high number of accidents because of the stress associated with workers in this sector.
And least likely to make an at-fault claim..?
- Barman
- Picker
- Packer
- Carpet cleaner
- Despatch driver
- Car dealer
- Car wash attendant
- Painter
- Garage manager
- Book seller
The eagle-eyed among you may have noticed that several of the occupations on the list of most likely to increase your premium also featured in the list of occupations least likely to make an at-fault claim!
Pickers, packers and car valet / car wash attendants may be feeling slightly indignant and certain healthcare professionals rather relieved, at this apparent anomaly! We reached out to Martyn John, GoCompare’s PR manager, for comment on their research findings.
(It should be pointed out that GoCompare doesn’t actually set premiums, so these are simply Mr John’s theories based on his knowledge of the car insurance industry.)
- “While certain professions may have a higher volume of claims on average – the costs of those claims could be fairly low. For instance, two small bumps in a car, with no injuries and only costing a few hundred pounds – may not impact premiums as much as one £15,000 write off. So frequency of claims may not correlate exactly in the way someone might expect.
- “Claims are just one of a list of variables that go into a car insurance policy. Driving history, location, vehicle details are also significant factors – while medical professionals may have more claims on average, they may be less likely to have a conviction – or may drive at better times or park in areas where there are less instances of car theft/vehicle damage.
- “Age is usually one of the most significant factors in car insurance – in most cases we discount students from these pieces of research (as it’s not an ‘occupation’ as such, and it often skews the data – this includes medical students). Many jobs that over-index for younger people (bar staff is a good example) tend to carry higher average premiums due to this. By and large most qualified medical professionals tend to be older than what would be considered a “young driver”, so premiums are likely to be lower. Usually a 35 year old with a claim and conviction will still likely have a lower car insurance premium than an 18 year old with a clean licence.”
This makes a lot of sense. Nothing is ever simply black and white and the same is certainly true when it comes to pricing car insurance. When you boil it all down, the bottom line is that while it can seem worth tweaking your job title to see if it makes any difference to a quote, it’s just one of many factors an insurer takes into account.
Taken in isolation, your occupation doesn’t necessarily make you more likely to have an accident, or to make an expensive at-fault claim, but statistically, you may share some characteristics with drivers who are.
Tweaking your job title for cheaper insurance
If you do test the impact of different job titles on the cost of car insurance, bear in mind that your stated occupation must accurately describe your profession. For example, you might find that a “proof reader” is a lower risk than an “editor”. A “legal secretary” might pay less than a “law clerk” while a “café worker” could be a better job title than “kitchen worker”.
If you veer too far from your actual occupation, though, you could be guilty of fraud and you risk invalidating your insurance as well as facing a criminal conviction.
Do you have to tell your insurer if you change jobs?
Yes, you need to let your insurer know if your occupation changes. As with any other risk factor, such as where you live or the type of car you drive, your profession can affect the cost of your car insurance.
If you don’t inform your insurer, you could invalidate your cover.
Is car insurance more expensive if you’re unemployed?
If you’re unemployed you may pay more for your car insurance.
BBC research found that car insurance premiums averaged 30% more for out of work drivers, but costs could be as much as 63% higher.
The Association of British Insurers confirmed that unemployment was a recognised risk factor for insurers and say that this is supported by actuarial evidence.
Some theories to explain the perception of higher risk are:
- unemployed drivers will use their car more frequently to travel to more locations as they seek work
- The unemployed are less likely to maintain their vehicles, which could lead to more claims
Does your occupation cause you an insurance headache?
Confused and struggling to get affordable car insurance? Complete Cover Group specialises in helping drivers in your situation. If you’re in a high risk profession and looking for a great deal, get a quote today.