It is essential to familiarize yourself with making insurance claims in case you are involved in an accident. The claims process will depend on your auto insurance policy. You should consider things such as your deductible and the time limit for submitting a claim. If you know what to expect, the claims process will proceed smoothly. Here are answers to frequently asked questions about auto insurance claims.

Should Your Insurance Company Pay for Claims Within a Certain Period?

There is no time limit for settling claims. Insurance companies are required to pay all claims within a prompt and reasonable time. The meaning of prompt and reasonable is subjective. It depends on the circumstances of one's case.

Some cases require a thorough investigation, which may take longer for the insurance company to settle a claim. For example, an accident claim involving bad weather may take the insurance company a lot of time to handle.

Do You Have to Pay an At-Fault Claim Yourself?

If you are in a fault state and responsible for the accident, you will be liable for anyone's losses and injuries. You may be required to pay part of the cost. The amount of money you will pay depends on the cost of the damages and your deductible. Surcharges for at-fault accidents may also be included in your automobile policy.

In a no-fault state, each person's auto insurance will cover their losses. Therefore, it might not be in your best interest to file an insurance claim if you are in a fault state. You should consult an attorney to understand the laws that apply to filing insurance claims in your state.

What Happens If Your Car Is Totaled? 

Your car is totaled when your insurance provider determines that the cost for repairs is more than the car's actual value. A collision or a natural event may total a car. If the cost for repairs is 70% of the actual value of your car, your vehicle is considered a total loss.

If you caused the accident, your insurance provider would cover the cost of your car's value minus your auto insurance policy's deductible. However, if the accident is the other driver's fault, their insurance provider will pay you an amount equivalent to the actual value of your car. The actual value of your car is usually based on the vehicle's Kelley Blue Book value, information about car sales in your jurisdiction, and any faults that existed before the total car loss.