Five things you need to know when making a car insurance claim

• Exchange information at the scene of the accident with the other party involved. This includes the other driver’s contact information (name, address, and phone number), license plate number, insurance carrier’s name, policy number and phone number.
• Call in the car insurance claim as soon as possible. Many car insurance companies have 24-hour claims services or allow you to file and track your claim online. Report the accident and any damages and/or injuries. Be ready to explain basic information surrounding the accident.
• The claim is investigated. The insurance company's claims adjuster will review both drivers’ accounts of the incident, read over the accident report and possibly view the vehicles to determine the cause of the accident.
• Determination and settlement of claim. Your claim will be approved or denied. If approved, the adjuster may come to look at the car and estimate the repairs or have this done at the body shop where it will be repaired. If the car is deemed a total loss, a settlement amount is offered instead of repairs.

Read more: What to do after a car accident

Insurance companies would prefer you make your auto insurance claim as soon as you can, within 24 to 48 hours if possible, but you have longer if you need to take more time.

State laws as well as car insurance companies’ guidelines vary on how long one can actually take to make a car insurance claim (or file a lawsuit) before the time is up and you lose your right to recover money through a car insurance claim. In general, the average time limit for making claims is a year or two for physical damages to a vehicle and one to up to six years for bodily injury.

Read more: Who pays the deductible if the accident isn’t my fault?

States with laws may give a stated amount of time, such as 30 or 45 days, or just say within a "reasonable amount of time." The laws may differ depending upon whether your auto insurance claim is a first-party claim with your own insurer or a third-party claim with the at-fault party's insurance company.

If you are making a first-party claim, read through your policy and contact your agent. For a third-party claim, speak to the at-fault party’s insurance adjuster assigned to your claim for this information. You also can always contact your state’s insurance regulator, who can give you details on your state’s laws.

Read more: How to deal with insurance adjusters

In general, if it is not cost-effective for the insurance company to repair your vehicle, it will be deemed a total loss.

Some states set specific guidelines for when a car should be found to be a total loss, while many leave it up to the insurance company to total out a vehicle when the cost to repair the vehicle, and associated costs such as towing, storage, etc., are anywhere between 51 and 80 percent of the vehicle’s actual worth. 

Once a car is determined to be a total loss, the insurance company will offer you actual cash value (ACV) for it based on the condition of the car the moment before the accident occurred. Insurance companies each have their own internal guidelines, but in general they will use information from local dealers, comparable cars for sale in your area, valuation guides and their own computerized evaluation software. 

Read more: How is actual cash value determined after a crash?

It all depends upon the type of accident you had, your insurance company’s rating system, state laws, and how many claims/accidents you have previously had.

Comprehensive claims typically do not cause your car insurance rates to rise, unless you file two or three within a few years. Collision claims often make your rates go up, but if you have a lenient insurer and the accident was minor, then they may not. Some car insurance companies do not impose a surcharge if the accident did not cause damage or injury in excess of $1,000, unless you have had two or more of this type of accident within the last three years.

The more accidents you are in, even if not at-fault, the more accident-prone you will appear to an auto insurance company. Expect to pay more for your premiums.

Read more: ‘Accident forgiveness’ car insurance -- what’s the catch?