Question: What does it mean when a claim has been closed?
Answer: To close a claim in reference to an auto insurance claim typically means that the claim has been handled either with it being accepted by the insurance provider and the damages paid for or the claim was denied.
If the claim was denied by the insurance company, it will be closed out because there is no further action to take. If the claim was accepted then to close a claim normally your damages would be taken care of according to the terms of your policy, if using your own insurance for the claim, or the policy of the at-fault party.
If your car cannot be repaired but is found to be a total loss then a claim would be closed out after a settlement agreement has been made for the actual cash value of your car and you have received it and filled out any necessary paperwork.
Once a claim is closed it usually means there are no more negotiations or payments to be made. In some circumstances a closed claim can be re-opened so that you can place a supplemental claim. Some reasons that a claim can be re-opened include:
- There was unseen damage or damaged parts that were not apparent when the original estimate was made.
- The body shop incurred extra unforeseen costs while repairing your vehicle.
- There are more medical expenses incurred by someone hurt in the accident.
State laws differ but some states have in place a time period in which a claim should be processed. You can use the car insurance calculator to determine what car insurance coverage you should buy.