Insurance is a contract between the policyholder and insurer in which the insurer compensates the policyholder against losses from covered events. It’s designed to help policyholders manage losses by reducing their financial uncertainty. An insurance claim is when policyholders ask their insurance company for payment following a covered loss. The payment request is called a claim. Insurance claims can be made for events like property damage, car accident-related injuries, and life insurance death benefits. Payments can happen over as little as a few weeks to several years. 

Types of insurance claims

  • Car insurance – This covers damage to your car or injury to others when you’re at fault for an accident. You can file a collision claim for accident-related damage if collision insurance is included in your policy. 
  • Health insurance – Your doctor’s office will typically handle health insurance claims by filling out the claim to determine if you still owe money. This type of claim doesn’t require much involvement from the policyholder. 
  • Homeowners insurance – Your insurer will pay out a covered peril like theft or a fire caused damage to your property. This type of insurance also covers liability for injuries to visitors in your home and reimburses you for a hotel or rental home stay if your home becomes uninhabitable. 
  • Renters insurance – Insurance claims are subject to specific events like theft, damage to your personal property, and personal liability. 
  • Life insurance – Your beneficiaries will receive a tax-free claim payment after they provide a copy of the policyholder’s death certificate. 

How does an insurance claim work?

The claim filing process can vary from mailing documents to calling a representative and more. The policyholder’s job is to pay the deductible before the insurance provider steps in to pay for the rest of the covered loss. The type of claim you want to make can also affect the claim filing process. For example, personal property and home claims can take pretty long to file because they usually require meetings with adjusters, estimate approvals, and more. Filing a claim for health insurance rarely needs the policyholder’s involvement, so the process is easier. You can file a complaint if you believe your insurance provider hasn’t been fair with your claim. 

Here’s a simplified claim process: 

  1. Report your claim to your insurance provider – You can do this by phone or online. 
  2. Wait for the adjuster to investigate your claim – You’ll be asked to provide information regarding the loss. Giving the adjuster more details can make the process easier and faster. 
  3. Wait for your insurance coverage to be determined – Your adjuster will let you know what and how much is covered. They should also tell you if there’s an applicable deductible. 
  4. Repair and replacement – Compensation can begin once coverage is determined. You’ll be given a list of recommended contractors for the repairs and your insurer will issue a portion of the final payment so the repairs can start.
  5. Payment – Your insurer will settle the claim by paying you the rest of the repair costs when the repairs and replacements are done. Expect negotiations between you and your insurer if you filed a complex claim. Negotiations will determine who pays for what. If you don’t agree with the insurer’s offer, you can file a formal dispute process for your claim.

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Does your insurance go up if you make a claim? 

Unfortunately, higher premiums are associated with claims. Your insurer will decide if your premium will increase if you make a claim. A policyholder’s claim is one factor that goes into calculating their premiums. If you’re claim-free, some insurance providers will offer you a discount and others will most likely not raise your premiums if the claim is small. Another factor that goes into calculating premiums is the type of claim you make. For example, water damage from a burst pipe could lead to a premium increase, but lightning strike damage might not because the event is not likely to occur. 

Make sure you file a claim only when you really need to. If you can afford to replace something yourself, it might be worth holding off on filing a claim so you don’t risk your premium payment going up. 

How long does it take to get an insurance check? 

It really depends on the amount of damage, but settling insurance claims can take as little as a few weeks to a few years. Receiving your check for minor damage caused by an accident can be quick. If your entire home needs to be rebuilt after, expect to receive multiple checks over a longer period of time. 

You can keep your insurance claim money in certain cases. For example, you can use auto insurance claim money for anything you want if you own your car. However, insurers usually don’t pay for secondary repairs. Another instance where you might be able to use the money however you like is with homeowners insurance claims. If you don’t have a mortgage but you have leftover insurance claim money, you can often keep that money unless your policy requires you to return unused funds. 

Frequently Asked Questions 

Can you file a claim with two different insurance companies?

You can have two insurance policies covering a single home or vehicle, but each policy usually only pays for a portion of the damage. Most policies have an “other insurance clause” that’s designed to make sure you don’t financially benefit from any insurance transaction.

Can you cancel an insurance claim?

You’ll be able to withdraw or cancel a claim with most insurance companies if you’re the one who filed the claim. Even though the claim will stay on your record, it’s going to show a payout of $0. Your premium also shouldn’t be affected by canceling an insurance claim. 

Can you still get insurance after filing a claim?

Yes, but the cost of your premium might go up. Also, your insurance company might not renew your policy at the end of the policy period if you file a very large claim. Insurers are usually required to give you a 30 to 60-day notice if they decide not to renew your policy. 

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