In the unfortunate event you're involved in an accident, there are a series of steps and forms you'll need to obtain in order to file a claim with your insurance company. One of these documents is an authorization letter.
So, what exactly is an authorization form, and how do you get one? To ensure you know what to do when filing an insurance claim, stick around!
What is an authorization letter?
An authorization letter is a type of form your car insurance company will ask you to sign during your claims process. These forms essentially provide consent to your provider, allowing them to collect information on your behalf regarding the accident and more. For example, common forms include authorizations for medical records, employment documents, and more, which will then help your adjuster determine how much compensation you are owed.
Is a claim experience letter the same as an authorization letter?
No, a claim experience letter and authorization documents are not the same. A claim experience letter is a document you can request from your insurance company which outlines your previous claims history. You may require the type of document if you move out of the province, if there are discrepancies in your coverage, or if you were not the primary policyholder with your previous insurance policy.
How to make an authorization letter?
Writing an authorization letter is easier than ever nowadays. There are numerous templates online that are available for Canadians to download and fill out. You can also find these types of forms on your insurance company's website as well.
How to file an insurance claim with your insurance company
So, you've just been in an accident--now what? Here's how to navigate your claims process moving forward:
Exchange information with the other driver
Before leaving the accident scene, contact information should be exchanged with the other drivers involved. You should get their licence plate number, policy number, phone number, and driver's licence number.
Document the scene
Once information has been exchanged, begin documenting the scene by taking numerous photos and videos. This will help your insurance adjuster determine fault later in the claim process. Bonus: you have these photos in the event that something happens to the information that you wrote down.
Review your insurance policy
Now that you're home take a look at your automobile insurance documents to ensure that your injuries and vehicle damages are covered by your insurance. Once you've confirmed that you are eligible for compensation, you can go ahead and call your company.
Contact your insurance provider
When you phone your insurance provider, you'll likely be connected with an agent who will ask you to provide details of the incident that occurred. Once you've provided your information, you can expect to receive a file number for your claim and the name of your assigned adjuster.
Sign forms
Your adjuster will likely ask you to sign claim forms, allowing them to collect your medical documents, employment information, and more during the process. These documents will allow them to compensate you for the incident according to the type of injuries you have and the damage to your vehicle.
Get a vehicle repair quote
During the process, you'll also be asked to take your automobile to a repair shop and get a quote for costs. Your insurer may ask you to visit certain collision centres they have previously worked with.
Get your repairs
Once approved, you'll be able to go ahead and book a repair appointment to fix your vehicle.
Get compensated
Once the repairs have been completed, your adjuster will send you an offer for compensation. If you do not believe the amount of money is fair, you can negotiate for more. Once you've come to an agreement, you'll receive your payout.
Car insurance coverage you need
To ensure that you are covered following an accident, consider purchasing the following types of auto insurance:
Third-party liability insurance
Third-party liability is a type of car insurance that is mandatory in all Canadian provinces. It protects policyholders in the event they are involved in an accident that leads to third-party bodily harm or property damage. It covers the cost of repairs, replacements, medical expenses, legal fees, and other associated fees if a lawsuit is filed against you up to your coverage limits.
Accident benefits coverage
Accident benefits coverage is also mandatory in most provinces and territories in Canada. Regardless of which driver is at fault for the incident, accident benefits insurance will cover the cost of medical bills, rehabilitation, lost income, and more, ensuring that you and others involved can heal from their injuries.
Uninsured motorist coverage
Again, another type of mandatory insurance is uninsured motorist coverage. This policy protects you if you are involved in a car accident with another driver who is uninsured or underinsured. It also protects you if you are involved in a hit-and-run.
Collision car coverage
Collision car coverage will pay for the cost of repairs or replacements if your vehicle is damaged in an accident. Typically, this type of coverage requires you to pay a deductible before your insurance provider will cover the rest.
Comprehensive car coverage
Comprehensive car coverage will pay for costs associated with repairing or replacing your vehicle if it is damaged during a non-collision event, stolen, or vandalized. Again, you will need to pay a deductible before your provider will cover the rest.
Accident forgiveness
Accident forgiveness is a one-time insurance policy. Normally, after an at-fault incident, your insurance premiums will increase. But with accident forgiveness, your first at-fault accident will kick into place, enabling you to avoid a premium increase. Any at-fault accidents following this will not be covered.
What happens when an insurance company refuses to approve a claim?
So, your car insurance company denies your claim --what are you supposed to do now? There are many reasons the claim may be denied, and it's important that you have a better understanding of why this occurred. Once you've done so, you can take a look at your coverages and confirm that your policy covers what you are trying to claim. If it does, then you can file an appeal with your insurance provider.
What are some reasons behind claim denials?
For the most part, your insurance company will approve your claim efficiently, ensuring that you are compensated for injuries and damages following a collision. However, there are certain times when your provider could deny your claim. Here's a closer look at why claims are denied:
Your insurance has expired
If your insurance is expired or there is a lapse in coverage, your insurance provider will refuse to compensate you for any damages that may result from a motor vehicle accident. It's important that you stay on top of your coverage and ensure that you renew your policy on time to prevent this from happening, as it can result in hundreds to thousands of dollars in expenses that will come out of your own pocket.
You didn't provide enough information
Another reason why your company will deny your claim is because you did not provide enough information to your adjuster. The more information you provide, the easier it will be for them to approve your claim and compensate you. Remember to take numerous videos and photos to ensure your adjuster knows exactly what occurred.
The claim exceeds your policy limit
If your claim exceeds your policy limit, you'll be responsible for paying the remaining damages on your own. When purchasing coverage, make sure you choose a policy limit that is high enough to cover costs that may arise in the future.
Potential insurance fraud
If, following an investigation, your insurance provider believes your claim is fake, they will begin investigating your file further to determine whether any fraud has taken place.
Contact BrokerLink today
Unsure what to do if you're in a car accident? Have questions about your current policy? BrokerLink is here to help. Our brokers have years of experience in the industry working with Canadians just like you.
Give us a call anytime to speak with a broker over the phone, or come visit us in one of our offices! We have locations across the country! In the meantime, if you're looking for a competitive insurance quote while you're on the go, take advantage of our free online quote tool!
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FAQs on authorization letters for car insurance claims
How many car insurance claims are there a year in Canada?
In Canada, insurance claims happen more often than you may think. So, what is the amount of claims per year? While this can vary each year, the auto insurance sector spent about $16.3 billion on claims in 2022 alone.
Can you cancel a claim?
If you need to cancel a car insurance claim, know that it is possible, but only in some instances. Just keep in mind, however, that the further along in the process you are, the more difficult it will be for you to have your cancellation authorized. Additionally, if you are found at fault for the accident, you will not be able to cancel your claim at all. This goes for those who have shared fault as well. The best thing you can do in this situation is reach out to an insurance agent and explain your reasoning for the cancellation to them. They'll then be able to inform you of whether or not the cancellation is possible at that time.
Should I call my insurance company after a minor car accident?
Calling insurance after a minor accident is highly recommended. While it may appear as though damages are minor and that you do not have any injuries, it's often not until later that you notice these types of consequences. Ultimately, reporting a car accident, regardless of how minor the incident may appear, can help you avoid paying for any future repairs or medical care you may require. Your insurance is there to assist you during this time. If you're afraid of a rate increase, know that this can only occur if you are found 100% at fault for the accident, which is why a professional investigation by your company is needed.
Is a police report required for an insurance claim?
So, is a police report required for an insurance claim? The truth is, it depends on the situation. Each province and territory has regulations regarding whether or not the police need to be called to the scene following an accident. That said, police reports are valuable documents that can help with your claim, given that they outline the exact circumstances that led to the collision. By having this type of document handy, you can process your claim more efficiently and ensure that the fault is correctly assigned.
Will an accident affect my monthly insurance payment?
Yes, an accident can affect your insurance rates, especially if you have been found at fault for what occurred. Fault for the incident is typically determined by a police report or following an investigation by your insurance provider. The only way an accident will not affect your monthly payment when you are found responsible is if you have accident forgiveness. This coverage prevents a rate increase following your first at-fault collision and can be added to your insurance portfolio at the time you renew your coverage. Remember, however, that this is a one-time policy, meaning that you can only use it for one accident.
What happens if you don't report an accident?
Not reporting a car accident can lead to serious consequences. These include fines, demerit points on your driver's licence, a suspension of your licence, and even a criminal charge. Therefore, you must know the regulations in your area when it comes to reporting an accident to the police. Each province and territory has different rules surrounding law enforcement, and you should know when reporting a collision is required in the province you live in.
If you have any questions, contact one of our local branches.
