If you've been in a car accident, filing an insurance claim with your insurance company is essential to ensuring you receive fair compensation for any injuries or vehicle damage. If this is your first accident, you may have some questions about the overall claim settlement process and how long it takes for an insurance claim to be settled. So, stick around to learn more about car insurance claims and what you need to do if you've recently been in a collision.
What Is the typical timeframe for an insurance claim payout in Canada?
The truth is, how long it takes for car insurance claims in Canada to run their full course will vary depending on a couple of factors. While some may take a few days, others can take several weeks, a few months or even years to reach a settlement. So, what can impact the duration of a claims process? Some common factors include:
The overall complexity of the incident
There are multiple parties involved, and the investigating officer has difficulty determining who the at-fault driver is.
The severity of injuries
More serious accidents with numerous injuries may take insurance companies longer to assess.
Disputes between drivers
Disputes between you or the other driver(s) regarding who is found at fault can cause delays.
How much evidence there is
If there is a lack of evidence about the circumstances of the accident, your open claim can take longer to resolve.
How long does it take to settle a car accident claim in Ontario?
As we mentioned, the claims process with your insurance company in Ontario can take a few weeks, months, or years to reach a settlement. As a rule of thumb, drivers can anticipate waiting on average a year or more if their car accident claim involves physical injuries. C Claims without injuries will take less time, so you can get the necessary repairs completed on your vehicle.
What is the time limit for insurance claims in Ontario?
Filling an insurance claim as soon as the accident occurs is essential to receiving compensation for your injuries and vehicle damages as soon as possible, which is why time limits exist. While time limits will vary between provinces and territories, in Ontario, drivers have a two-year limit to file a claim with their insurance company.
What does the claims process look like?
Being in an accident can be a highly emotional and stressful time, especially if it's your first collision. To ensure that you are able to file a claim correctly and receive compensation under your insurance policy, take a look through this step-by-step guide we've crafted below:
Reach out to law enforcement (if needed)
Depending on the province or territory you live in and the circumstances of the accident, you may need to contact the police and have them at the scene. Once they've arrived, they will collect evidence and report their findings.
Should police be called, it's essential that you ask for a copy of the report. Police reports are incredibly helpful during the claims process and can help confirm who the at-fault driver is.
Document the scene and exchange information
Following the accident, you'll want to exchange information with the other parties involved, including their name, number, and a photo of their driver's licence. Additionally, it's important that you take photos and videos of your own of the damage and surrounding environment. With any claim, the more evidence you provide, the easier it will be for your adjuster to process your claim.
Contact your insurance company and report your claim
Once you're in a safe location, you'll now need to contact your insurance company and report your claim. At the time you call, you'll likely be speaking to an agent who will give you the information you need to get started.
Provide details about your auto accident
When initially speaking with an insurance agent, they are going to ask you about what happened and collect as much information from you as possible. Be prepared to speak on the phone for a while and do your best to recount what happened.
Get a claims adjuster assigned
Once an insurance agent from your insurance company opens your claim, you'll be provided with a claim number and a claims adjuster within a few days, who will be working with you throughout the rest of the process. It's important that you maintain open communication with your adjuster throughout the claim to ensure that you stay up to date on the status of where things are and where they are headed.
Get an estimate for your vehicle damage
If your vehicle suffered damage, your insurance company will want you to get an estimate for vehicle repairs. In most cases, they'll ask that you go to an auto repair shop that is approved by your insurer. However, it doesn't hurt to get a second opinion as well.
Schedule your car repairs
Now that you have an estimate for your vehicle, you can go ahead and pay for the repairs. Your insurer will reimburse you for the money you spent on your vehicle at a later date. Depending on the damage and circumstances, you may need to pay a deductible before the insurance will cover the cost of your repairs.
Receive compensation from your insurance provider
At the end of the claim process, you'll receive pay for all vehicle damages and injuries that may have occurred during the accident. Most insurance companies will pay you via direct deposit or send you a verified cheque in the mail within seven days of the claim release being signed.
Do I need a police report for my car insurance claim?
Here's what you need to know about the necessity of a police report for your car insurance claim:
Protect your vehicle with high-quality car insurance
In the event you need to file a car insurance claim with your insurance company, having the right car insurance in place can make a world of difference and ensure that you are fairly compensated for your damage or loss. At the same time, car insurance is mandatory for all drivers in Canada. Whether or not a certain coverage is legally required in your province or territory will depend on the rules and regulations for your province or territory.
We recommend taking note of the different types of auto insurance to guarantee you're properly covered with the following:
Reasons your insurance claim may be denied
Did you know that your insurance company can deny your insurance claim? While not very common, it can still happen! So, why does this happen? How can you avoid this? Take a look at some of the reasons the claim may be denied:
Misrepresentation of information
During the claim process, your insurance company may deny your claim if you misrepresent information. It's essential that you tell the truth about what happened and do your due diligence to ensure all information, whether it be addresses, the time of the accident, and other details, are reported correctly.
Your coverage terms and conditions have been violated
Another reason why your claim may be denied after filing is because you violated the terms of your insurance coverage.
Not enough information was provided
If there is a lack of information or evidence for your claim, it can be difficult for your insurance company to determine fault. Other information that may be lacking could include the other driver's information, medical receipts, repair invoices, and more.
The incident happened while performing illegal activities
If your vehicle was being used for illegal activities and you had knowledge of these illegal activities taking place, your insurance company has grounds to deny your claim.
What to do if your insurance company denies your claim
So, what should you do if your car insurance company denies your claim? There are a couple of things you can do. The first is to figure out why, after filing your claim, your insurance company said no. With this information, you can then go ahead and collect more evidence about what happened, if possible. This includes witness statements, reports from law enforcement, and more.
We also recommend that you review your insurance policies so that you fully understand what is and isn't covered, your coverage limits, and your deductible amount. Afterwards, give your insurance company a call and see if you can negotiate with your adjuster. If this is not successful, you can write an appeal letter to your insurer and seek legal advice for additional assistance. Sometimes, your insurer will reconsider. Other times, you'll need legal assistance to navigate the situation further.
Get affordable auto coverage with BrokerLink
Looking for affordable coverage but aren't sure which car insurance company to work with? Need help navigating your auto insurance claim? Aren't sure what to do if you're in a car accident? BrokerLink is here to help!
With years of experience and locations across Canada, our team of expert brokers may be working in your neighbourhood! Come visit us in person to work with a broker one-on-one, or give us a call at any time during regular business hours.
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FAQs about the duration of insurance claims processing
Is failing to report an accident illegal?
Will a car accident claim affect my insurance premium?
Yes, an accident will affect car insurance rates. If there are other drivers involved, your insurance adjuster will determine the fault, which will influence how much of an effect the accident will have on your insurance policy. The only scenario in which an accident will not affect your premium is if you have an accident forgiveness insurance policy in place. Accident forgiveness is a one-time protection for new and responsible drivers that prevents insurance increases following their first at-fault accident. Once used, the insurance policy cannot be applied in the future.
Do I need to file a claim after an accident that only has minor damage?
Calling insurance after a minor car accident is always recommended, given that potential injuries and damage to your vehicle may not be noticeable right away. What may appear to be minor damage may turn out to be costly repairs and injuries that require ongoing treatment, which you could be responsible for paying on your own otherwise. So, to ensure that you have support and receive your settlement from your insurer, it's best to call them regardless.
Can I cancel my car insurance claim?
If, for some reason, you want to cancel a car insurance claim, know that you are able to do so. However, the further along you are in the claim settlement process, the harder it may be. We recommend speaking with your insurance provider as soon as possible about why you want to cancel. It's also important to note that if you are found at fault for the car accident claim in question or have shared fault with the other drivers involved, you won't be able to cancel your auto insurance claim.
How many claims are there in Canada each year?
What is a claim experience letter?
A claim experience letter is a formal document you, as a policyholder, are able to request from your insurance company that outlines your insurance claim history. Reasons why you may request this type of document include moving to a new province or country if there was a lapse in your coverage and more.
If you have any questions, contact one of our local branches.
