Claims work by policyholders making formal requests to their insurance companies for compensation. The first step involves filing the claim, where policyholders inform their insurer about the incident. They provide detailed information and evidence, which can be submitted via phone, online, or mobile apps.
Next, the insurance company investigates the claim. An adjuster may inspect the damage and estimate repair costs. The adjuster might ask for more information from the policyholder to support the claim.
If the claim is valid, the insurance company issues payment. This could go to the policyholder or an authorized party, like a contractor. The payment amount depends on the policy type and damage extent.
Policyholders usually need to pay their deductible before coverage starts. The insurer will then cover the remaining costs up to the policy’s limits.
If disagreements arise about the payment amount, policyholders can discuss this with their insurer. Special cases, like those involving another driver’s insurance, may have different processes and deadlines.