Insurance claims

An insurance claim is a formal request by a policyholder to an insurer for compensation after a covered loss, such as car accidents or house fires. Policyholders file claims through phone, online portals, or mobile apps; State Farm processed over 500,000 auto claims digitally in 2022.

Insurers typically require documentation like police reports or repair receipts as proof of loss; Allstate asks for photo evidence for auto damages. Most insurers process straightforward auto or property claims within 7–30 days; Progressive averages under two weeks for minor auto claims.

If an insurer denies a claim, policyholders receive written explanations and can appeal; the NAIC reported that 12% of all homeowner claims are disputed annually. Deductibles directly reduce payout amounts; if your deductible is $1,000 on a $5,000 loss, you receive $4,000 from the insurer.

Multiple claims can raise premiums significantly–FEMA data shows homeowners with two water damage claims paid up to 20% higher premiums after settlement. Insurance adjusters assess damages on-site or remotely; GEICO uses virtual inspections for over 60% of its small auto claims.

Insurance fraud causes delays and investigations–Coalition Against Insurance Fraud estimates fraudulent claims cost insurers $308 billion yearly in the US. Liability claims often take longer due to legal reviews; Travelers reports average bodily injury claim durations of four months.

Insurers may partially pay or deny if losses fall outside coverage limits or exclusions–for example, standard homeowners’ policies exclude flood damage unless add-on coverage exists, according to the Insurance Information Database.