According to car accident settlement payouts in Alberta, insurance companies pay out claims for any accident to the insured person.

But a common confusion is how insurance companies pay out claims? Let’s find the answer in this blog.

How do insurance companies pay out claims?

Having an insurance policy can help you in different ways. If you have an accident, you know your vehicle will be safe. Whether a car accident or an accident caused by nature, you can claim compensation from your insurance company.

Here are a few steps that can help  to understand how insurance companies pay claims:

File your claim

After an accident, you can start with the claiming process. Filing a claim will be less fruitful if there’s no loss. So, it’s vital to contact the insurance company right after you are involved in an accident.

There are claim representatives in the insurance company. They will verify the situation and file your claim. However, you have to provide the information and documents about the damage and loss—for instance, police reports, information about the other party, etc. The insurance company will add them to your claim report.

Evaluate your claim

After you file a claim, the insurance company will assess your documentation and paperwork. Then, the company will let you know if your insurance is still effective. Also, they will find whether the claim complies with the terms of the coverage.

You may also need to meet with an insurance adjuster who will visit you, assess the damage, and then submit a report with their findings to the insurance company.

After reviewing the information, the claim representatives will decide whether the claim is legitimate and capable of being given to you.

Approves or denies your claim

The insurance company can approve or deny your claim when they evaluate it. They will deny your case if your claim doesn’t follow the policy guidelines or any missing documents.

Also, you might require to provide additional documents and information so that the claim gets granted. You will get notified about whether they approve or deny your claim.

Receive your payment

When your claim gets approved, the insurance company will provide you with the loss amount. The insurance company will evaluate and decide this loss amount. 

Finally, you will get the payment as per the evaluated amount. In some cases, the insurance company directly pays off through the vendors involved in the case—for example, a car mechanic.

Time duration for insurance companies to pay out claims

When you start the claim process, you might think about the time duration for insurance companies to pay out claims. Many factors determine the claim. 

Some of them are:

  • The severity of a claim
  • Involvement of people in the incident
  • The time limit that you file the claim
  • Important documents and information that are given to the insurance company

How to make insurance claims?

Contacting your insurance company can help you to decide on a claim. In most insurance companies, you will find that there is a time limit to submit a claim.

However, you have to claim within 90 days to 12 months after the loss or damage. Make sure to check the time limit’s terms and conditions before you start to file for a claim.

After the insurance company reviews your case, they will assess your claim. Sometimes, they would also look into related circumstances related to your issue. Such situations help the insurance company to stay away from fraudulent acts—which is also known as claim investigation. 

While investigating, they would ask for additional documents like medical reports or police reports. Eventually, these would help you to get the claim amount.

Make insurance claims on lost or old policies

Such situations occur when a family member or a loved one passes away. You can get the help of such issues in many ways. But the best one is to find information based on the policy or the deceased one’s information.

Final Verdict

We hope you got your answer to “how do insurance companies pay out claims.” However, you will receive the settlement amount based on the severity of the accident. 

As it’s very challenging to negotiate with insurance companies, you will require to hire a lawyer. They can help you with the claims and related challenges as they have expertise in this sector.