Understanding the Property Damage Claim Process After an Accident

After an auto accident, the property damage process usually begins when the driver reports the crash to their insurance company. This initial report includes details about the accident, photos of the vehicle damage, and information about where the vehicle is currently located. Once the claim is opened, the insurer verifies coverage and arranges for an inspection or appraisal to evaluate the cost of repairs.

If the vehicle is still drivable, the owner may be asked to take it to a repair shop for an estimate and repairs. If the vehicle is not drivable, towing and storage arrangements may be necessary, and the driver may be provided with a rental vehicle while repairs are pending. As repairs begin, it is common for repair shops to discover additional damage that was not visible during the initial inspection. These issues are addressed through supplemental estimates, which must be reviewed and approved by the insurance company.

In more serious cases, the insurer may determine that the vehicle is a total loss. When this happens, the claim is resolved by paying the vehicle’s actual cash value rather than covering repair costs. Once repairs are completed or a total loss settlement is finalized, the insurance company issues payment and closes the property damage portion of the claim.