Being involved in a car accident is always a nerve-racking experience. Even if no one is injured, it’s an experience that leaves you feeling rattled and disoriented.
Filing an insurance claim is unlikely to be the first thing that comes to mind, especially if there wasn’t much damage.
But understanding your options when it comes to filing an insurance claim (as well as what you need to file) is important to make sure you don’t make any mistakes that could end up costing you more money.
How to File a First-Party Insurance Claim
If you’re one of the people who dreams of having a perfect driving record, or who thinks accidents only happen to other people, it can be a little embarrassing to have to call your auto insurance provider and admit you were in an accident.
But the fact is that accidents happen every day. They’re called “accidents” for a reason, and it’s why you need car insurance in the first place. No one wants or plans to get into an accident, but if you do, it’s nice to know someone has your back.
If you’re involved in a car accident with another driver and you were not at fault for the accident, you can choose to either file a claim with your own car insurance company (this is called a “first-party” claim) or with the insurance company of the driver who caused the accident (this is called a “third-party” claim).
If the driver at fault doesn’t have insurance, or doesn’t have enough insurance to cover the cost of repairs to your vehicle, you might want to file a claim with your auto insurance company.
The benefit of filing a claim with your own car insurance company is that you have a contract with them that requires them to fulfill all the conditions stated in your policy. The downside to filing a first-party insurance claim is it will cause your insurance premiums to go up (yes, even if you did not cause the accident.)
By contrast, if you choose to file a third-party insurance claim, your insurance premiums will not be affected. On the other hand, the insurance company does not have a contract with you. Their contract is with their own policyholder, making their obligations to that person their primary responsibility.
The insurance company will also investigate the accident to determine whether their policyholder was at fault before agreeing to pay to repair your vehicle. They won’t just take your word for it.
Vandalism

Any time you leave your car parked on the street or in a public parking lot, there’s a chance your car might be vandalized. Sometimes it’s as minor as an egg or two thrown at your car, while other times people can throw large, heavy things through your windshield.
Depending on the circumstances and your car insurance policy, you might be able to file a first-party claim and have your insurance cover the costs of the damage.
Unfortunately, there’s not much you can do to avoid vandalism if you have to park your car on the street or in a public parking lot. Just be extra careful around holidays like Halloween when we tend to see an increase in vandalism and pranks gone wrong.
Cooperate with the Investigation
If your car is vandalized, before paying your claim, your auto insurance company will conduct its own investigation into the incident to determine the cause and extent of the damage. You must cooperate with the insurance company’s investigation. Failure to cooperate could prompt them to deny your claim.
You also need to do your best to prevent further damage while the insurance company is conducting its investigation. For example, if a window is broken, you must cover the window with plywood or plastic to prevent rain and other objects from getting inside the car before it can be repaired. Any further damage that is done to the vehicle, such as water damage from rain getting inside and damaging the upholstery, could be denied by the insurance company.
My Car Was Stolen
Aside from damage done to your car from accidents and vandalism, the other reason to pay for auto insurance is if your car is stolen. If that happens, your auto insurance company should pay you for the value of the vehicle at the time it was stolen.
Unfortunately, this means you won’t be paid what you paid for the vehicle because the wear and tear cars experience from being on the road and from age causes them to decrease in value.
The good news is the insurance company will compensate you for the loss of your vehicle, which you can then put towards buying a new car.
What If I Have a Deductible?
If your car insurance policy contains a deductible, your insurance company will deduct that amount from your claim before paying you. This means you’ll have to cover the cost of repairs to your vehicle up to the amount of your deductible, then your insurance company will cover the rest.
How (and When) to File a Third-Party Insurance Claim
If you were in a car accident, but did not cause the accident, you can file a claim with the other person’s car insurance, otherwise known as a third-party insurance claim.
Just remember that, just because you did not cause the accident does not mean you have to file a third-party insurance claim. You can still file a claim with your own insurance company, but if you want to avoid higher premiums, you might choose to file with the other person’s insurance.
Filing a third-party insurance claim only makes sense if you were not at fault for the accident, but it’s not always as simple as at fault or not at fault.
Under Illinois law, it’s possible for both drivers to be found partially at fault for an accident, but usually one party bears more responsibility than the other. As long as your share of the fault for the accident is less than 50%, you can file a third-party insurance claim. However, if you were found to be 20% at fault and the other driver was found to be 80% at fault, the insurance company might only agree to pay 80% of your claim.
Before making a payment, the insurance company will require you to sign a “release for damages,” which states that the amount offered is the only amount you will receive from the insurance company. Make sure you are willing to take the amount offered and no more before signing a release for damages.
Should I File a Claim if Someone Hit My Parked Car?
The short answer is, yes, you should file a claim for damages if someone hit your parked car, even if the other driver took off.
Occasionally, someone will leave a piece of paper with their insurance information if they hit a parked car and no one is around, but this is rare. According to one study, 69% of all hit-and-run accidents involve a parked car.
If the driver left their insurance information, you can file a third-party claim directly with their insurance for the damage done to your vehicle.
If it was a hit-and-run, you can file a first-party claim with your own insurance to cover the costs of repairing the vehicle.
As with any insurance claim, regardless of whether you’re filing under your own insurance policy or someone else’s, you should be sure to take as many photos of the damage as you can, and include in the report the date and time when you noticed the damage, as well as where the car was parked.
You might also want to file a police report so the police can investigate and try to find the driver at fault.
Get Insured Before It’s Too Late
While it might be tempting to hit the road with nothing more than your fingers crossed and a prayer that you don’t get into an accident, it’s not worth the risk. The cost to repair a vehicle can quickly reach thousands of dollars, and if your car is totaled, you don’t want to get stuck paying for a new car all by yourself.
Better to make sure you’re covered. Not only does it bring you peace of mind, it’s also the law.
Get a free quote today so you can drive with peace of mind.