I have personally seen a claim be closed in 3 weeks; from incident to final claims closure.
In reality the claim can take up to 18 months. With a combination of unavoidable delays, intentional delays by a third party and a lack of skilled insurance claims handlers.
A road traffic collision or damage event occurs involving the policyholder's vehicle. This could range from a minor fender-bender to a more serious accident. The policyholder should immediately ensure everyone's safety, call emergency services if necessary, and gather crucial information. This includes taking photos of the damage and scene, collecting contact and insurance details of other parties involved, and noting down witness information. The time, date, location, and weather conditions should also be recorded.
The policyholder contacts their insurance company as soon as possible to formally report the incident. This is typically done via phone, but many insurers now offer online claim reporting or mobile apps. The policyholder provides initial details about what happened, including the location, time, parties involved, and a brief description of the incident. The insurer will assign a claim number and may provide immediate guidance on next steps, such as where to take the vehicle for assessment or repair.
The insurer begins a comprehensive review of the claim. This process involves collecting and analyzing various pieces of evidence. An claims adjuster may be assigned to assess the damage to the vehicle in person. The insurer will collect formal statements from the policyholder, any other drivers involved, and witnesses. They may also request police reports, CCTV footage, or dashcam recordings if available. The goal is to establish a clear picture of what happened, who was at fault, and the extent of the damage or injuries.
The vehicle is taken to an approved garage or chosen repairer for necessary work.
Based on the damage assessment, the vehicle is taken to an approved repairer or a garage chosen by the policyholder (depending on the policy terms). At the repair facility, a detailed inspection is carried out and a repair plan is created. This plan is usually shared with the insurer for approval. Repairs are then scheduled and undertaken, which may take anywhere from a few days to several weeks depending on the extent of the damage. During this time, the policyholder may be provided with a courtesy car or hire car, depending on their policy coverage.
Once all repairs are completed, the vehicle undergoes a quality check to ensure all work has been carried out to a satisfactory standard. The policyholder is then notified that their vehicle is ready for collection. Upon pickup, the policyholder should inspect the vehicle thoroughly to confirm all repairs have been completed as agreed. The garage should provide documentation detailing the work carried out. If a courtesy or hire car was provided, it would be returned at this point.
The policyholder's insurance company compiles a comprehensive breakdown of all costs associated with the claim. This includes repair costs, car hire charges (if applicable), administrative fees, and any other relevant expenses. This detailed 'outlay' is then formally submitted to the third-party insurer for reimbursement. The outlay will typically include supporting documentation such as invoices and receipts.
The at-fault insurer receives the outlay and begins a thorough review process. They will check each item for legitimacy and accuracy, ensuring that all claimed costs are directly related to the incident and are reasonable. This may involve comparing repair costs with industry standards, verifying the duration of any vehicle hire, and scrutinizing any additional charges. If there are any queries or disputes, they will communicate these back to the policyholder's insurer for clarification or negotiation.
Once satisfied with the outlay, the third-party insurer processes the payment. This usually involves a bank transfer of the full claimed amount to the policyholder's insurance company. The payment should cover all agreed costs related to the claim. If there were any disputed items that couldn't be resolved, these might be excluded from the payment, with an explanation provided.
At this stage, the policyholder's insurer confirms that all expenses related to the incident have been fully reimbursed by the third-party insurer. This includes not just the direct costs like repairs and car hire, but also any administrative expenses or fees incurred during the claims process. The insurer will reconcile the received payment against their records to ensure everything is accounted for.
If the policyholder paid an excess at the beginning of the claims process (which is common practice), this amount is now refunded. The refund is processed because the claim has been settled as 'non-fault', with all costs recovered from the third-party insurer. The excess refund is typically processed automatically, but policyholders should check their policy documents or contact their insurer if they're unsure about the process.
The insurance company now finalizes all documentation related to the claim. This involves updating their records to reflect the full settlement, ensuring all parties (including any repairers or hire car companies) have been paid, and that all necessary documents are filed. The policyholder should receive a formal notification that their claim has been closed. This step also often involves updating the policyholder's claims history, which may be relevant for future renewals or if the policyholder switches to a new insurer.
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