How to make an insurance claim

You might not think about it often, but understanding how the insurance claims process works is important, just in case you ever need it. Life throws curveballs all the time. Maybe you’ve been in a fender bender, there's water in your basement due to a recent storm, or you wake up to find your business’s window smashed overnight. So, what do you do? How do you file a claim? And when should you maybe handle the damage yourself? Let’s break it down and answer these questions (and more).

Filing an insurance claim: step-by-step guide

Something’s happened, and it’s time to file an insurance claim. Letting your insurance provider know is a necessary step if you want to get compensation for any damage. Whether you’re a pro who just needs a quick refresher or this is your first time navigating the claims process, don’t worry—we’ve got you covered with a detailed guide below:

1. Filing a police report

This step will depend on the situation. For example, if you were in a car accident, sometimes you must report the car accident by filing a police report, and failing to do so can result in serious fines. It's also important to file a police report for things like theft or vandalism of your car, home, or business. Having a police report can also help your insurance company with the claims process. However, if we're talking about roof or water damage to your home or business, you likely won't need to file a police report for that.

2. Collect evidence for the claim

Whether or not you file a police report, it's important for you to collect evidence for your insurance claim. First, take out your smartphone and start snapping photos and videos of the scene. Take as many photos and videos of the damage as well as any signs of how it happened.

For example, for an auto insurance claim, not only should you take photos and videos of the damage to your car, but you should also record any skid marks on the road, broken glass, or any other property damage, as well as the third party's licence plate, vehicle make and model, and of any injuries you may have sustained in the accident. You'll also want to get any eyewitness statements and the other driver's contact information. This information will help the insurance company determine things like what happened and who was at fault.

3. Review your insurance policy

Next, you'll want to review your insurance policy to get a clear idea of what’s covered and what your responsibilities are under your contract. For an auto insurance policy, certain coverage, like accident benefits, is mandatory, but home and commercial insurance are optional. That’s why it’s important to double-check your policy to see if the situation you’re dealing with is covered. The type of claim you’ll file—meaning the specific coverage you’ll be using—depends on what’s happened. Here are some examples:

• If you're in an at-fault car accident, you'll want to file it under your collision coverage (if you have it)
• If your roof is damaged in a storm, you'll file that under the dwelling portion of your home insurance
• If the window of your commercial business is smashed in, that would fall under your commercial property insurance

If you’re unsure or need help understanding your policy, just reach out to BrokerLink, and one of our licensed brokers can walk you through it.

4. Notify your insurance company

The next step is to notify your insurance company. It’s best to do this as soon as possible after the incident—ideally right away, but no later than seven days afterward. Your insurance agent or advisor will guide you through the next steps in the car, commercial, or home insurance claims process.

For instance, you might need to fill out specific claim forms, like a proof of loss form. They’ll also help you figure out which type of coverage your claim falls under. And if you live in a no-fault insurance province, you'll be able to claim your car insurance claim through your own insurance company to speed up the claims process.

5. Let the insurance adjuster get to work

Once you submit a claim to your insurance provider, they’ll assign an adjuster to handle your case. The adjuster’s job is to figure out if your policy covers the situation and, if it does, how much you’re entitled to receive. For example, for a car accident, they’ll look into whether your insurance covers things like towing, vehicle repairs, legal fees, medical expenses, and more.

As part of their investigation, they’ll review the evidence you provided. They might also reach out with questions or even schedule an in-person visit if needed. Once they’ve gathered all the information, they’ll make a recommendation to your insurance company about whether to approve your claim and how much to approve it for.

6. Get a quote for the cost of any necessary repairs

If the accident caused damage to your car, home, or business, your insurance claim could help cover the cost of repairs. To prepare, it’s a good idea to get a repair quote ahead of time. Your insurance company might suggest a mechanic or contractor, but you’re free to choose anyone you like. You can even get multiple quotes to compare, so you feel confident about your decision.

7. Wait for review

The final step in filing an insurance claim in Canada is waiting to hear back from your insurance provider. They’ll review the information and recommendations from the adjuster and then let you know the status of your claim—usually by phone or email.

8. Receive your payout

If your claim is approved, they’ll tell you the payout amount and how you’ll receive it. These days, most insurance companies use direct deposit, but some may still send a cheque by mail. If you’re happy with the results, you’ll receive your payout, and the claim will be closed. However, if you feel your claim was unfairly denied or the payout isn’t what you expected, you may have the right to appeal the decision.

If you still have questions about the claims process, including: can you cancel a car insurance claim? Or if you're just looking for some claims advice, contact BrokerLink today. One of our licensed insurance advisors would be pleased to answer these questions and provide you with a free car insurance quote.

When to file a claim

Deciding whether to file an insurance claim depends on a few key factors. Here are some things to think about before starting a claim:

• The cost of the damage
• Your deductible amount
• Your claims history
• Whether you can afford to pay for repairs out of pocket
• Losing your claims-free discount

That said, there are certain situations where it’s usually a good idea to submit a claim. We’ll explain it below according to what is being insured:

For a car

Here’s when you can file a car insurance claim:

• A major car accident that caused serious damage to your vehicle or someone else’s
• A collision you caused led to someone getting hurt—whether it’s you, a passenger, a pedestrian, or the other driver
• Your car is damaged in a non-collision-related way, like fire, a falling object, vandalism, theft

For a home or business

Here’s when you can file a claim for a home or business:

• Someone was injured on your property
• Damage from a fire, lightning, or smoke
• Water or flood damage from burst pipes
• Severe weather damage, like flooding or fallen trees
• Other property damage, like vandalism or theft

When not to file a claim

Before filing a claim, it’s important to take a moment to weigh your options. Submitting a claim is a big decision and can have lasting effects, so it’s not always the best move for every little issue. In fact, for minor accidents or events, you might be better off handling things without involving your insurance. Even small claims can affect your premiums or discounts, so it’s worth weighing all the costs before filing. Here are a few situations where you might want to hold off on filing an insurance claim:

• The repair costs are around the same amount as or less than your insurance deductible
• No one was injured, and any property damage was extremely minimal
• The damage was your fault, but you were the only person involved in the car accident, such as if you backed out of your driveway and accidentally hit your fence
• You can afford to pay for the repairs without using insurance

If you aren’t sure if or how to proceed with the claims process, reach out to BrokerLink. We are a trusted and reputable insurance brokerage that can offer you expert claims advice. We can even make a recommendation as to whether it’s worth filing an insurance claim with your provider following an incident or if it's better to handle it on your own.

How long does the insurance claims process take?

The time it takes to complete the claims process can vary depending on your insurance company, but submitting a claim is usually pretty quick—especially if you’ve already gathered all your evidence.

For instance, if you have everything ready to go, filling out the Proof of Loss form and submitting it could take as little as 15 minutes. In most cases, filing a claim shouldn’t take more than an hour.

After that, the timeline can vary. It depends on how quickly your insurance company assigns an adjuster to your file and how long the adjuster takes to review and investigate your claim. Generally, the whole process is completed within 30 days, though it may take longer to receive your payout. To get a more accurate idea of what to expect, it’s always a good idea to ask your insurance provider directly.

Common types of car insurance claims

Car insurance claims are very common. That's likely one of the reasons why car insurance is mandatory in Canada. Here are some of the most common types of car insurance claims:

• Single-car collisions
• Rear-end collisions
• Multi-car collisions
• Stolen car/theft
• Vandalism
• Damage sustained while parked
• Windshield or window damage
• Back-up accident
• Hail damage

Common types of home insurance claims

Home insurance, along with tenant insurance and condo insurance, is optional in Canada. Nevertheless, it's essential to have because you never know when you're going to need it. Here are some of the most common types of home insurance claims:

• Theft
• Vandalism or property damage
• Water damage from bathrooms, dishwashers, and washing machines
• Burst pipes
• Severe weather damage
• Flood or sewer backup damage
• Kitchen and electrical fires
• Fire and smoke damage from unattended candles or cigarettes
• Roof damage
• Liability claims for third-party injuries or property damage

Common types of commercial insurance claims

Like home insurance, commercial insurance (except for commercial auto insurance) is optional in Canada. Here are some of the most common types of commercial insurance claims:

• Theft
• Vandalism or property damage
• Liability claims for third-party injuries or property damage
• Collisions
• Severe weather damage
• Employee injuries

Need to make a claim or get insurance? With BrokerLink, it’s quick and easy! Whether you’re filing a claim or shopping for coverage, our friendly experts are here to guide you every step of the way. Simply call us, visit our website, or come into one of our branches. Get started with BrokerLink today and experience hassle-free insurance you can rely on!

[phone]

How claims impact insurance rates

A common question for many is whether filing an insurance claim will affect their premium. The short answer is yes—claims can impact your rates, especially if you file multiple claims. However, the circumstances of the claim play a big role in determining whether or how much your premium might change. Details will be discussed below, depending on the type of insurance premium:

Car insurance premium

If you’re found at fault for a car accident, your premium will likely go up significantly because your risk as a driver increases. This is especially true if the accident involves illegal behaviour, such as reckless driving or driving under the influence of drugs or alcohol. In those cases, not only could your premium rise significantly, but your policy might also be cancelled. That's why safe driving is often rewarded.

Basically, if you’re in an at-fault accident, it can affect your rate for up to six years, as that’s how long it stays on your driving record. The impact on your premium depends on how many claims you've filed. For example, if you have multiple accidents within a short period—say, less than five years apart—your rates could rise more significantly. You could see your rates increase by 25% to 50% or even more, depending on the circumstances.

However, if the accident wasn’t your fault, your car insurance premium might not increase at all. Similarly, if you have accident forgiveness as part of your policy, your premium could remain unaffected even if you caused the accident.

Home and commercial property premiums

Think carefully before filing an insurance claim. Every claim you make gets added to your insurance record and can lead to higher premiums. These claims stick on your record for several years, keeping your rates elevated during that time.

For example, a single home insurance claim could increase your premiums by 10% to 20%, and filing two claims within a certain time frame might bump them up even more. Larger or more serious claims can have an even bigger impact. It’s always a good idea to consider the long-term costs before deciding to file.

Denied insurance claims

When filing an insurance claim, we all have the same goal in mind: for the claim to be approved so that we can receive an insurance payout. However, the reality is that insurance claims get denied all the time, and there are several reasons for this. We outline a few of the main reasons for denied insurance claims below:

Non-payment

Non-payment is perhaps the most common reason that an insurance company will deny an insurance claim or even cancel your policy. Non-payment, as the name suggests, is when you fall behind on your insurance payments. Even missing one payment is enough to put you at risk for non-payment. An insurer typically won’t cancel your policy after a single missed payment, but they may send you a warning.

If you know that you are struggling to keep up with your insurance payments, reach out to your provider directly to see if you can work out an alternate payment plan.

Remember that car insurance is a legal requirement in Canada, which means if your policy is cancelled, you won’t be able to drive until you obtain new insurance coverage.

Misrepresentation

Misrepresentation is a second reason that an insurance company might deny your insurance claim. If you file a claim but the insurance adjuster discovers that you provided false or misleading information in your claim, they may not only deny it, but they could also cancel your policy.

Not enough information was provided

If you don’t have enough information or evidence to support your claim, it can make it harder for your insurance company to, say, determine who’s at fault after a car accident. Missing details, like the other driver’s information, medical receipts, repair invoices, or photos from the scene, can slow down the process and even impact the outcome.

That’s why it’s always a good idea to gather as much information as possible right after an incident. Taking photos, getting contact details, and keeping all related receipts can make the claims process smoother and help ensure you get the coverage you’re entitled to.

Fraud

As you likely already know, insurance fraud is a crime, and yet it remains a serious issue in the insurance industry. If you provide fraudulent information in your claim about what led to the incident, and the insurance company finds out, they will reject your claim.

Criminal acts

As mentioned above, if you are found to have committed an illegal act at the time of the incident (e.g., speeding, driving under the influence, or driving with a suspended licence for a car insurance claim), your insurance company is within its rights to deny your claim.

Improper use

Lastly, this is for home and car insurance. Personal car insurance and home insurance do not cover business use. This means that if you are using your car for business use, you must have commercial auto insurance or a business use endorsement added to your personal car insurance policy. The same goes for home insurance. If you are using a portion of your home as space for your business, you must add a business use endorsement to your home insurance policy. Otherwise, any accidents or incidents that occur with your car or home while using them for business purposes will not be covered.

For example, if you got into an accident while delivering products to a client using your personal car and tried to file a claim, the insurance provider would likely deny your claim. However, if you have a commercial auto insurance policy or a business-use endorsement, the claim would need to be filed under either of these.

What to do if your insurance company denies your claim

What should you do if your insurance company denies your claim? Start by finding out why they said no. Then, see if you can gather additional evidence to support your case. The more details you can provide, the stronger your appeal will be. Here's what you need to do:

Review your policy

If your claim is denied or the payout seems insufficient, don’t panic—start by gathering all the relevant information from your insurer, broker, and adjuster. Request any documentation related to your case, including your policy details, the adjuster’s report, and the denial letter.

Take time to review these documents carefully to pinpoint any specific issues, such as exclusions or coverage limitations that might be behind the dispute. If certain legal terms or clauses are unclear, don’t hesitate to ask for clarification.

Strengthen your claim

Make sure you’ve submitted all the necessary proof of loss evidence to your insurance adjuster, including an inventory list if applicable. Adding extra materials like photos, videos, witness statements, service receipts, or even written promises from your adjuster can help strengthen your case and potentially change your insurance provider’s decision.

If you're dealing with a property insurance claim and the damage is significant, consider hiring an independent appraiser for a second opinion. While there is a cost involved, an independent appraisal could help you recover thousands more in the long run, making it a worthwhile investment for serious claims.

Resubmit your claim

Once you’ve gathered all the additional information and evidence, it’s time to submit a new claim to your insurance company. Be sure to include everything old and new that you’ve collected, like photos, receipts, and appraisals, to strengthen your case. A well-documented claim increases your chances of getting the resolution you’re seeking.

How to dispute a denied insurance claim

If your revised claim is denied again, the next step is to file a complaint with your insurance company’s ombudsperson or complaints liaison officer—every insurer is required to have one.

Clearly explain the situation, outline the facts, and specify what resolution you’re looking for. Share all the evidence you’ve gathered so far, along with any additional details they request, and keep a record of your correspondence for reference.

Give the complaints liaison officer time to investigate. They’ll review the documentation, speak with your adjuster, and possibly involve their manager. If they decide in your favour, your claim will be paid, and the issue will be resolved. If not, request a final position letter, which outlines the insurance company’s conclusive decision. This letter is essential if you plan to escalate the matter to a neutral third party.

How to appeal an insurance decision

At this stage, you’ve done all you can on your own, and it’s time to bring in a third party for help. Here's what you need to know:

The Insurance Bureau of Canada (IBC)

First, contact the Insurance Bureau of Canada (IBC). They are a national industry association that can review your situation, offer a neutral opinion, and point out any flaws or omissions in your claim that might improve your outcome.

General Insurance OmbudService (GIO)

If IBC isn’t able to help further, they might refer you to the General Insurance OmbudService (GIO). This independent organization works to "provide free and impartial help – independent from the insurance industry – for your home, automobile and business insurance disputes". The OmbudService provides free assistance, assigning you a consumer service officer to negotiate with your insurance company on your behalf. They may also organize adjudication sessions with your insurer. However, their recommendations are non-binding, meaning they can’t force your insurance company to pay.

Contact the insurance regulator

If the OmbudService doesn’t lead to a resolution, your next step is to contact the insurance regulator for your province or territory. For example, if your car insurance is in Toronto, you’d contact the Financial Services Regulatory Authority (FSRA) in Ontario. Regulators can investigate complaints, confirm whether your insurer is licensed, and hold them accountable if they’ve violated regulations.

File a lawsuit

If all else fails, your final option is to take legal action, possibly in small claims court. If the judge rules in your favour, the insurance company will be required to pay your claim and may also cover part of your legal fees. However, keep in mind that lawsuits can be expensive, so weigh the costs and benefits carefully before pursuing this route.

Get in touch with BrokerLink to learn more

The claims process is extremely important, so if you are still unsure about any part of it, reach out to BrokerLink. At BrokerLink, you can speak directly with a licensed insurance specialist who can explain the claims-filing process to you. They can answer basic questions about how the process works, as well as provide advice on the best strategy to employ when filing a claim.

We can also give you tips on how to collect evidence to support your claim and explain the impact that insurance claims have on future insurance rates. If you’re ready to get started, contact BrokerLink today by calling 1-855-451-8748, sending us an email, or visiting any one of our locations throughout Canada—we’re here to make it easier!

[phone]

FAQs about insurance claims

Should I file an insurance claim if my car suffers minor damage?

It depends. If the accident only caused minor damage and you think the repair costs will be less than your insurance deductible, you may want to skip the claim.

How many auto insurance claims can I file each year?

There’s no set limit on how many insurance claims you can file in a year. However, you want to try to keep claims to a minimum. The more you have on your record, the more likely it is that your insurance premiums will go up.

What kinds of claims may not be worth it?

It depends on your situation. If the damage is minor and costs about the same as your deductible, it’s probably not worth it. Plus, if you can afford to cover the repairs yourself, skipping the claim might be the better option since filing could impact your premiums when it’s time to renew.

If you have any questions, contact one of our local branches.