If you drive a vehicle, you need auto insurance, even if you do not own the car you drive. Auto insurance protects you and other drivers, and it is a legal requirement in all states. If you have insurance and end up in a collision, you might be eligible to file a claim on your policy. Here are three vital things to know about filing claims on your auto insurance policy after an accident.

The Fault in the Accident and Your Insurance Coverage

Before you can file a claim, you must examine two key facts. First, who is at fault for the collision? Did you cause the accident, or did the other driver? If you are not sure who is at fault, check the police report. The police report should state this information. If you check the report and still do not know, call your insurance company to ask them how to determine the answer to this question.

If you discover that the other person caused the accident, that person's coverage should pay the claim. In this case, you would not have to file a claim with your company.

If you find out that you caused the accident, you should find out if your plan covers the peril. Some plans offer collision coverage, which protects at-fault drivers. If you do not have this coverage, you cannot file a claim on your policy.

How Insurance Companies Handle Claims

With collision coverage, you can receive compensation for damages from accidents you cause, but you might have to pay a small portion of the damages. Your insurance company will ask for your deductible amount before they provide the rest of the compensation. So if you have a $500 deductible, you must pay this, and the insurance company pays the rest.

The Effects of Filing a Claim

Before you file a claim, you might want to find out the effects it will have. Filing claims may cause increases in your insurance rates. They might also cause you to accumulate points on your driver's license. If the damage is not overly costly to fix, you might be better off paying it out of your pocket instead of filing a claim.

Filing a claim is a right you have if you experience a covered peril. If you want to learn more about insurance costs, coverage types, or accident claims, talk to a local car insurance agent today.