Filing a Claim

• The first step in any insurance payment process is filing a claim. In some cases you, as the policyholder, need to file a claim yourself. This is the case with auto insurance and homeowners insurance, since the insurer has no way of knowing that you have experienced an accident or fallen victim to theft. In other cases, such as a medical emergency, the hospital or doctor's office may file a claim for you. In either case, the claim lets the insurance company know the cost to you and what services are needed or have already been performed.
  
  

Review

• Once your insurance company receives a claim, it will begin reviewing and processing the payment request. This may involve a simple cross-check of the documents you submit with the claim, such as a police report in the event of a car accident or the doctor's bill for a health insurance claim you file yourself. In cases of more expensive or suspicious claims, insurance companies can dispatch investigators who ensure that the claims are valid and fall within the policy guidelines. Insurance fraud is a major crime and policyholders who file false claims are subject to fines and jail time. In general the review period for basic insurance claims takes several weeks.
  
  

Payment

• Once your claim has been processed, you'll receive a check from your insurance company. If the payment amount is based on an estimate, as with a car repair, you may be able to request more money once you receive a bill for the full cost of repair. You'll also be responsible for covering the portion of the cost that falls within your deductible. For example, if you have a health insurance policy with a $500 deductible and require $3,000 worth of medical care, your insurance will send you a payment for $2,500. Some insurance payments come as regular installments. This is the case with disability and unemployment insurance benefits.
  
  

Rates

• When you receive an insurance payment, your insurance company may take the opportunity to review your claim history and adjust your rates. For example, if you cause a car accident and your insurance pays for damage to your vehicle or someone else's car, you can expect to lose any good driver discounts you receive. Rate increases are based on the value of your claims and how often you make claims. This means that, in the event of minor problems, it may be more beneficial to pay out of pocket and absorb the cost yourself rather than requesting an insurance payment and seeing your rates increase for years to come.