Can My Car Insurance Company Settle My Claim Without My Consent?

When you are involved in a car accident there is a lot of paperwork to fill out. The first step is to file a police report. The police officer that handles the accident report will then provide each of the individuals involved in the accident with a copy of the report that is filed. This police report is then provided to the car insurance providers.

A car insurance company will look over the police report and fault of the accident is determined. If you are found to be the one at fault for the accident it is your insurance company’s responsibility to pay for the damages done to the other vehicle as well as any medical costs associated with personal injury.

If you have comprehensive or collision coverage your insurance company will also help pay for the damages done to your vehicle during the accident.

While this all sounds very straightforward, accident cases can become quite complicated, especially when insurance companies are involved. As an insured motorist you have the right to question the coverage that is being provided to you by your insurance company. However, when it comes to settling a claim, insurance companies often have the right to settle a claim without the insured’s consent.

Do You Have to Give Consent to Settle a Claim

The question that many people have when they are involved in an accident claim is whether or not they have to provide consent to their insurance company in order for the case to be settled. Unfortunately, the answer to this question is a bit complicated as there are certain times where an insurance company has the right to settle a claim without consent, while in other cases consent from the insured must be obtained.gather evidence for claim

Every accident that occurs is different, just as the people involved in the accident are different. There are different causes of vehicular accidents and determining who is at fault for the accident can be complicated. However, there are certain factors that police and insurance companies look at when considering who is at fault and these all come into play when considering how a claim will be settled.

The most important thing to do when involved in an accident is to gather as much evidence as possible. Take pictures at the scene and record any conversations that you have with witnesses and the other driver. This can all be used in a case for liability.

Essentially, each car insurance policy is a contract with a lot of details provided about what the company will and will not cover. This means that the insurance company has the right to determine how much they will pay and to who base on the contract that you have agreed to.

What to Do if You Disagree with Your Insurance Claim Outcome

When it comes to settlements for auto insurance claims, most of the time an insurance company has the right to settle any claim as they see fit. This is based on your particular coverage as well as the coverage of the other person or people that were involved in the accident.

What this means for your rights is that the majority of the time you will have to go with whatever settlement that your insurance company agrees to. However, this does not mean that you have to settle. It is possible to fight the insurance company if you truly believe that the settlement is unfair or unlawful.

Hiring a Lawyer

If you are involved in an accident, whether or not it was determined to be your fault or not, it is important to make sure that you rights are protected. The best way to do this is to discuss the situation with a lawyer.hire a lawyer picture

A lawyer who is licensed in the state where the accident occurred will be able to go over your rights with you. In addition to knowing your legal rights, your lawyer will also be able to make sure that the settlement being negotiated is fair.

When it comes down to whether or not your car insurance company can settle a claim without your consent, the short answer in most cases is yes. In most states insurance companies are provided with the right to be able to settle claims as they see fit. In addition, when you sign a contract with an insurance company you are often agreeing to allow the car insurance company to settle accident cases as they see fit.

However, as a consumer you are provided certain rights and if a settlement does not seem fair, hiring a lawyer to discuss your rights is your best option.

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  Comments: 5

  1. Genitta Pettit


    I wrecked my motorcycle but no one else was involved
    can the insurance company push the shop to fix bike without my ok?
    Our cut the shop a check when bolt is not fixed without contacting me first?

    • Andrew@4AutoInsuranceQuote


      Hi Genitta,
      If you submitted a claim, then yes, the insurance company can do those things. Basically, once you submit a claim, then you are handing over everything to the insurance company. This is part of the insurance policy, which is a legally binding contract. They have a full right to do what they think is best, which usually is also what the person thinks is best, but that’s also where disagreements come into play. If you don’t want the insurance company to be involved, then you can choose to not submit the claim next time, especially if no one else is involved.


  2. 3 years ago a minor incident in front of a hospital.Just to be sure police,fire dept. were called to access the incident. Because of location there were several nurses that stopped to ask person involved if she was all right. Everyone left satisfied that nothing serious was involved. 4 days ago I & my son( age of son at time 52 yrs.old) we were both served at home with a summons regarding said minor incident. The fact that neither of us knew about said claim to our insurance carrier came as quite a surprise. We contacted our family attorney (because summons had other’s attorney’s name),our attorney talked with a Geico representative who subsequently said that the case was settled & a payout of $15,000.00 was made to claimant.

    My question is during the insurance company’s investigation,wouldn’t we have the ability to defend ourselves,to make some kind of statement,shouldn’t at some time have been told that there was even a claim made.What kind of questionable incident could a judgement be made without considering both sides ?Why wouldn’t be be allowed to know if police & fire depts. were questioned ? This appears to be something you would see happen in a 3rd world justice system not in the American legal system. Not a word from our insurance company in 3 years. At 77 years old I thought I was safe to be insured & having the U.S. system have my back,however this situation leaves me with disbelief and extremely nervous as to how safe I really am from the companies I pay to protect me. Respectfully Donna Nardozzi


    • We did not file the claim. At time of incident there was nothing to claim,not even a scratch to her scooter,or son’s auto.Police,fire dept.personel,nurses from hospital walked away after question8ng claimant.I know the insurance company has right to act independent of myself,my big problem is how can they make any determination and pay out anything without us having any knowledge of said claim,or any statement from us about anything. There were extenuating circumstances which of course were not in suposed victims document. Facts,she was driving a scooter in & out of parked trucks.There was construction apparition all around,the lady was morbidly obese,it was obvious that she had pre-existing medical problems because my son saw her at hospital a while later(he goes about every 6 weeks for infusion for his MS condition) when he saw her he asked about her health and her reply was “ I’m just fine”. Regardless of anything shouldn’t we have received something at some time to alert us that a claim was made against us ? Also why are we not privy to knowledge of witness statements, or what their investigation uncovered? Don’t you have the right to defend yourself from any standpoint in this case ? Thank you

      • Andrew@4AutoInsuranceQuote


        Hi Donna,
        It’s not clear what the details of your claim were, but putting that aside, the insurance company does have a full right to settle and pay out claims without involving you. This is because this right is given in the insurance contract, which is a legal document. Once you sign and have a policy in effect, part of the conditions is that the insurance company has full say on what they do in a claim. Most of the time, it’s far cheaper for the insurance company to pay out a small claim, rather than try and fight it and potentially go to court over an accident, although this does happen sometimes. Now, some insurance companies will notify you on things like this, but most will simply take over and pay out the claim.

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