A car accident can turn your life upside down in a matter of seconds. Between vehicle damage, painful injuries, medical appointments, and lost income, it is natural to want the fastest possible solution. Many accident victims assume that filing a claim with their own insurance company is the easiest and safest route. After all, you have paid premiums for years and expect your insurer to protect you when you need help most.
However, using your own insurance after a car accident is not always in your best interest.
While there are circumstances where your policy can provide valuable benefits, relying on your own insurance company too soon can create complications, increase your premiums, and reduce your ability to recover full compensation. Insurance companies—even your own—are businesses focused on minimizing payouts.
At Arshakyan Law Firm, our experienced Los Angeles personal injury attorneys help accident victims throughout Southern California understand their rights and maximize the value of their claims.
Understanding the Different Types of Insurance Coverage
Before deciding whether to file a claim with your own insurance company, it helps to understand the types of coverage that may apply.
Liability Coverage
California law requires drivers to carry liability insurance. This coverage pays for injuries and property damage caused by the insured driver to others.
Collision Coverage
Collision coverage pays to repair your vehicle regardless of fault, but you must pay your deductible.
Medical Payments Coverage (MedPay)
MedPay helps cover immediate medical expenses for you and your passengers.
Uninsured/Underinsured Motorist Coverage (UM/UIM)
This coverage protects you if the at-fault driver has no insurance or insufficient limits.
Rental Reimbursement Coverage
Pays for a rental vehicle while your car is being repaired.
Each type of coverage serves a specific purpose, but using them strategically is important.
California Is an At-Fault State
California follows a fault-based insurance system. This means the driver who caused the collision is legally responsible for all resulting damages.
Those damages may include:
- Emergency medical care
- Hospital bills
- Physical therapy
- Lost wages
- Future treatment costs
- Vehicle repairs
- Pain and suffering
- Emotional distress
Because the at-fault driver is responsible, the primary claim should usually be made against that driver's insurance company.
Why Your Own Insurance Company Is Not Always on Your Side
Many people assume that because they are customers, their insurer will automatically act in their best interest.
Unfortunately, insurance companies profit by paying as little as possible. Even your own insurer may:
- Question the severity of your injuries
- Delay payment
- Require recorded statements
- Pressure you to settle quickly
- Raise your premiums after the claim
Your insurer may be contractually obligated to provide certain benefits, but that does not mean they will maximize your recovery.
Filing a Claim Could Increase Your Premiums
One of the biggest drawbacks is the possibility of higher insurance premiums. Even if the accident was not your fault, your insurance company may still consider:
- Frequency of claims
- Cost of payouts
- Future risk factors
This can lead to premium increases at renewal.
Example: A Los Angeles driver rear-ended at a red light used collision coverage to repair her car quickly. Her insurer paid $8,500, less her $1,000 deductible. Although she was not at fault, her annual premium increased by $700.
You Must Pay Your Deductible Up Front
When you use collision coverage, your insurance company subtracts your deductible. If your deductible is $1,000, that amount comes out of your pocket immediately.
While your insurer may later recover it through subrogation, reimbursement can take months, or may never happen.
Your Insurer May Seek Reimbursement Through Subrogation
After paying your claim, your insurance company may pursue the at-fault driver's insurer to recover what it paid.
This process is called subrogation.
While subrogation can eventually reimburse your deductible, it can delay your financial recovery and complicate settlement negotiations.
You May Receive Less Compensation for Vehicle Damage
Insurance companies often rely on software and preferred repair networks that prioritize cost savings.
This can result in:
- Lower repair estimates
- Use of aftermarket parts
- Disputes over diminished value
- Pressure to accept total-loss valuations that are too low
Your Medical Claim May Be Impacted
Using MedPay or health insurance can help cover immediate expenses, but these providers may later seek reimbursement.
That means part of your settlement may need to be repaid to them.
An experienced personal injury attorney can often reduce those reimbursement claims and increase your net recovery.
Quick Repairs Can Hurt Your Injury Case
When you rush to handle everything through your insurer, the focus often shifts from bodily injury to property damage.
Insurance adjusters may later argue:
“If the accident was serious, why did you settle the car damage so quickly?” This tactic can be used to minimize your injury claim.
Recorded Statements Can Be Used Against You
Your insurer may ask for a recorded statement “just to process the claim.”
Seemingly harmless comments can later be used to dispute liability or to challenge claims of injury.
For example:
- “I’m feeling okay.”
- “I didn’t see the other car.”
- “I only have a little neck pain.”
These statements can significantly reduce the value of your case.
You May Lose Leverage Against the At-Fault Driver
When your insurer steps in, it may make strategic decisions based on what benefits the company rather than what benefits you.
This can reduce your negotiating power.
Your Claim Could Be Marked as a Loss
Even a non-fault claim becomes part of your insurance history. Future insurers may view you as a higher-risk customer.
You May Settle for Less Than You Deserve
Many accident victims focus on repairing the car and overlook damages such as:
- Pain and suffering
- Future medical care
- Lost earning capacity
- Emotional distress
These damages are often substantial.
Case Study #1: Rear-End Accident on the 405 Freeway
A client was rear-ended in Los Angeles.
Initial Decision: She used her own collision coverage to repair her BMW.
Problems Encountered
- Paid a $1,000 deductible
- Premium increased
- The repair shop used non-OEM parts
- Vehicle diminished value ignored
Legal Intervention: Arshakyan Law Firm pursued the at-fault driver's insurer.
Result
- Full deductible reimbursement
- Additional diminished value payment
- Compensation for neck and back injuries
- Total settlement exceeding six figures
Case Study #2: Uninsured Driver in Orange County
A driver suffered a fractured wrist after being hit by an uninsured motorist.
Best Use of Own Insurance
In this situation, filing a UM claim was essential.
Result: The client recovered compensation for:
- Medical expenses
- Lost wages
- Pain and suffering
This illustrates that using your own insurance can be beneficial when strategically necessary.
When It Makes Sense to Use Your Own Insurance
There are circumstances where using your own policy is appropriate:
- Uninsured Motorist Accidents
- Underinsured Motorist Claims
- Hit-and-Run Collisions
- Immediate MedPay Benefits
- Rental Car Coverage
- Urgent Vehicle Repairs
The key is knowing how to use these benefits without compromising your case.
How Insurance Adjusters Minimize Claims
Insurance companies commonly:
- Dispute liability
- Delay investigations
- Downplay injuries
- Monitor social media
- Request broad medical authorizations
- Offer low settlements
Without legal representation, many victims unknowingly accept far less than they deserve.
Comparative Fault in California
California follows pure comparative negligence.
Even if you were partially at fault, you may still recover compensation.
Example:
- Total damages: $100,000
- Your fault: 20%
- Recovery: $80,000
Insurers often try to assign you more blame than warranted.
Why You Should Speak to a Personal Injury Attorney First
Before filing any insurance claim, consult an experienced attorney.
A lawyer can:
- Review your coverage
- Determine fault
- Communicate with insurers
- Protect your statements
- Calculate damages
- Negotiate aggressively
- File a lawsuit if necessary
Common Mistakes After a Car Accident
Avoid these costly errors:
- Admitting fault.
- Giving recorded statements.
- Posting on social media.
- Accepting the first offer.
- Delaying treatment.
- Signing releases without legal advice.
- Assuming your insurer is fully on your side.
Frequently Asked Questions
Will my rates go up if I use my own insurance?
Possibly, even if the crash was not your fault.
Can I recover my deductible?
Yes, but reimbursement may take time.
Should I use collision coverage?
Sometimes, if repairs are urgent and the other insurer is delaying.
Should I talk to an attorney first?
Absolutely.
The Financial Impact of a Serious Car Accident
A severe crash can result in:
- Tens of thousands in medical bills
- Months of lost wages
- Permanent disability
- Emotional trauma
Choosing the wrong claims strategy can significantly reduce your compensation.
Why Arshakyan Law Firm Makes a Difference
At Arshakyan Law Firm, we know the tactics insurance companies use to protect profits. We fight to recover compensation for:
- Medical expenses
- Lost wages
- Property damage
- Pain and suffering
- Future care costs
Our attorneys represent clients throughout:
- Los Angeles
- The San Fernando Valley
- Orange County
- Ventura County
- Southern California
Free Confidential Consultation
If you were injured in a car accident, do not assume your own insurance company will protect your best interests.
Before filing a claim or accepting any settlement, speak with the experienced Los Angeles personal injury attorneys at Arshakyan Law Firm.
Call 818-650-9985 today for a free, confidential consultation. We Are in Your Corner!