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Filing Your Automobile Insurance
Claim
Every year
millions of consumers file claims with their insurance agents and insurance
companies. The trauma of an auto accident or theft is stressful enough
without having to worry about your insurance claim. The following
information, prepared by the Independent Insurance Agents of America, is
designed to help you understand the claims process. Your independent
insurance agent will be there to ensure your claim is handled promptly and
fairly.
Two Basic Types of Claims
There are two
basic types of claims. The first involves loss or damage to your automobile.
The second type is a liability claim, which arises when someone else suffers
an injury or damage to his or her property because of something you did or
did not do. For example, if you run a stop sign and hit another vehicle, you
could be liable for the damages to that vehicle and any injuries that may
have occurred. Liability claims may result in a lawsuit against you. To
cover these two key areas, most auto policies subdivide the coverage into
the following categories.
Auto liability
covers damage to property of other people and injuries to the people.
Collision covers damage to your own vehicle.
"Other than Collision" or "Comprehensive" coverage pays to repair
damage to your car caused by fire, theft, vandalism, natural disaster or
similar events.
Medical payments, termed "good faith" coverage guarantees immediate
medical payments for you, your passengers and other parties involved in the
accident, regardless of who is at fault. The point is to help someone who is
injured get the necessary medical attention and deal with the issue of fault
and insurance later.
Uninsured and underinsured motorists coverages protect you if you are
injured in an accident with others who themselves do not carry enough
insurance or have no liability insurance.
Additional Coverage's
There are
additional coverage's such as towing and temporary replacement vehicles
available for your auto insurance policy. In fact, just about any
contingency can be covered by adding clauses and conditions known as
endorsements or riders to a standard policy.
After an Accident
For several
reasons, the first conversation you have should be with your independent
insurance agent. Chances are your policy includes a stipulation that the
insurance company be notified promptly. Conversations with others about the
situation can inadvertently waive some of your rights in the case.
If you do suffer property damage or injury or incur liability, it is time to
file a claim. You will be asked to fill out a claim form -- the format
document on which you request benefits to be paid according to the terms of
the policy. Be complete and supply as much detail as you can and be
truthful. All this will help your adjuster do his or her job and therefore
speed the process. To support your claim, it may be necessary to supply the
insurance company with some documentation such as a "proof of loss" form,
auto repair and medical bills, and a copy of the police report. Be sure to
keep a copy of your claim and any associated paperwork for your records. You
may need to refer to it in the future.
What is a Deductible?
When you file
a claim for property or loss, the payment made by the insurance company is
subject to a deductible. Basically, when you purchase y our insurance
policy, you agree to pay the first specified amount of any damage as your
share of the cost of repair or replacement. The insurance company adjusts
its rates accordingly, charging less for those who agree to pay a larger
first share--or deductible. For example, if your car should sustain damages
costing $2,000 to repair and you have a deductible of $250, you would pay
$250 and the insurance company would pay $1,750.
What is a Claims Adjuster?
Once you have
reported your claim to your agent, he or she will contact the claims
adjuster of your insurer--usually within the hour. The adjuster will begin
the settlement process, the length of which will depend on the cooperation
of the other party, if any. While some claims are relatively easy and
straightforward, others are more complicated. Your adjuster is charged with
investigating the claim and then making a recommendation to the insurance
company. The recommendation can be to accept the claim and pay the full
amount requested, accept part of the claim and make a partial payment, or
refuse the claim and make no payment. The insurance company will then make a
decision regarding your claim and notify you of its final decision.
About Second Opinions
The amount of
compensation offered can vary according to the adjuster analysis of your
claim. Keep in mind, if you feel it is too low, you do not have to accept
the first amount offered. While you may have to do some research to prove a
higher payment is valid, it may be worth it. Your independent insurance
agent should be able to assist you in reaching a fair settlement.
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