Click here to get this post in PDF
Auto insurance laws vary from state to state and, accordingly, the liabilities also vary. Regardless, of whether you have minimum liability insurance or a comprehensive insurance plan, if met with a car accident, you’d expect your insurer to pay for the losses. After all, that is why insurance policies are put in place.
But the thing is, there’s a lot of information that you might not know when it comes to filing a claim after the accident.
So, keep reading to know more.
How Do Insurance Companies Decide Your Claim?
In most cases, especially where someone is injured, the insurer would demand a copy of the crash report from the police. In addition to this, insurance companies also like to know the extent of damages, and they usually have authorized workshops to consult for the same.
Your insurance company would consider your car’s depreciated value and the cost of repairs. Based on these data, your insurance company would come up with compensation for the losses. Upon careful estimation and assessment, you can either deny the compensation or accept it.
Moreover, your insurance would also depend on the premium you pay for your coverage. Along with, other liability coverage that you opt for in your plan.
What Documentation And Formalities They Need?
The next thing on the list would be the application procedure. Well, submitting a claim isn’t as difficult as it may seem at first sight.
The insurance companies stress highly on improving their customer satisfaction rate. And for this, they go far and beyond the expectations from them.
That being said, when filing for an auto insurance claim, you must submit the original police report and other pieces of evidence along with the application. You can, of course, read more about in what order these documents need to be arranged for quick processing. Nonetheless, insurance companies only demand more documents when somebody is injured during the crash.
In case, someone is injured, you may also need to attach medical bills with your application. However, it is noteworthy that this is only required if you or the at-fault party has liability coverage.
Processing The Insurance Claim…
After you’re done with filing for the insurance claim, the next thing you ought to be doing is waiting for it to be processed. Usually, it only takes a week or two for the insurance company to process your request. However, it also depends on various other factors.
For example, if there are casualties during the crash, then it may take a little longer to process the claim. Likewise, if the damages are too high, your insurer may also total your car and pay you its value at the time of application.
It needs no mention that insurance policies are meant to help the insured financially in a time of need. However, there are several clauses and conditions that most insurance buyers don’t really go through.
Financial experts recommend highly, that you should go through the offer document carefully when buying your insurance policy. Besides, you should also go through the Terms of Service document from your insurer. There are several expenses that your insurance company won’t pay for.
For example, glass parts, plastics, and consumables like lubricants are usually not covered under auto insurance. So, you need to be sure about how much you can expect your insurer to be paying for the damages you’ve incurred.
Though every state in the USA has mandated at least third party liability insurance for every motor-vehicle owner, it is not necessary that you should buy the same only. In fact, it is recommended that you include medical and personal property coverage too, into your auto insurance.
That being said, it is also recommended that you consult with your insurance agent about which plan suits your needs the best. It is better to pay a little more in premium rather than paying heavy costs for damage repairs and medical bills.
You must understand that failure to comply with minimum federal or state transport norms can also get you into legal trouble. It is not only a criminal offense to drive without insurance, but also can be financially troubling in the longer run.
In the end, the decision rests on you. As you now know how your insurance company would entertain your claim and help you, we recommend that you buy one immediately, if you don’t have it yet.
You may also like: How to React If You’re Involved In A Car Crash
Image source: Shutterstock.com
