Although car insurance is required in all 50 states, it is not the only reason to have it. An accident can cause thousands of dollars worth of damage. Not to mention the medical bills and fines. Having adequate car insurance coverage will protect you from having these expenses borne by others. Many people find themselves in an unfortunate situation where they are involved in an accident and have to file a claim. There are steps you can take to make sure your car insurance claims get approved. First, make sure you understand everything in your policy.
1. Liability The basic insurance coverage covers third-party damages. If you are involved in an accident with another party, liability insurance covers you. These details will ensure that you have the right coverage.
Ensure that you have the legal permission to drive the vehicle before you get behind the wheel. Your insurance policy will cover the vehicle, even if it is not yours.
b) Get complete information from the other party regarding their insurance immediately following an accident.
c) Gather evidence at the accident site in the form photographs and witnesses without delay, so that it is clear that the other party caused it.
Although liability is the minimum requirement in some states, it’s advisable to get collision, comprehensive and Underinsured motorist (UIM), coverage. Uninsured motorist (UM) coverage is also recommended. Because liability alone won’t pay for damage to your car or yourself, If the other party is at fault but doesn’t have insurance, you will need to pay for the damages unless you have sufficient coverage. Some states require UIM and Personal Injury Protection. Uninsured motorists and underinsured motorists coverage covers damages to your vehicle that are caused by an un/underinsured person. PIP covers medical expenses, regardless of whether you were at fault for an accident. In Pennsylvania, the minimum requirement for car insurance is $5000 of PIP coverage.
Comprehensive insurance is available if your car is damaged by another vehicle or stationary object. This includes damage not caused by collision. You should carefully read your policy as it may contain clauses that say you are not covered for damage caused by animals, flood, or other acts. Comprehensive coverage can be purchased if your car is taken. Your company could deny your claim if your vehicle was stolen or you don’t report it to the police right away. Before signing papers, be sure to check for such clauses in your comprehensive policy.
Car accident claims can be made by those whose car insurance covers collision even if they are not at fault. Collision also covers damage caused by a collision with an inanimate object, such as a pole. Your claim could be denied if an unauthorized person was driving the car at the time of the accident or if the number of passengers in the car exceeds the number of seatbelts. These eventualities can be avoided by understanding the limitations of your car insurance and following the rules.
You should also remember these things to make sure your insurance company approves car accident claims.
1. Don’t withhold any information. Your insurance company could reject your claim if it discovers that you have lied to them, withheld information or otherwise misrepresented your situation. In this case, your insurance premiums would be null.
2. Keep track of all claims, receipts and paperwork related to your car insurance.
3. Before making any modifications to your vehicle, check with your insurance company and let them know if you do. Insurance companies often charge extra for or refuse to cover certain modifications.
4. Instead of going for the lowest-priced company on the market, choose a trusted and reputable auto insurance company. Your insurer should be able to pay you if you file a car accident claim.
5. Don’t skimp on your car coverage. You will not be able file a claim for car accidents if your policy does not cover the damages.
You have the right to file a complaint with the State Insurance Commissioner if you feel your claim was denied. In your letter to your State Insurance Commissioner, make sure to include a copy of the denial from the insurance company. Also, keep in mind that you are required to receive the written proof by your insurance company.
You run the risk of not reading your policy or being honest with your insurer. In the end, you will be responsible for the damage and may have to pay regular insurance premiums. You are buying car insurance to have peace of mind, and the assurance that you won’t lose anything in the event of an accident.
Bethany Collins, a mother of two, lives at home with her husband and works remotely. She is a voracious reader who loves to keep up with the latest topics in personal finance. She is a specialist in car insurance, and spends her spare time writing about topics related to classic and modern car insurance.