How Does an Auto Insurance Claim Work?
Posted on April 17th, 2011
Many individuals are unconcerned about how an automobile insurance claim works until they actually need to file one. The entire claim process can be affected by many different factors, such as the state laws where the claim is made, the insurance provider involved, and the extent of the injury and/or damage. Here is the basic outline of how the claim process works.
Notify the Agent
Do not delay the reporting of the accident to the agent, regardless of who appears to be at fault. The agent will advise on how to proceed with the claim and make recommendations on what the insured should and should not do regarding others involved. Documents will be required such as a police report and repair estimates. Generally more than one repair estimate is required, to get a balanced view of the damage.
Repair Authorization
Do not authorize vehicle repairs until the insurance agent has given instructions to do so. Some agents have a list of “approved” repair shops that must be used, and the deductible amount is something else to be considered as it is usually paid directly to the collision repair shop in order to pick up the repaired vehicle. Ask all repair estimate providers about the guarantee provided on parts and workmanship, including the length of the warranty.
Policy Confirmation and Adjuster Evaluation
The insurance agent will verify that coverage was in affect and that the incident is covered. A claims adjuster is usually assigned, who will evaluate the damages to the vehicle. This figure is used to compare to auto repair quotes received by the shop, to ascertain they are in line with industry standards and aren’t inflated. Money can sometimes be saved by opting for generic rather than name brand parts, and by using an agent-recommended collision repair company.
Total Vehicle Loss
If the vehicle is considered totaled and beyond repair, the insurance company will reimburse the insured for the automobile’s value, which is usually in line with Blue Book listings, minus depreciation. The deductible comes off of that amount, and there are other considerations regarding worth of the vehicle. These may include the condition of the tires, the odometer reading, and the overall condition of the vehicle at the time of the accident.
Possible Lawsuit
The insurance company will defend the insured within the coverage limits in the event of a lawsuit, and much has to do with whether the accident occurred in a fault or no-fault state. If the insured is sued for $500,000 and only has $250,000 in coverage, the insured will be liable for the other $250,000. In that event, the insurance agent will most likely advise the insured to retain legal counsel to defend them for that portion of the lawsuit.
It is hopeful that a day does not arise when a claim becomes necessary for an insured individual, but unfortunately things do happen beyond our control and that is the purpose of having insurance. The best advice if a claim becomes necessary is to work closely with the agent so the process goes as smoothly as possible.
This content was created by http://BestCheapAutoInsurance.com
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Tags: Claim Work, Insurance Claim, Insurance Claim Work, Work
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