Are
You Choosing or Filing a Car insurance Claim?
Here is a Step by Step Guide.
Here is a five step guide to auto insurance
shopping. Why five steps? Because, if you
want to get the best coverage for your dollar,
shopping smart for your car insurance is
the way to do it. Also, car insurance is
one of the top ways to chisel down your
insurance budget if you know how to do it
right. Let's start with deciding what car
insurance coverage you need:
1. What Kind of Coverage Do You
Need?
Before calling the insurance company and
getting your insurance quote, take the time
to decide what kind of coverage you need.
In every state you have to have at least
liability coverage. But, you need to decide
if you would like to add these additional
car insurance coverages:
Comprehensive
Insurance Coverage
Definition:
Comprehensive Insurance Coverage is insurance
coverage that helps pay for losses to an
insured car due to fire, theft, or other
losses that are not the result of a collision
as stated in the insured's policy. An insurance
deductible can apply depending on the insured's
requests at the start of the policy. In
most states this is an optional coverage
and is not usually a required coverage.
(note: Colliding with an animal falls under
comprehensive insurance coverage)
Examples: Tina's car was
hit by a rock while she was driving. She
contacted her insurance company and they
reassured her the loss would be taken care
of by the comprehensive insurance coverage
she selected when buying her policy although
she would need to pay her $500 insurance
deductible first.
Collision
or Accident Insurance Coverage
Definition:
Collision or Accident Insurance Coverage
is coverage that pays to repair or replace
your car after a car accident or collision.
A deductible can apply depending on the
insured's requests at the start of the policy.
In most states insurance collision or accident
coverage is an optional and is not usually
a required insurance coverage.
Examples: After the car
accident, Janice reported it to her insurance
agent. Her agent said the claim would be
covered by the collision or accident insurance
coverage she had requested at the start
of her policy.
If you choose comprehensive and collision
coverages, you will need to decide what
deductible amounts you would like. And,
it is important to know what policy limits
your state requires so that you can decide
what policy limits you would like. Other
coverages you may want to consider are:
Emergency Roadside Service
What
is Emergency Roadside Service?
Almost
all insurance companies offer emergency
roadside service. Sometimes they fall under
different names such as a motor club or
roadside assistance. Basically, these plans
can give you help for a variety of roadside
problems by calling one number.
What
Roadside Problems do the Roadside Services
Usually Cover?
All
plans are going to be different in one way
or another, however, most will cover the
costs of services to fix a flat tire, getting
your keys out of your locked car, running
out of gas, jump starting your vehicle,
or getting a tow truck. Some plans will
also provide you with an arrest bond certificate
(this will help you if you get arrested
due to a traffic related violation) or trip
interruption benefits (this would be a certain
amount for meals, lodging etc. if you are
in an emergency vehicle situation a certain
distance from home).
Who is Covered Under My Roadside
Assistance Plan?
You,
your spouse, and your children who live
with you and are legally eligible to drive
are covered under one plan. Your coverage
would cover you driving the car you own,
lease, rent or borrow as long as it is not
a commercial vehicle.
It
is Worth the Extra Cost?
Yes.
The extra cost is very minimal and provides
a lot of services that can be of a great
benefit in an emergency. Be sure though
that you don't already have these coverages
through another provider such as AAA.
Gap
Insurance For That New Car
What if an accident occurrs soon after taking
your brand new wheels off the lot? You have
full coverage insurance, right? So, you're
covered....maybe not.
When
you drive your new car off the lot, the
value of your vehicle can drop drastically,
sometimes as much as 20-30%. Take for instance
you pay $27,000 for you new vehicle and
have an accident a month later. You probably
have only made at the most one payment and
if you did not put any money down your loan
amount is still close to the $27,000 purchase
price. Unfortunately, even with full coverage,
which includes comprehensive and collision,
you will only receive the market value of
your vehicle which could be as much as 20-30%
lower than the purchase price.
That
means you may be stuck paying that 20-30%.
On a $27,000 car, just a 20% depreciation
would be $6,000! That amount could be more
if you financed your taxes and license into
your loan. Fortunately, you may already
have Gap insurance with your current insurer,
which would insure you for the difference
between your loan amount on the car and
the actual market value of the car. However,
not all insurance companies offer Gap insurance.
2. Choosing the Right Insurance
Company
When
you are ready to select your insurance provider,
besides just looking for the best car insurance
premium, you will want to take some time
to research what insurance company you want
to go with by learning about their financial
strength. Another important aspect of choosing
your insurance provider is knowing if and
how they will use your credit score to determine
your rate. Take the time to research different
companies and then make a list of the providers
you are interested in contacting for an
insurance quote.
3.
Making that Call
When
you have your list of selected car insurance
providers you are ready to start calling
around to search for the one who can give
you the best deal. It is important to have
certain paperwork handy, such as your drivers
license number. In addition, having a list
of discounts you may be entitled to can
save you some extra money.
4.
Understanding Your Car Insurance Policy
Now
that you have your car insurance policy,
do you understand what it means? Did you
get what you paid for? It is important to
know how your car insurance policy works
and how it can work for you.
5.
Filing a Car Insurance Claim
The
odds are that someday you WILL have to file
a car insurance claim, so it is important
to learn some things before the accident
comes. Learning what things you need to
do when you have an auto accident can help
the claims process go much smoother.
5
Steps to Filing Your Auto Insurance Claim
1.
Evaluate whether or not you should file
a claim
Did
you know that just by calling your insurance
company with a question about possibly filing
a claim it is often recorded on your insurance
record? It is important to keep your insurance
record clean and one way is deciding whether
or not you should file a claim. It doesn’t
matter if the accident is your fault or
not, you should ask yourself first if you
can pay for the damage. Basically, if you
can pay for it yourself without financial
hardship, don’t file the claim.
2.
Fill out your What to do After an Auto Accident
Worksheet
This
worksheet, which when you click on the title
is provided for print-out, will help you
keep track of the information you will need
to file your auto insurance claim. It is
important to get every detail of the accident
documented and to try to find witnesses
that would be willing to talk to your insurance
company to back-up your story.
3. File the claim ASAP
You
will want to file the claim as soon as possible
with your insurance company. Even if it
is not your fault, your insurance company
will handle the claim process as your advocate.
4.
Be prepared for a possible call from the
other insurance company
If
there is a dispute between the two parties
in the accident, you may get a call from
the other driver’s insurance company
asking for your version of what happened
at the accident scene. If this happens make
sure you document everything you say and
the name of the customer service agent you
talked too.
5.
Lastly, get your car fixed
If
you had body damage to your vehicle, this
is when you will finally get it fixed. After
your claim is approved, you will more than
likely get a call from your insurance company
about sending an insurance adjuster out
to assess the damage or asking you to send
your car to a pre-approved shop to get it
fixed.
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