Category: Insurance

Mother nature can be unforgiving and causes a great amount of damages throughout the year. Those damages can affect your property and also your vehicle. After such a calamity, which are often called “Acts of God”, you might be left one question: “Does car insurance cover a natural disaster?” Rather than waiting until something terrible happens as a result of unpredictable storms or something similar, it’s best to know now whether such damages are covered or not.

The quick answer is yes, if certain conditions are met. Not every scenario is going to be covered.

Let’s break this down a bit further.

 

Comprehensive Car Insurance Coverage

There is no actual “natural disaster” insurance policy for motor vehicles. Instead, there is only comprehensive car insurance. Most states, like New Jersey, require drivers to have a minimum of auto liability coverage, which will pay for things like another driver’s injuries or damages to property in the event of an accident.

Comprehensive car insurance is optional. You must choose such coverage when you enroll into an auto insurance policy. Unless you choose a comprehensive plan, natural disasters will not be covered. Individual policies are different, though, so what one plan covers may not be paid for in another insurer’s plan.

The good news is that you can add comprehensive coverage onto your current policy, and it usually takes about 5 minutes when done online.

 

What Does Comprehensive Car Insurance Cover?

Most comprehensive policies offer coverage from falling debris, glass, and water damage. That means any damages caused by storms, tornadoes, hurricanes, or even hail storms and floods can be paid for. You may assume that you are safe from certain natural disasters, such as flooding, if you do not live somewhere considered a flood zone.

That said, you never know when flash flooding may occur while you are driving. Flood waters can cause damages to the internal machinery of the vehicle. However, only comprehensive coverage will help with mitigating the costs of car repair. If you live somewhere prone to flooding, pay it safe and get the appropriate amount of coverage.

You may also be covered in the event of a wildfire and earthquake.

 

Important Note

If you live in an area that is subjected to inclement weather, such as high winds, tornadoes, hail, and flooding, you should always ensure well in advance that your policy has comprehensive coverage. Otherwise, you may run into something called a “binding restriction.”

Binding restrictions occur when insurance providers place restrictions on consumers to prevent them from buying or changing plans during a major storm.

This means you cannot wait for the flooding to strike to purchase insurance that will cover your vehicle from damage.

 

What are Other “Acts of God”?

An “Act of God” refers to any damages that are the result of circumstances beyond your control as a driver. Aside from natural calamities like hail and flooding, additional Acts of God include:

• Volcanoes
• Mudslides and landslides
• Sinkholes
• Riots
• Vandalism
• Theft

As long as you maintain comprehensive coverage, you are safe from natural disasters and damages that may be the result of civil unrest. Think of comprehensive insurance as a safety net for anything beyond what happens on the road.

 

My Car’s Been Damaged in a Natural Disaster! What Now?

Now that you know that, yes, natural disasters are covered by comprehensive car insurance, it is time to discuss what happens if your vehicle is damaged by such a calamity. If you have comprehensive car insurance, then you shouldn’t worry about the cost, because it will most likely be covered. Once you are positive the danger has passed, you will need to file a claim with your auto insurance company.

Be sure to take pictures of the damages from every angle or take a video to show the damages. When you make your claim, you will be asked questions about how the damage occurred, so the evidence may come in handy. Do not move the car until the appraisal from the insurance company has been completed. Also, do not attempt fixing any damages before speaking to the insurer.

 

Limitations and Deductibles

Even though you have coverage and can file a claim, there are some things that could limit how much you get for the damages. You will have to pay a deductible, unless your auto insurance policy does not have one. Next, some comprehensive policies will have a limit to the maximum amount of expenses that would be covered. That limit is typically how much your car is worth.

 

Get Your Car Repaired Fast

You should now know that only comprehensive auto insurance will cover natural disasters and other Acts of God. Other forms of auto insurance, such as liability insurance, will not cover expenses from hail or flooding or anything else. If you live somewhere that regularly receives powerful storms, comprehensive auto insurance is a smart choice.

Has your vehicle been damaged in a recent storm? Once you’ve spoken to your insurance company, it’s time to bring it in for repairs. Our professional team is happy to return your car to its proper working condition. Let us know how we can help by filling out the contact form.

Being involved in a car accident that results in significant damage can be worrisome, especially when you know that you must file a claim and deal with an insurance company and an adjuster who will have major input with your claim. When you’re looking for fair compensation, there is the definite possibility of not receiving the full worth of your claim. When you are dealing with an adjuster who will do all that’s necessary to pay out the lowest amount for your claim, what can you do if you disagree with what the adjuster has determined? What if you don’t agree with the insurance adjuster? There are ways to negotiate with your insurance adjuster concerning your claim and here are a few of the value in the negotiation process.

 

Your Vehicle’s Value

When you know the real value of your vehicle, you will be better able to negotiate with your insurance company. After an accident, your vehicle will be under the guise of a claims adjuster who will figure the worth of your vehicle and the cost of repairs. Whatever type of claim you submit, you will either deal with your own insurance company or the other driver’s insurance provider. No matter the claim, the adjuster will unlikely pay out the full worth of your claim, but when you know your vehicle’s value, you should be able to determine whether you are getting a fair deal. In that case, you want to get estimates together to determine your vehicle’s worth. That can be done through sources, such as:

 

• Your own trusted certified mechanic
• Other trusted certified mechanics
• Websites that deal in car value estimates
• Autotrader – Valuation Tool
• Kelley Bluebook – Blue Book Value refers to the value of a vehicle
• Edmunds – generally provides an accurate price for a vehicle through their appraisal tool
• NADA Guides
• VIN Number search valuation

 

Whatever figure an adjuster finally gives you does not obligate you to accept it, particularly after you know the true worth of your vehicle through the estimates you receive from a mechanic, dealership or other sources. If the offer you are given is below the value and estimates, you’ll need to initiate negotiations with the insurance company.

 

Negotiating

Instead of legally contesting a claim amount and making your way to court, you can negotiate with the insurance company. They’re not eager for a claim to end up in court anymore than you are or the other driver.

 

What to Do

You must get the adjuster to explain the details of the offer made. After considering their justification behind the offer, you’ll want to counter what they have said. You want to remember and know that a trained adjuster will come up with insurance legalese and reasoning behind their estimates.

With a counteroffer on your claim, you’ll want to have both high and low settlement figures that you can deal with in your negotiations. The high and low figures should correspond with the estimates you got on your vehicle through your mechanic or internet sources. When you continue on in your negotiations, you’ll want to deal effectively with the advantages and disadvantages of what the insurance company and the adjuster are making with their offer.

 

Your Vehicle’s Value and the Betterment Term

An adjuster can use increased value or betterment of your vehicle as ways to either reduce the payment to you or charge you for any value increase. When you have an older vehicle that requires new parts to repair it, your vehicle will have more value than it did before the accident. If you have increased the value of your vehicle or made it better, it will be difficult to ask for a higher reimbursement on your claim. To counter your insurance carrier’s betterment charge, you’ll want to provide proof that any new parts didn’t add to the value of your vehicle. You may have to get testimony from your mechanic or a witness to prove that additional parts did not increase your vehicle’s value.

 

Your State

The state you live in will determine the value of your claim, as will the person at fault in an accident. Any payouts from claims that involve property damage or injuries will depend on the driver at fault in the accident, and that will hinge on the state where the accident occurred. For example, in the state of California, any payouts are proportional. The amount of fault you had in the accident will determine compensation, whether it was 10 percent or 75 percent.

With negotiations, any insurance company will want to prove that you were more responsible or at-fault in an accident that involves a payout. In countering that, you’ll want to provide as much information as you can with photos, videos, police reports and any witness testimony. Any solid evidence that comes into play will be of proof in your innocence.

 

Other Points for a Higher Claim Value

There are other points in the negotiating process that can be of help in gaining a higher claim value. Emotional factors come into play with simple photos or images of damage to your car and the turmoil it’s taken on your everyday life, particularly when it involves getting back and forth to work, running errands, carpooling for your children or getting an older adult to medical or other appointments.

Most importantly, organize the counter-arguments you want to make. Consider them carefully and make them accessible in notes to yourself or input them to a device for retrieval. Reviewing your arguments will allow you to go forward and press for a settlement that goes above the lower amount that the adjuster originally gave you. If you can’t come to terms with negotiating with an adjuster or simply don’t have the time or the ability, you may want to hire legal help to settle your claim in an amount that’s agreeable to you. Also, proving who was at fault can be a tricky situation, so you may need legal advice with that as well.

 

Settlement Agreement

Once negotiations have reached the point of settlement and all parties involved are in agreement with the final outcome, the offer needs to be confirmed in writing for all parties. The agreement doesn’t have to be lengthy. Just provide sufficient detail in terms that outline the total amount of the settlement and what will be used in the repair process.

When you don’t agree with your insurance adjuster, negotiating with the right strategies is one way to gain a fair settlement; however, if you’re unsure of the procedures involved in the negotiating process, go ahead and fill out the online contact form and a representative will get back to you with the answers you need to negotiate a fair settlement on your claim.

Car accidents have consequences and when you are in one and have to make a property or injury claim, you will deal with insurance companies and auto insurance adjuster. They will ask you questions concerning the incidentals of the accident and will be prepared to do their job, which means they will work to reimburse claims at the lowest limit possible for the insurance company they represent. So, with that in mind, there are certain comments or statements that you should not say or divulge to an adjuster to avoid complications with your claim.

 

Dealing With Adjuster Inquiries

Remember that any trained insurance adjuster will do what they can to save the insurance company they represent as much money as possible through any claim made. You’ll be under the guidance of a trained adjuster from the start of your claim, so you’ll want to know how to deal with any inquiries the adjuster or adjusters have. You’re likely to receive a call from one wanting as much information from you as possible along with your side or rendition of what happened in the accident.

 

Insurance Adjusters

You may deal with one or more auto insurance adjuster with your accident situation, as there are specialty adjusters at different levels with insurance companies. An auto insurance adjuster can be investigators only or work with injury-related cases. They can be negotiators in dealings with attorneys or handle property damage issues with vehicle damage. Property damage adjusters can estimate damages, or they can specialize in paying out for damages.

 

What to Remember

When you speak with a property damage adjuster, specialty adjuster or any insurance representative, above all you want to be honest and believable in any answers you give to them. You want to do the right thing and it will help you in defending yourself legally should they involve you in a court case. Adjusters will do what they can to dig at you when they believe you aren’t being truthful with them. You want any information you provide to sound credible and convincing.

 

What to Avoid

Just what should you avoid saying to an auto insurance adjuster? Here are some more important things to take into consideration before revealing information to any insurance adjuster in a property damage or bodily insurance situation.

 

Don’t Admit Fault

When you speak with an adjuster or adjusters don’t admit fault or speak apologetically. Since an adjuster will investigate your accident, they will look for ways to vindicate the insurance company of any fault. If you admit blame for the accident in your initial conversations with an adjuster, you could jeopardize your case or lessen your chances of compensation. Even in the slight chance that you think you are at fault, don’t speak of it in any phone conversations with the insurance company or the adjuster. You want to wait for the complete investigation to determine fault. You may not be aware of the other driver’s fault or a defect with any vehicle in question.

 

Don’t Speculate

If you aren’t clear with the facts in an accident situation, decline politely to provide answers to an adjuster’s questions. You don’t want to give an opinion as to what you think happened or place blame. Giving unproven statements could jeopardize your claim. An adjuster could use what you said previously and turn it to your detriment as the claim progresses. Keep any answers short, concise and truthful. Don’t provide unasked for details. Anytime you are unsure of an answer, say nothing.

 

Don’t Disclose Injury Information

When you experience an accident that includes bodily injury, an insurance adjuster will probably ask you for information about those injuries. You don’t have to answer those questions other than to explain to the adjuster that you will provide the information once doctors have assessed all your injuries. You need to explain that you don’t know the full extent of those injuries until such time that your doctors provide you with a breakdown of your injuries and a complete diagnosis of your medical condition. Divulging the status of your injuries before you have all the facts may give the adjuster the idea that your injuries are not that extensive. Also, don’t sign any medical release forms that provide access to your medical records. If you allow this kind of access, an adjuster may discover other injuries or other medical problems that they will try to relate to your current condition.

 

Don’t Give a Recorded Statement

You’re not legally obligated to give a recorded statement to an insurance adjuster. They will probably ask you, as most adjusters will want you to agree to a recorded statement. You are completely within your rights to refuse. An adjuster cannot require you to make a recorded statement. Declining is the right thing to do as an adjuster may try to use any recorded statement against you as your claim progresses and turn your story around and damage your credibility.

 

Don’t Accept First Settlement

If the insurance company gives you a settlement offer the first time around, you don’t want to accept it as it’s usually a bottom dollar offer. The adjuster may try to tell you that there will be no other offers or that this is a last offer. A first offer is usually a lot lower than the actual value of your claim. An insurance company will be in hopes you are desperate enough to accept an initial offer. You have a right to fight for full compensation.

If you are unsure how to deal with insurance adjusters, complete the online contact form and a representative will get back to you with the answers you need to communicate effectively with insurance adjusters and the settlement of your claim.

You’ve just purchased a vehicle that has prior damage and you’re probably wondering, am I going to recover the cost to insure my vehicle with this existing damage? Well, the answer is no, as you’re not going to get any coverage for previous damage. There are reasons that is so and here are a few explanations why.

 

Previous Damage

Any previous damage that happens with a vehicle is not going to be covered by car insurance. Say you have a truck with a severely crushed back fender, and you failed to make a claim for the damage when it occurred. Now you want to make a claim as you are selling the truck to a friend and want to repair the damage. Well, it’s too late, and you must pay for any repairs out of pocket. Car insurance coverage will not pay for any repairs or fender replacement at this stage.

 

When Damage is Covered

If the damage is present on your vehicle and you plan on selling it or passing on that vehicle to someone else, you must follow normal procedures with any kind of damage that occurs. If you want to qualify for coverage, you must report the damage at the time of the accident. Second, the damage has to have been an actual insurable occurrence, such as an accident with another vehicle.

 

Insignificant Damage

Usually, when previous damage is insignificant or slight, some vehicle owners will not make a claim for minor damage such as a gash or small dent. Repairing the damage isn’t worth the time and trouble when the deductible costs are more than the repair. So, instead of doing the repairs, most people will simply drive their vehicle with the damage.

 

False Claims and Insurance Fraud

When a vehicle has damage from a previous accident and a policyholder attempts to claim coverage weeks following the accident, that scenario hints of insurance fraud. Maybe your vehicle had a tree limb fall on it in an area where tree limbs often fall and you lacked the right type coverage (comprehensive) to repair the damage done. That means you failed to purchase coverage for falling limbs and other objects. Instead of paying for the damage out of pocket, you quickly add comprehensive coverage to your policy. In the meantime, another tree limb in the same area falls on your vehicle. Now you make a claim. An insurer would consider this kind of action insurance fraud.

When a policy is new, you cannot claim any damage that came before the inception of the policy. It will not cover damages that you fail to report at the time of an incident.

 

In-depth Insurance Fraud

Insurance fraud can be even more in-depth when drivers create incidents and try to collect on claims under false pretenses. For example, maybe you’re trying to parallel park in a crammed parking spot and you jump the curb and badly scrape the side of your car and put a nice dent in it. Instead of notifying your insurance company, you wait a while and claim that someone ran into your vehicle and pushed it up over a curb and sidewalk while you were away from your vehicle. You then make it your intention to submit a claim for the earlier damage.

 

Can any Vehicle be Covered for Previous Damage?

When a vehicle exceeds damage limitations, there may be issues with coverage. If a vehicle has more than surface or cosmetic damage, there are questions whether the vehicle may be seriously impaired and actual driving made difficult if not impossible.

 

Liability Coverage

You might have a chance for liability coverage, and there is even less of a chance for collision and comprehensive coverage. With both collision and comprehensive insurance, you’re dealing with physical damage and insurance companies may not want to deal with those coverages for an already damaged vehicle.

 

Collision Coverage

With collision coverage, any previous damage usually negates coverage when a new accident occurs. An insurance company may have difficulty determining new accident-related damages from the old ones and deny coverage.

 

Comprehensive Coverage

Even a non-accident related incident that falls under comprehensive coverage will not garner coverage because of previous damage to a vehicle. There may be issues with comprehensive coverage, just as there are with collision coverage. A claim faces denial because of the difficulty in recognizing previous damage from more current damage, despite a non-accident situation.

 

The Safe Way to Go

If you own a vehicle with previous or pre-existing damage, you are eligible for liability coverage. Most any registered vehicle that’s legal to drive on the road is eligible for minimum liability coverage. Even if your vehicle has previous damage, liability coverage is available. It covers costs you incur on other drivers and any property. You need to know, however, that you might need to go through a different insurance provider that deals in high-risk insurance, particularly when there’s considerable damage to your vehicle. Also, you’ll probably be ineligible for either collision or comprehensive coverage when your vehicle has significant prior damage.

 

Prior Damage Legalities

With prior damage concerning your vehicle, it’s important to be upfront with your insurance carrier. When any damage occurs, contact your provider as soon as possible. Your company will document the damage and a company representative will assess the damage and take pictures of any damage. Any future claims will show documentation of previous damage that you report. Remember that any existing damage will not be under coverage. There is no reason to worry about insurance fraud when you are forthcoming about reporting damage when it happens.

When insuring a vehicle that has prior damage, it’s important to remember that an insurance company is unlikely to cover damage that is already there. It’s best to report any damage right away that happens whether you make a claim. If you fail to report previous damage, you could face the consequences of insurance fraud. If you’re still questioning how to insure a vehicle that has previous damage, complete the online contact form and a representative will get back to you with the options available to you.

Determining whether you need collision coverage is an important part of any decision making when establishing or re-configuring an insurance policy. There are different insurance coverage choices and collision is one of them. There are reasons for having it and not having it. Here is some general information on collision insurance coverage, just what it covers, and any current requirements. You can better decide whether you need collision coverage included on your vehicle insurance policy.

 

Collision Insurance Requirements

State car insurance laws vary from state to state. No states require drivers to carry collision coverage as part of their minimum requirements. Collision coverage is optional according to state laws.

 

What Collision Insurance Covers and Other Particulars

 

Collision Coverage

Collision insurance covers damage that you cause to your vehicle when you hit a stationary object such as a tree, pole, fence, pothole, mailbox, guardrail or some other fixed object.

 

Other

• Collision insurance will pay for a claim when hitting any of the above objects. Since these objects are avoidable on a street or in a road, insurance companies will consider you at fault for hitting any of them.
• Filing a claim for hitting an object may cause a premium increase.
• Accident forgiveness may negate increases.
• Insurance will only pay damage for your vehicle even when you’re at fault.
• Coverage will pay for damages when a rollover accident occurs. If you’re at fault, collision insurance will still pay the damages.
• When another driver is at fault in a rollover incident, the driver’s insurance should pick up the cost for damages.
• If a vehicle is in total disrepair and not salvageable, collision coverage will insure the vehicle at its current cash value. Insurance estimators will determine repair costs or whether damages extend beyond the possibility of repair.

 

Collision Coverage When the Other Driver is at Fault

• When another driver is at fault, collision coverage will pay for damage to your vehicle.
• When another driver completely totals your car or damages it significantly, your collision coverage will take effect.
• Collision coverage will cover costs when the driver of another vehicle lacks sufficient insurance to cover damages.
• Your insurance provider will cover the costs of damage to your vehicle and will pursue reimbursement through the other driver’s insurance company.
• When the insurance company of the other driver stalls or fails to act expeditiously, your insurance company needs to take prompt action to rectify the situation. If you carry collision insurance on your overall car insurance policy, you may ask your insurance company to act on your behalf.
• If you have to use this option and pressure your insurance company, and you were not at fault in the accident, you should not experience an increase in rates. It’s important to speak with your insurance agent concerning whether this situation will affect your insurance rates.

 

Property Damage Insurance

One thing to keep in mind with collision insurance coverage is that it only covers damage to your car. It doesn’t cover damage that you may do to someone else’s vehicle. Property damage insurance, which is part of your liability coverage, which is a requirement in nearly every state, is the coverage that will pay for damage to another driver’s vehicle. When the other driver is at fault and damages your vehicle, their liability coverage pays for damage to your car. Your collision insurance does not cover damage by someone else.

 

Other Situations in which Collision Coverage Operates

Sometimes collision coverage will pay for damage that is not part of your policy. Say you don’t have comprehensive coverage which covers acts of nature, vandalism, theft and other situations. When comprehensive insurance coverage is lacking, these losses can go through collision insurance coverage. Other instances include hit-and-run accidents or non-insured driver accidents. Remedies for losses under these situations can fall under collision coverage, but using it in these cases may increase rates. Your carrier may consider the damage your fault. That is one reason comprehensive insurance is an added benefit, as is underinsured motorist coverage (UIM). They both make up for most any damage in various situations.

 

When to Purchase Collision Insurance

When you have a newer vehicle or one that requires extensive and expensive repair, collision coverage is important. It’s also usually a necessary requirement if you took out a loan to buy your vehicle.

If you have an older and less costly vehicle, it makes little sense to buy collision insurance as the cost to repair your older vehicle may be more than what you put out for the insurance coverage. Since collision insurance is not a requisite, you’ll want to look at the cost to insure your vehicle, your vehicle’s value and the cost of repairs.

 

Consider Deductible Amount and Overall Costs

Another important thing to consider with collision insurance is the deductible amount you’re willing to go with if you add collision coverage to your policy. If you have a larger deductible, premiums will be lower but you’ll be paying out a large deductible if an accident occurs and your vehicle has major repairs. Your overall costs for collision insurance will vary and will depend on the car you own, its age, its current worth, your driving record, your age and gender. Collision coverage will probably be higher if you have a poor driving record and have filed claims for damage in the past.

Whether you need collision insurance is something that requires careful thought and consultation with your insurance provider. Should you have further questions concerning a collision policy, complete the online contact form and a representative will get back to you quickly with the answers you need to make an informed decision.