Category: Insurance

Switching your car insurance is not an end of the world event. In fact, it’s actually not that complicated. Everyone who owns a vehicle has at one time or another chosen to move on to another provider. With so many insurance carriers glutting the market, and prices fluctuating, there are unending choices and deals to be gained. Maybe you’re moving to another area or are experiencing poor service from your current provider. If that’s the case, think about changing insurance companies.

 

Steps to Follow

If you’re unsure of the process in switching to another carrier, here are some steps to follow and some precautions to take when changing your car insurance coverage.

 

Comparison Shop

In switching insurance providers, your first step is to do some comparison shopping. You want the lowest price possible in a policy along with good customer service. Contact as many insurers as possible.  Get 3-5 quotes through on-line providers, independent agents, or other insurance companies. Further research the going rates in your area to get a better understanding of competitive pricing. Also, seriously think about whether you need changes in your coverage. You’ll want to check for discounts that you may qualify for through a different policy.  Check whether you can eliminate certain coverages, like collision, particularly if you own an older vehicle that’s diminishing in value. Or, if you’re driving more in the evening hours, you’ll probably want to look at increasing your liability coverage to minimize your risk of nighttime accidents.

 

Know What You’re Getting

A low quote for car insurance is easy to pounce on but before you go full speed ahead with a different company, determine what kind of coverage you’re getting. The quote given to you may be lower, but it may also be for a lesser amount of coverage than what you are getting through your current policy. You may have to increase your coverage on a new policy, which means you aren’t initially saving what you thought you would.

 

Steering Clear of Mistakes

To steer clear of making mistakes, compare your current policy features with that of the new policy. Look at the types of coverage on the new policy and your limits and deductibles with it.  You should send a copy of your current declarations page to a potential insurer that includes a listing of your current policy provisions. You want any new provider to be aware of the coverage you need, plus you want a new policy equal to or better than your current policy.

 

Notifying your Current Provider

Once you’re done with your comparison shopping and have come up with a fair price and a good company to work with, notify your current insurance provider of your plans to make a change. Explain to them you’ve been a loyal customer and that you’ve found another insurer that offers similar coverage at a lower cost. Most insurers today like to keep long-standing customers, so they will likely go over your account and determine whether you are eligible for discounts. They may either match the quote or go below the other insurer’s quote.

 

Cancellation Process

If your current insurance company is unwilling to make adjustments to your policy or meet a competitor’s quote, you need to ask them about the cancellation process concerning your policy. You will probably have to give them sufficient notice of cancellation. That can be as much as 30-days. You may also have to pay a cancellation fee as some insurance companies charge penalties for going to another company before the end of the term of your coverage. If you cancel in the middle of a term, you may have to pay a percentage for any unused premium or there may be a standard fee. Other insurers may allow you to cancel whenever you choose as long as proper notice is given. Be sure and ask your insurance company if there is a cancellation penalty. You can then decide whether to make the switch right away or at another time to avoid any penalties.

 

Finalization of the Switch

If you complete a switch in your car insurance, pay for your new policy and verify that it is in place and active. Once your new insurer provides verification, contact your old insurer and cancel the policy. You should receive a refund for any time left on your old policy when making the change at the midpoint of the policy. You don’t want any interruptions in your coverage, so make sure you have coverage between the end of your old policy and the beginning of your new one. You don’t want to risk losing your license or receiving premium increases.

 

After Switching Policies

When you switch your insurance policy and are with a new company, you’ll want to notify any lease provider or loan holder right after you make that switch. Car lease holders and loan holders almost always require insurance coverage. If a loan company thinks you no longer have coverage, or that your insurance coverage has been cancelled, you could face repossession of the vehicle.

Your new insurer could drop your coverage during the first couple months that coverage is in effect (60 days). Within that time period, you want to be very careful to avoid traffic violations and accidents. You don’t want to wind up uninsured or worse yet, scrambling to find another provider.

Switching car insurance companies doesn’t have to be a drawn out affair, but you want to take time to research enough alternatives that offer adequate coverage at competitive rates. If you are still unsure how to go about switching your car insurance, complete the online contact form and a representative will get back to you with the information you need to help you make the switch.

Have you ever glanced through an entire car insurance policy? If you have, you know reading and reviewing one can sometimes be a long, boring and arduous process. You want to know the basics rather than plowing through page after page of insurance legalese, but you don’t want to be in the dark either concerning your policy and what it says.

Knowing and understanding the ins and outs of your policy is, however, important, and since a car insurance policy is a legal contract, and spells out the details of a policy, it’s definitely critical to know your coverage and the details of your policy.

 

Reviewing your Car Insurance Policy

So, how should you review your car insurance policy to gain the most knowledge? Whatever you do, don’t dismiss the details of your policy and other important content. You don’t want to come up short when an accident occurs. You’ll be out in the cold because of neglecting to examine your policy. If any adjustments or changes require clarification, consulting with your insurance agent is a must, but if you want to examine it yourself, there are several important things you’ll want to look for, including the declarations page.

 

Declaration Page

The first thing you want to do is read and review the declaration page(s) as it’s probably one of the most vital pages of your policy. There may be multiple pages so be sure and look through them all. The page (or pages) declare levels of coverage, driver names, deductions and prices for coverage. If you don’t have your declaration page in front of you, access it online by logging on to your car insurance company’s site and going to your policy.

Other information on the declaration page includes the following:

• Your policy number as well as your home address
• Policy time-frame – dates policy is in effect
• Drivers on the policy who are under the insurance plan
• Your vehicles on the plan along with their VIN numbers (Vehicle Identification number)
• Coverage Schedule – with limits, deductibles and premium cost for each coverage
• With more than one vehicle on a policy, any coverage for it will be listed separately
• Policy discounts – this includes any discounts that you may have received on your policy
• Surcharges – surcharges on your premium will be applied if claims have been made or tickets incurred

 

Policy Terms- Definitions

Since the legalese of your declaration page or the entire policy may create confusion, there will be a section in your policy entitled Definitions which will define terms or specific words in the policy. It’s an important section as it will define:

• The individuals insured
• The specifics of what is insured
• When those specific entities are insured

Refer to the definitions page whenever there is doubt about the who, what and when of your policy. Any keywords pertaining to those areas will usually be in bold print within the policy. If you don’t understand the words or wording, be sure to consult the definitions page or speak with your insurance agent about difficult wording.

 

Changes and Renewals to your Policy

When you make changes to your policy, which could mean adding another car or new driver, or removing a car or driver, a new declaration page will be sent to you showing that those changes have been made to your policy. Any time that you make changes to your policy, it’s important that you request the page and that you review it to ensure that everything is as it should be with the changes in place.

 

Review your Coverage

Along with your declaration page, you’ll want to review the coverage that you are carrying now and whether you want to make any changes. It is necessary to understand your coverage options to determine what is best for your current car insurance needs. The following coverages and levels of coverage are usually part of most any car insurance plan. They include:

 

Liability

Liability insurance is one coverage that is a requirement in most every state, but its limits vary among states. This insurance coverage pays medical bills, legal judgments, vehicle/property damage or injuries that you or a designated driver cause to another vehicle or person. It is also protects you if you are using another person’s vehicle with their permission. Determination of limits is through bodily injury and property damage.  Recommended amounts  for coverage are $100,000, $300,000 and $100,000 (100/300/100).  Consult with your insurance agent whether you need to increase these amounts.

 

Collision

Regardless of whether and accident is your fault, collision insurance covers and pays for any damage to your vehicle that occurs with another vehicle and with an object. Deductibles with this kind of coverage run from $250-$1,000. If you go with a higher deductible, your insurance premium will be lower.

 

Comprehensive

Comprehensive coverage pays for damage to your vehicle through an occurrence other than a car accident. Comprehensive coverage includes:

• Vandalism
• Theft
• Shattered windshields/ other glass damage
• Fire
• Earthquake
• Explosions
• Riots
• Hail
• Windstorms
• Floods
• Falling items (tree branches)
• Animal contact (deer)

As with collision coverage, there is a choice with deductible amounts that range from $100-$1,000.

 

PIP or Personal Injury Protection

Regardless of who’s at fault in an accident, this protection pays for any medical treatment for a policyholder and passengers who suffer injuries through a car accident. This coverage may also cover work and wages lost and funeral costs. The requirements for this coverage vary by state.

 

Uninsured and Underinsured Motorist Coverage

This coverage pays for damages if you, another family member or a designated driver are involved in an accident with an uninsured or underinsured driver. Requirements for this coverage depend on the state where you live. You can reject it in states where it is available. Should you waive coverage, the declarations page will show the wording “insured rejects.

 

Other Factors to Consider

Besides understanding your declarations page, you’ll want to know the details, limitations and intricacies in reviewing your car insurance policy. Your  policy is a legal contract after all that requires you to read and review your coverage and the insuring agreement, which is the actual contract over each type of coverage. It governs whether coverage allocation will occur with an accident or related event. Another thing to pay attention to will be the sections of a policy that contain exclusions. Exclusions can have a major effect on claims.

There is much to learn in reviewing your car insurance policy, and you’ll want to avail yourself of help if the review process becomes difficult. Relieve the stress of examining your policy by completing the online contact form. An expert representative will get back to you as quickly as possible with the answers you need to review your policy effectively.

If you’re involved in an accident, particularly one that involves another vehicle, you’re pretty much under obligation to file an insurance claim. If you don’t, you’re likely at risk for legal implications. So, exactly what constitutes filing a car insurance claim? Here are answers to better help you understand when to file a claim.

Damage Sustained

When two vehicles are involved in an accident where significant damage has occurred, it’s imperative to contact your insurance carrier. Substantial damage warrants filing a claim in spite of who is at fault in the accident. If there are doubts as to the extent of damage, don’t let it go by the board. Even the slightest vehicle damage can be extremely expensive to repair. So, beware of personal and quick settlements with the other party or driver when it comes to estimating damages.

Other Involvement

If another driver is involved, or you as a driver damage someone else’s vehicle with a dent, deep scrapes, scratches or other damage, you need to let your insurance company know that a second driver and vehicle are involved. You don’t want the other driver in a two-car incident or run-in to come back at a later date with further claims of more involved damage, increased payouts or even lawsuits.

Liability coverage will serve as protection from lawsuits. Most insurance companies are well versed in dealing with drivers and their accusations concerning accident involvement. Liability insurance pays for any damages or injuries that drivers may cause. It also pays any legal costs or lawsuits that come as the result of an accident.

In regard to damage to your own car, be aware of possible hidden damage and repair costs. Collision insurance coverage should pay for the damage, excluding the deductible. Any amount of damage warrants notifying your insurance carrier within a certain period of time. If you wait too long, your claim payment could be jeopardized.

Serious Injuries

When serious injuries occur to you or another driver because of a collision, it’s necessary to pursue a claim with your insurance carrier. Even if it seems as though any injuries are minor or less critical at the accident scene, it is important to keep in mind that some injury symptoms don’t manifest themselves until sometime later. You don’t want to be held liable for ongoing medical bills for someone else. Your insurance company should be the one handling any medical issues. You don’t want to negotiate any injury payments outside of your policy.

Rate Increase Fears

Drivers who are involved in fender benders or minor accidents (where no injuries have occurred) will try to avoid filing a claim because they fear their insurance rates will increase.

Rather than filing a claim, some drivers prefer negotiating any repair expenses with the other driver in order to avoid increases in their insurance rates. What drivers need to realize is that most insurance companies assess rate increases by the cost of any damage. If the damage happens to be less than a possible rate increase (once a claim has been made), a driver won’t have to use insurance to cover minor vehicle damage.

Failing to File a Claim

Again, in certain situations, there can be serious legal repercussions for not filing a car insurance claim. Here is some of what you should consider when determining whether to file a claim:

Rate Increases

A rate increase will depend solely on your individual insurance company as well as the conditions concerning the accident. Accident forgiveness is also a factor with rate increases. A good driver can be in an accident one time and not be punished with an increase.

Considerations Made with Rate Increases

When deciding whether to raise your rates, here are a few factors your insurance company will consider:

• The severity of the accident – The more severe the damage, the greater the likelihood of a rate increase due to a car insurance carrier making a larger disbursement or payout.
• Who’s at fault – Rates may increase if you were at fault.
• Rates may remain the same if the other driver was liable.
• Rates can increase in some localities and states (no-fault states) or through your insurance company rules and guidelines. Any increase may be less even if the fault was yours.
• Your driving record – If you have a safe driving record, you’re a cost-saving driver to your insurance company. Also, if you’re a long-standing policyholder, you may be assessed a smaller increase in rates in comparison to a driver with a bad driving record and less history.
• Rates are lower for drivers who have no claims, or a smaller number of claims. These drivers are recognized as low-risk. Insurance carriers have determined that safe and competent drivers aren’t inclined to file claims that require payouts.
• Any rate inquiry should go through your insurance company. You will have to ask for a surcharge schedule or connect with your insurance agent. Your company or agent will note your inquiry.

When Not to File a Claim

There is no need to file a claim if:

• the accident involves only you and your vehicle.
• the damage is limited and small, like the kind sustained from backing into a pole or mailbox.
• you only have liability insurance coverage and no collision coverage. A policy will not cover damage to your vehicle without collision coverage.
• you have collision coverage but the damage to your vehicle is limited and your repair costs are less than your deductible (what you pay out of your pocket). In that case, filing a claim is unnecessary.

If you are unsure when to file a car insurance claim, complete the online contact form and a representative will return your inquiry as quickly as possible. Don’t get caught in the possibility of a rate increase or other legal implications because of failing to file an insurance claim quickly and efficiently.

After a car accident, the time-frame for filing a claim is dependent on a number of factors. For one thing, each state has its own set of rules concerning reporting accidents as well as filing different types of claims. State limits for filing claims can be anywhere from immediately to a number of years. Knowing your state’s statute of limitations for filing is necessary as is connecting with an insurance agent who handles car accident claims and can move the claim process along more quickly.

Reporting an Accident

Reporting an accident happens prior to filing an insurance claim and, again, depends on state policies. Most states request that any accident that involves injuries or an excess of $2,000 in damages should be reported immediately. Immediately usually means a phone call to the police or Department of Motor Vehicles (DMV) at the time of the accident. If an accident is minor and no claim comes from it, then filing a police report may be unnecessary; however, even if an accident is minor, contacting the authorities is important as any evidence of possible damages or injuries that occur long after an accident is over may be of help in filing a claim.

If additional time is given to report an accident, delays diminish the validity of the claim. The chances of a claim being fully covered for losses will be in question. Courts, as well as insurance companies, look at police or DMV reports as evidence in order to determine the driver at fault in an accident.

When to Initiate a Claim

Depending on what a vehicle insurance policy states in regard to filing a claim, a policyholder may have to initiate a claim within a certain number of hours (usually 24) or at the time of the accident. These are recommended limits but they are not a requirement as drivers can file a claim within the statute of limitations in the state where the accident happened. A state’s limits are usually such that there is sufficient time to fully assess property damage and serious injury complications that may not be present at the time of the accident.

Types of Claims and Time Limits

Within a state, time limits can vary with the type of claim. The time limits or statutes of limitations are categorized under auto insurance claims that include:

Other Damage Claims

• property damage to another vehicle
• collision (damage to your own vehicle)
• comprehensive (damage to your vehicle through an occurrence not related to a collision, such as natural disasters, vandalism, fire, theft, and other calamities)

Bodily injury claims

• injury claims that result from a car accident

When to File a Bodily Injury Claim

If injuries occur as the result of a car accident, the passage of time is important in determining the extent of those injuries. Sometimes less serious injuries can have continuing effects that make it hard to function in everyday life. Obviously, more involved injuries are going to require continuous medical attention and are also life-changing.

When medical attention is ongoing, it’s not necessary to wait to file a claim. Rather than waiting, it’s best to initiate the process of whether filing a claim or pursuing a possible lawsuit. A lawsuit will have to meet a filing deadline but the full extent of any injuries and continuing medical attention should be determined before pursuing a claim or lawsuit. Again, it’s important to know the personal injury statute of limitations for the state where the bodily injury occurred.

Passage of Time

Delaying a claim can make it more difficult to justify it over time. Most insurance companies are likely to be distrustful and suspicious of a delayed claim. A holdup could trigger an investigation by an insurance company into why any damages haven’t been handled more quickly. An expanded investigation could turn up information about the damage that occurred through a different accident at a later time. If an insurance company has reason to believe your initial claim never happened or you’re fudging on time, your coverage could be denied.

Once a car accident has occurred, there are certain steps to follow in filing a claim. A full assessment of any damages or injuries needs to be taken into account. Reporting an accident whether it’s a minor or major one should take place quickly. Filing an actual claim should follow with further evaluation of damages and injuries. If you are unsure as to when a claim should be filed, complete the online contact form and a representative will get back to you with the answers you need to pursue your claim in a timely manner.

For a start, we should go ahead and tell you something. There is no way that we can give you an accurate assessment of how long your insurance claim will take. There are so many potential factors that could complicate things, and there is no way to cover them all. That being said, we can definitely give you a better idea of where you stand, and how much longer you are likely to be waiting.

What Is The Ideal Time Frame?

Under ideal circumstances, most insurance companies will try to settle all claims within 30 days of their filing. If you are lucky, you might be one of those who get everything settled and paid within a month. Unfortunately, this 30-day goal is more of a guideline than an actual rule. There are many things that can delay your settlement.

Delaying Factors

The first factor is the desire of your insurance company to avoid paying. In most cases, insurance companies will try every trick in the book to avoid paying out on claims. To them, it is simply a matter of preserving the financial bottom line. They know that paying a lot of expensive claims will affect that bottom line, so they have all kinds of tricks that they might use. One of these tactics is to simply delay the matter until you give up and accept whatever is offered.

While all insurance companies will try to avoid paying, there is a point at which you have to say “enough.” When you determine that your insurance company is acting in bad faith, you need to find a better one. Sometimes, you just have to cut your losses and move on as best you can.

Your claim can also be delayed if the other driver decides to dispute the matter. In many cases, their insurance company might pressure them to dispute the case, simply because they don’t want to pay. If the claim is disputed, a more in-depth investigation will have to be done, and that invariably takes more time. Sometimes, these kinds of disputes can be tied up for years in a seemingly endless back-and-forth process.

Time Limits By State

You might be happy to find that the law does place some limits on the length of time that insurance companies can take to process claims. Unfortunately for the average insurance buyer, these time limits are pretty generous. Still, it is good to know that the law places some limits on this process, even if they might not be adequate. The time limits work in much the same way as a “statute of limitations” and are legally considered as such.

Here is a complete list of these time limits by state:

• Alabama: 2 years
• Alaska: 2 years
• Arizona: 2 years
• Arkansas: 3 years
• California: 2 years
• Colorado: 2 years
• Connecticut: 2 years
• Delaware: 2 years
• Florida: 4 years
• Georgia: 2 years
• Hawaii: 2 years
• Idaho: 2 years
• Illinois: 2 years
• Indiana: 2 years
• Iowa: 2 years
• Kansas: 2 years
• Kentucky: 1 year
• Louisiana: 1 year
• Maine: 6 years
• Maryland: 3 years
• Massachusetts: 3 years
• Michigan: 3 years
• Minnesota: 2 years
• Mississippi: 3 years
• Missouri: 5 years
• Montana: 3 years
• Nebraska: 4 years
• Nevada: 2 years
• New Hampshire: 3 years
• New Jersey: 2 years
• New Mexico: 3 years
• New York: 3 years
• North Carolina: 3 years
• North Dakota: 2-6 years
• Ohio: 2 years
• Oklahoma: 2 years
• Oregon: 2 years
• Pennsylvania: 2 years
• Rhode Island: 3 years
• South Carolina: 3 years
• South Dakota: 3 years
• Tennessee: 1 year
• Texas: 2 years
• Utah: 4 years
• Vermont: 3 years
• Virginia: 2 years
• Washington: 3 years
• Washington DC: 3 years
• West Virginia: 2 years
• Wisconsin: 3 years
• Wyoming: 4 years

Disputing A Claim

If a claim is not resolved in a way that benefits you, it might be possible to dispute the claim. There is a process that must be followed, and you should take care to follow every rule. Otherwise, your claim might be disqualified immediately.

Before filing a dispute, you should definitely get your policy out and read it carefully. This policy represents a legal contract, and the insurance company will try to use it against you in the dispute process. By understanding the terms of your policy as thoroughly as possible, you ensure that they can’t bluff you into dropping your dispute.

Although your contract with the insurance company is legally binding, it is still subject to state and federal laws, just like any other contract. Thus, if any provision of the contract is found to be in violation of state or federal law, it is null and void. This fact might help you out if you need some leverage in the negotiating process.

Conclusion

As we said from the start, there is no way to know how long your insurance company will take. However, if you are in need of emergency help, it wouldn’t hurt to ask. Some companies will provide immediate financial help (to be paid back at a later date). Either way, you might as well try to be patient about this whole process. We hope that our article has given you a better idea of how this works and that this knowledge will help you to deal more efficiently with your insurance provider. If so, we hope that you will fill out the contact form below.