There is a greater chance that an insurance claim is made against you when you damage someone else’s insured property. In a scenario whereby you ram into an insured vehicle, the owner is likely to make such a claim against you immediately. What happens after that, how can you handle such a situation? No worries, this article should serve as a comprehensive guide on how a third party can make a claim against you and how you can smartly attend to it.
What Is an Insurance Claim?
While insurance is an agreement between you and an insurance company to offer coverage for your losses, an insurance claim is a formal demand or request by a policyholder to an insurance company, demanding compensation for a covered loss or policy event. However, it is up to the insurance company to either accept or reject such a request. In a situation where it is approved, the insurance company will process a certain amount of payment to the insured.
How Does Insurance Claim Work?
When the need to offer cover for your losses occurs, you must then submit a claim to your insurance provider regarding the lost or damaged properties. For instance, if you are in an accident and want them to cover your damages. You will require the following details in order to submit a claim…
1. Names of Everyone Involved
It is very paramount that you make available the names of everyone that is affected by the accident. Likewise, if you’re making an insurance claim against someone, or they’re making it against you; this process will still be taken so that the insurance company can have a clear knowledge of how many people are involved and how they begin the process.
2. Your Insurance Policy Number
You are also expected to provide your Insurance policy number. The victim of the accident can simply request this from you as well when he/she begins to call her insurance company. Or you send them to your own insurance company after you have accepted to make the claim.
3. The Other Driver’s Insurance Information
The driver whose car was hit also has to provide information about his Insurance. The accused driver will have to forward such a piece of information to his insurance company and things can go on from there.
4. Details of The Accident
Every important piece of information about the accident must be forwarded to the insurance company by the policyholder. It is advisable that pictures of the damaged parts of such vehicles are taken and sent as well. This allows the company to calculate the expenses and arrange a body part replacement for the victim.
What Does Insurance Claim Cover?
The type of insurance policy you have will determine the type of insurance claim that is covered. This means the type of damages done to the driver’s vehicle can be equally classified and attended to separately if you are insured in that manner. Some of the insurance covers are:
1. Bodily Injury
Bodily injuries can be referred to as the physical injury sustained by the accident victim. Therefore, the bodily injury policy in insurance covers the medical treatments that will be given to restore the health of such a driver. The driver involved can file such a claim to your insurance company to get these privileges.
2. Property Damages
Property damages are the items such as cars, motorcycles, houses, or any item of value that is destroyed in an accident. The affected person can also reach out to your insurance company to file a claim against you. If accepted, your insurance company will oversee how the destroyed item can be reinstated to its former position.
3. A Comprehensive Insurance
Comprehensive insurance refers to the damages that are vented on your insured vehicle. It may not necessarily be an accident. It could be car hijacking, flooding, a destructive object falling brutally on your vehicle, or vandalism. In this situation, you can reach out to your insurance company and file a claim demanding restoration.
4. Collision
When your car gets involved in an accident, and some parts of it are broken, it is called a collision. Irrespective of who is at fault, you have the full right to file a claim to your insurance provider’s office demanding a refix of your car once your insurance policy covers it.
What Happens When an Insurance Claim Is Made Against You?
It is good to know what happens if someone claims your auto insurance. Your insurer will often notify you and inquire as to whether the occurrence was your fault or not. If you agree, the insurance provider will take care of the entire claim on your behalf, including talking about the occurrence with any relevant parties and disbursing the compensation. Additionally, when a claim is made against you, you cannot help but notice that your insurance rate has gone up drastically. The rate at which it goes also depends on how faulty you are.
How To Reduce Your Insurance Rate After an Insurance Claim Is Made Against You?
If you still choose to continue your partnership with your insurance company after an accident, for which you’re at fault, it means your insurance rate would escalate badly. This can put much strain on your personal finance since you now have to pay higher than before. However, we have a few tips to avert/mitigate such pressure on you. And they are:
1. Seek Another Insurance Company
With hundreds of insurance companies willing to accept you regardless of your driving history, you can always look out for a better insurance company. This will automatically save you from paying a higher insurance rate and make you start everything over. However, watch closely when picking an alternative insurance company. Because of your accident history, some insurance companies may frown on you. But these are ideal for such a plan
1. State Farm
2. GEICO
3. Nationwide
4. Allstate
5. Farmers
6. Travelers
7. Progressive
8. MetLife
9. Travellers
2. Increase Your Credit Score
You may be wondering what credit scores are, most insurance company has a risk management setup that increases when drivers keep a clean sheet of their driving history. This is made possible with the use of tracking software installed in the vehicle. If your credit score is kept clean for a long while, chances are your insurance rate will reduce drastically and drop to the former rate it was before the accident.
3. Use The Public Transport
You can choose not to drive your insured vehicle for a while if an insurance claim was recently levied against you. Simply make use of the public transport system. The logic behind this is that you will be qualified for a few discounts when your vehicle is not used for a certain duration. These discounts can help reduce your insurance rate over time.
How To Handle an Insurance Claim Made Against You, If You’re Not Insured
Not everyone driving on the public road has an insurance plan, if you fall in this category here’s what to do once an insurance claim is filed against you. As soon as the other driver, their insurer, or a debt collector sends you a letter seeking payment, you should seek legal counsel immediately. If you were at blame for the collision, start negotiating with the other driver’s insurance company right away.
If the quotes are reasonable, request copies of all of them and make plans to pay the debt. It’s up to the other party or their insurer whether they accept your offer to pay in instalments. Calculate what you can realistically pay if you are unable to make the entire payment. Describe the circumstances that prevent you from paying the whole sum right away.
What Are The Process of an Insurance Claim
If you get involved in an accident for which you’re totally at fault, it’s time to contact your insurance company once you know that your current insurance plan can afford the damages. However, you need to follow a process to claim in the right manner, the process is:
1. Report Your Claim Immediately
Once you get involved in a car accident and damages are recorded, you should make an instant call to your insurance company. Many insurance companies now accept that claim reports be made either through phone calls or online once they have a connection. Your insurance company will now connect you to an adjuster who will oversee the affairs with you till the case is over.
2. Your Adjuster Will Investigate The Claim
You’ll be questioned about the loss by your adjuster. This is where you will need to provide visual information about the damaged property. The procedure will go more smoothly for everyone depending on how in-depth the information they can offer. List all the items that have been damaged, stolen, or lost. To better describe the problem, include images or videos for better illustration.
The adjuster might want to go to the scene of the loss themselves or have someone else go there in their place. They can also ask for your assistance in locating witnesses or other individuals who might be around when the incident happened. To complete the inquiry, your adjuster will let you know what they require from you.
3. Your Insurance Coverage Would Be Determined
It is at this stage that your adjuster will review your insurance policy after gathering the relevant information to determine if your damages are fully or partially covered. They will now reveal to you what is covered, how much is covered, and any relevant deductibles.
4. Replacement Stage
This is the stage where your adjuster can order the replacement of damaged properties once they have confirmed that your insurance coverage is above the loss. In situations where only low-priced items are destroyed, an instant replacement can be issued and the whole case is closed. However, if it involves bigger projects, such as car accidents or house damages, contractors or car mechanics may be hired to get the job done. An upfront payment is usually made to hasten the replacement process.
5. Final Payment
Once all payments for the replacement of damaged properties have been issued, your insurance company will pay you the remainder of the funds. Alternatively, there can be negotiations between an insurer and the insured concerning what happens afterwards. The conclusion of such negotiations either allows the company to pay the remains to the insured person and close the claim or a formal dispute process is followed.
Conclusion
With all the guidelines provided, you shouldn’t have problems addressing issues pertaining to the issuance of insurance claims against you. While it may cause a little fuss at first, you can implore different approaches detailed in this article to address such an insurance claim even if you’re not covered by an insurance company.