In an ideal world, you would pay your auto insurance premiums promptly, and your carrier would settle your claims as soon as you submit them. Unfortunately, things do not always go as smooth as that; disagreements arise and pit insurers against their clients. Here are three examples of common disagreements, and how to prevent them:
After a collision, your insurer will be interested in your car's value just before and after the crash. The insurer needs this information to determine whether your car is worth repairing or it should be written off. If the car is written off, then you receive an amount equal to its value just before the accident. Unfortunately, there is often a big gap between insurers' valuations and what car owners think their vehicles are worth.
Protect yourself from such disagreements by thoroughly reading and understanding your insurance policy. Most disagreements arise because motorists assume they are entitled to the original values (at the time of buying the insurance) of their cars, which is not the case. Another good option is to purchase GAP insurance, which covers the difference between your car's original value and its value just before damage.
Quality of Repair
Another common dispute is the quality of insurance-covered repairs. Insurers handle repairs differently. For example, some insurers will handle the repair, and you only collect your car once they are done with it while others will let you repair it and reimburse you the cost. A confrontation is likely to occur if you go with the first option.
Prevent such disagreements by choosing an insurer whose repair policies are in line with what you want. For example, choose an insurer who handles the repairs if you don't want the hustle of dealing with such things. The reimbursement option is ideal if you wish to be in charge of the quality of your car's repairs.
Your insurer sets your premiums based on your likelihood of getting involved in a mishap for which it has to pay. To do this, it needs some data from you, such as your age, where you park, your profession, the type of car you own, and even any modifications you may have made on the vehicle.
Your insurer needs this information not only during the initial coverage purchase but also during subsequent renewals. If you lie or withhold any information, then your insurer may deny a claim based on this non-disclosure.
Unfortunately, many motorists renew their auto insurances without reading and understanding their policies. If you do that, you may not know about the information your insurer needs whenever you renew your policy. For more information, contact an agency near you, such as Axiom Insurance Agency.