Important Things To Remember When Claiming Car Insurance

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Life has a habit of surprising us and  those surprises are usually very unwelcome. When some unfortunate events happen, such as a car crash, it is important to maintain composure, make sure of your safety, and systematically start the car insurance claims procedure. Getting a good motor insurance settlement can help you financially and help you move on faster with whatever you have in your future plans. But it is far easier said than done. As you start to think about making a claim, there are many things that you need to take into consideration to be successful. 

This article is a guide to important things to remember when claiming car insurance.

To Claim Or Not To Claim?

Before actually starting the claims process, consider carefully whether or not you should make a claim at all. Do keep in mind that getting a claim may affect your ability to get insurance later and think about the amount of money you have to pay as an ‘excess’. There are a few different scenarios in which making a claim may not be advisable:

– The damage is minor, and the cost to repair that damage is less, equal, or only a little more than the ‘excess’ that you have to pay.

– When you are clearly at fault.

– When you are not at fault, and the at-fault party is insured, you can consider making the claim from them instead.

Know The Claim Settlement Ratio Of Your Insurance Company

The claim settlement ratio of an insurance company is the percentage of settled claims compared to requested claims in a year. This ratio gives you a rough idea of how much you are likely to get as compensation from your insurer and it is very important when you are looking at the top options available to pay attention to this ratio when choosing an insurer. The higher this rate is, the more liability your company gets. In a relevant note, claim settlement ratio is also an important yardstick to consider when choosing an insurance company. Don’t forget to compare different company’s liability online before deciding on a package. It is absolutely essential that you know what you will be signing up for.

Understand What Your Insurance Does And Doesn’t Cover 

Your insurance is comprehensive if it covers the loss or damage (due to natural/man-made calamities), personal accidents, and third party legal liability. Most insurers compete with each other by having more extensive policies to protect their clients from negative consequences. However, there are some exceptions that most companies don’t cover:

– Any incident that occurs when you drive someone else’s car.

– Any incident that occurs when someone else is driving your car.

– Any damage caused when the driver is at fault.

– Property inside your car like bags or phones, etc.

To get an accurate idea of what is covered and what is not, read your insurance policy carefully to make sure that you get the compensation you deserve.

Get To Know Some Common Claim Rejections

Familiarizing yourself with some common claim rejection excuses is the best way to take the necessary precautions to avoid them. Some common reasons that may cause your claim request to be declined include:

– If you provide incorrect or false information on your application form.

– If you fail to prove that you are driving legally (e.g. a valid driving license).

– If you have your car repaired without or before informing your insurance company.

– If you are using your car for illegal purposes.

Know The Types Of Claim That You Can Expect

In terms of claim classifications, you can expect to receive either a cashless claim or a reimbursement claim.

  • Cashless claims

With this type of settlement, you don’t have to worry about the cost of repairs. However, you have to take your car to a network garage. You’ll just need to pay the deductible amount, while your insurer will pay the rest. 

  • Reimbursement claims

You will need to pay for the repairs yourself prior to submitting relevant documents like the original bills or receipts for your insurance company. After subtracting the deductible amount, the insurer will make a reimbursement claim for you. With this type of settlement, however, you can fix your car at your preferred garage.

A car is always a big investment, and you need to make sure that your car is fully protected by purchasing insurance. Car insurance is the umbrella that protects you and your car from unforeseen eventualities and so choosing the right insurance plan is so important for when it comes time to make a claim. Unfortunately, this is not always so easy as insurance policies are intentionally vague, so read the terms thoroughly, research carefully and get the favorable settlement that you deserve.

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