Accidents could happen to everyone at any time. Thus, the question is, do you know what you should do if this happens to you? Get informed with these 7 Things to Know before you make a claim
The aim of auto insurances is to cover all car costs that happen from any undesirable events, which is an accident. You pay up the rates, nevertheless once your car is damaged, you are afraid of the higher insurance premiums because of the filed claim.
This is oftentimes related to the auto insurance policies, specially the exceptional conditions that are enclosed inside. Thus financial consequences commonly are applied in claiming it which could be surprising.
The followings are 7 things that you should acknowledge before you file any car insurance claims.
1. Car Insurance Policy Renewal
Normally, insurance firms publish policies which can be renewed frequently.
Yet, the company can choose not to renew the policy when the existing term ends.
The decision taken are affected by many factors, therefore there are no solid rules whether the policy is going to be renewed or not.
Still, the general rule is that previous accidents and claims do affect this decision.
2. Payment for the claim
Mostly, the insurance companies want excess payments for the claims.
This can be accomplished by a one-time-payment or pay it by installments.
But, it is advisable not to file a claim and paying the cost by yourself if the claim is small.
3. Claim Penalty
No-claim throughout the year could
lead to a bonus given by your insurance company, which is a discount of
your auto insurance rates.
This means that filing a claim might lose part or even all of the bonus.
It is suggested to obtain in-depth information before buying any car insurance policy.
You may ask the insurance company representative to get a better understanding of the policy.
This includes the claim penalty, non renewal guidelines and the no-claim bonus.
4. Factors of Accident
The fact is that if accident
happens because of your fault, then you might get your policy dropped,
or at least, getting a higher increase rate as the penalty.
But, minor accidents might get a 'forgiveness'.
This depends on the claim numbers and the attributes of the person himself, such as the history of tickets and accidents as well as whether he is drunk driving or not.
5. Report on Accident
It is recommended to file a report to your car insurance company and police department whenever any accidents happen.
The reason for this is so that damages, injury and evidence can be assessed thoroughly as soon as possible.
Failure to do so might result in the the investigation delay and could even lead to unable to prove that you are not at fault.
6. Garage Cost
Most policies do not cover the cost of storing your car while it is waiting to be repaired.
The garage cost alone can add up to a remarkable amount, especially when the claim is being assessed.
To prevent this, you can obtain an agreement with the insurer about who is going to pay the garage costs.
Of course, having your own garage at home to keep your car.
7. Contact your agent
Last but not least, always ask your agent to get the best advice on what should be done and what should not.
This is since the fact that each insurance company has different rules and features.
Short note about the author
Ron is the owner of Auto Insurance Cars- http://www.AutoInsuranceCars.com
This article is licensed under Creative Commons Attribution- NonCommercial- NoDerivs
Source: http://www.AutoInsuranceCars.com