Main menu


Car insurance claims: what to do and what not to do

If you are involved in a car accident, it is important to maintain proper communication with your insurance company. Here's "What to do and what not to do" to remember throughout the claim 

What happens when I submit an insurance claim?

Once the insurance company receives your claim, they will send an officer to review the damage to the property. The officer will determine whether you will receive funds (settlement) for repairs, or a full loss payment.
After filing a claim, the insurance officer will come to examine your property, review the damages, and ask you questions about the damage and the status of the property before the damage.

You can show him the estimates you have earned yourself for damage repair costs to ensure you get a fair settlement.

The insurance officer works for the insurance company.

After the officer submits your claim report, the insurance company can issue a payment, which the officer has agreed to give you so that you can repair or replace damaged property, for example; repair a roof hole, repair your vehicle, or replace your belongings.

Filing an insurance claim is the first part of the journey that has many routes. Read as we highlight many stations along the way.

No matter what route you take, things can get confusing. Write down the names of the people who help you. Ask if there is a status number related to your account. Once an agreement or understanding has been reached, be sure to document everything discussed.

Home and car insurance claim process
Insurance for homeowners

If the homeowner's insurance pays, the cheque is likely to be made in your name and the name of the mortgage holder or lender. Most mortgage agreements require this in order to protect the interests of the lender. Typically, the mortgage server releases a portion of the money before starting work so you can agree with the contractor. As the business progresses, the mortgage server usually releases more money. The rest will be released as soon as the work is finished and when the house passes the inspection.

For more information, download the National Association of Insurance Commissioners' Consumer Home Insurance Guide.

car insurance

When your vehicle is damaged, the insurance company evaluates its value based on age, model and other factors. The damage to your vehicle does not eliminate your liability for making loan payments. When the cost of repair is greater than the value of the car, the insurance company can declare the total loss of the vehicle.

If the amount you owe on the loan is more than the insurance paid for the total loss, you may owe the difference to the lender. This is sometimes called negative stocks. However, some people have a type of coverage called guaranteed car protection (GAP), which covers the difference between the amount due on the loan and the amount paid for the insurance.

Be sure to explain with your insurance company and lender, the type of insurance policy you have, as well as the losses that the insurance will cover and what you will still owe. After the insurance process is complete, if you owe the loan more than the amount paid for the insurance, you will have to pay this amount. If the amount of your insurance coverage is greater than your debt, the insurance company will pay you the difference.

For more information, download the National Association of Insurance Commissioners' Consumer Vehicle Insurance Guide.

Contact your agent as soon as the accident or injury occurs. When you return home after the accident, or even before going to the doctor, contact your agent.

Review and understand your coverage before talking to your insurance company or agent. Read specifically the "Coverage" and "Exclusion" sections of your policy.

Take detailed notes of all conversations you've had with insurance company representatives and write down the names, phone numbers and surnames of the people you spoke to, including the name of your supervisor.

Keep in mind if you have insurance coverage under another policy. Many people have more than one policy that can cover the claim. In particular, check out the homeowner's policies, policies "public" and the materials that come with your credit cards.

Take pictures, if possible, of damage to the vehicle, the scene of the accident, and the injuries sustained.

Be honest and polite with your insurance company. Although the details are embarrassing, it is best to know your insurance company everything that has happened. If you are not honest with your insurance company, your policy may be revoked or coverage rejected.

Understand the difference between replacement coverage and real or movable cash value. If your policy provides alternative coverage, do not settle the loss of personal property against the "actual monetary value". If you have covered the replacement cost, you may be asked to replace the lost items before receiving the full refund.

Keep all meal, housing and purchase bills made in connection with the time you spent filing your claim or recovering from your injuries from the time of the covered event until the final solution with the insurance company.

What should you not do?

Do not provide recorded or written data to your insurance company until you are sure that you understand your coverage. Remember that you are not required to allow your insurance company to record your phone conversation. If you are in doubt, consult a lawyer.

You do not automatically accept the estimate or evaluation of losses that the insurance company gives you. It is very common for insurance companies to seek to have the affected party accept repair or replacement from the octagon or contractor.

Do not sign concessions of any kind until you get legal advice. If you find yourself in a bad financial position after a big loss, it may seem better to accept a premature and inappropriate decision from the insurance company.

But after you sign the discharge, you may remember that more items have been destroyed. For this reason, it is recommended to consult a lawyer before signing an exoneration. Read the exact version of any payment you get from your insurance company.

No cheque with the "final payment" written on it is accepted except in its true location.

Do not ignore the time limits set out in your document. Most policies require proof of loss to be signed within a certain period of time. Be sure to comply with this requirement unless you receive a written notice of waiver of this rule from your insurance company.

If your claim is not correctly modified, many policies allow you to take legal action for only one year from the date of loss. If your claim is not resolved to your satisfaction 11 months after the loss, consult a lawyer immediately. If you do not, you may lose your right to take legal action.

Don't forget that you have a contract with your insurance company. Your insurance company has a legal obligation to provide you with the coverage you promised. Insist on implementing this commitment.

Talk to qualified car accident lawyers today.

This article aims to be useful and informative, but legal matters can be complex and cumbersome. A qualified car accident lawyer can meet your own legal needs, explain the law, and represent you in court. Take the first step now and contact your local car accident lawyer to discuss your unique legal status.