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Settling An Auto Insurance Claim
You’ve just been involved in a crash with your vehicle.
Do you know what to do? Who should you notify? Should you file
a claim with your insurance company and if so, what should you
expect from them? These are just a few of the questions motorists
face once they’ve been involved in a crash. This information
should assist and prepare you for certain expectations when you
consider submitting an automobile insurance claim.
Before the crash
Take the time to review your auto insurance policy
and coverages. It is important that you understand what is and,
more importantly,
what isn’t covered by insurance. All automobile insurance
policies have exclusions, and it’s best to know what those
exclusions are prior to a loss. Many times you can obtain coverage
for an exclusion by purchasing an endorsement, which ”buys
back“ policy coverage.
•
Tip: In lieu of increasing car prices, consider
purchasing a “loan/lease
GAP” endorsement for your vehicle—especially if you’ve
opted for a loan/lease with a long term (48+ months). In the event
of a “total loss,” this coverage provides protection
when the vehicle’s loan or lease payment exceeds the vehicle’s
worth or Actual Cash Value (ACV).
As an example, say you owe $17,000
on your car’s loan or
lease. A crash totals the car and the insurer pays the vehicle’s
ACV which is $15,500. This GAP endorsement would pay the difference
between the car’s value and what you owe (in this case, $1,500).
Without this coverage, you would be responsible for payment.
At
the crash scene
Begin by checking with vehicle occupants and pedestrians
in the vicinity for injuries. If medical assistance is needed,
contact
local law enforcement officials immediately, indicating the location
of the crash and extent of injuries. If someone is injured, don’t
attempt to move them—keep them as comfortable as possible.
Cooperate with the law enforcement officials at the scene, providing
them
with whatever information is requested.
While waiting for
law enforcement officials, do your best to obtain and document
the following information:
- Accident information (date, time, location)
- Other vehicle(s)
information (make, model, color, license plate number, general
description of damage)
- Other driver(s) information (name, address,
phone number, drivers license number, Social Security number,
date of birth, insurance
agent and company contact information—including phone
number and insurance policy number, if possible)
- Vehicle owner
information, if different than the driver (same information
as above)
- Witness information (names, addresses, phone numbers)
- Law enforcement
and medical assistance information (was crash reported to police,
sheriff or highway patrol; obtain name and badge
number of attending officer; was a citation issued)
- Description of the accident (example: heading north on High St., approaching intersection
of 5th Ave. Other car was heading
east on 5th Ave., etc.). It’s best to sketch a diagram, labeling
cars A, B, C, etc., using arrows to indicate paths of the
vehicles involved in the crash.
OII's Auto Accident Checklist brochure guides you through this
process at the crash scene. Download the brochure at www.ohioinsurance.org/pdf/autacdntlist.pdf and keep in the glove box of your vehicle.
After the crash
To file or not to file a claim—that is the question...It
is your responsibility to contact your insurance agent
or company representative as soon as possible after the crash.
Discuss the
chain of events with your insurance professional before
deciding if a claim should be filed. Some policyholders select
high
deductibles ($500, $1,000 or more) as a cost-savings measure. If the amount
of damage is close to your policy deductible or if you’ve
filed multiple claims in recent years, you may want to
consider not filing a claim. Your insurance professional
can provide
guidance on what’s best for you.
If you are filing
a claim, provide the insurance professional with all
necessary information gathered at the crash scene.
In turn,
the company should inform you of their claims procedures
so you understand the process.
Keep your agent or company
notified of any developments associated with the claim. For
instance, if you receive legal documents
from the other parties involved in the crash, provide
these to your
insurance company immediately. Keep in mind that your
auto insurance policy provides coverage for the insurance company
to defend if
you are sued as a result of the crash.
If you suspect
the other driver was operating the vehicle
without automobile insurance coverage, file a Motor Vehicle
Crash Report
with the Ohio Bureau of Motor Vehicles (BMV). Report
forms are available from local law enforcement officials,
the
BMV and your
insurance agent or company. Form 3303 is also available
from the BMV’s Web site at http://bmv.ohio.gov/pdf_forms/3303.pdf.
What
to expect when settling the claim
The insurance company will
ask you to complete some forms and ask for details about
the crash. This is why it’s a good
idea to gather as much information as possible at the
crash scene.
They will arrange for you to meet with a claims adjuster.
This individual may ask to come to your home or business
to meet
with you, will request to see the vehicle and will
probably ask you
more details about the crash. The adjuster will more
than likely ask if your comments can be tape recorded. Sometimes
this step
is conducted via phone.
Some claims-settling tips
- Track all of your expenses associated with the crash.
They may be reimbursable under your auto insurance policy. Some
examples
of these expenses include mileage for a visit to
the doctor’s
office as a result of the crash, the cost of a
police report, or meal expenses if called into
court for the
crash.
- Don’t have the vehicle repaired before
the insurance company claims adjuster has evaluated
the vehicle’s
damage. But, protect the vehicle from
further damage (i.e.,
cover broken
windows with plastic).
- Keep copies of all your
paperwork for future reference.
- If the
vehicle isn’t drivable, don’t abandon
it at the crash scene. Make arrangements
to have the
vehicle towed to
your home or a garage or repair facility of your
choice.
- You have the right to choose your repair shop. Your insurance
company may request you to obtain written estimates
from
vehicle repair facilities indicating the cost to repair the vehicle. Some insurance
companies won’t ask for estimates, but will
request you bring the damaged vehicle to their
claims facility
for an analysis
of
the damage. Also, some insurers provide a list
of recommended shops to save policyholders time
and hassle. But remember,
it is always
your choice where to take your car for repairs.
- You have the right to negotiate the settlement
with the claims adjuster. If you’re
having a difficult time with the adjuster, contact
the
company directly
and ask
to speak with
the consumer
services department or the claims division manager.
If you still find the settlement unacceptable,
you can use the arbitration
or
appraisal procedures outlined in your insurance
policy. Most arbitration and appraisal procedures
work by you
hiring an
independent arbitrator
or appraiser at your expense. Once the arbitrator
or appraiser agrees with you or the company, the
claim
is settled at that
amount.
- If you feel that you’ve exhausted
all efforts with the insurance company, you can
contact the Ohio Department
of Insurance Consumer
Hotline at 1-800-686-1526. The Department,
which regulates all insurance agents and companies
within the state,
will provide you
with information and advice on how to proceed.
- If you still can’t seem to reach an agreement,
you always have the option of seeking legal advice.
Remember,
you are responsible for these legal fees. It is important
to note that by obtaining legal counsel you sacrifice
your ability to represent yourself
directly with
the insurance
company. This means all future correspondence regarding
the claim will be handled through your attorney.
When a car is a “total loss”
Consumers and insurers
are faced with difficult decisions when extensive vehicle damage
occurs
resulting from
a covered loss.
When the cost to repair a vehicle exceeds its ACV
the vehicle will probably be considered a “total
loss.”
For more information on “total
loss” vehicle
situations, see page 17 of the Ohio Department
of Insurance Ohio Shopper's Guide Series, Auto
Insurance: Helping Your Choose & Understand
Your Auto Insurance at http://ohioinsurance.gov/ConsumServ/Ocs/CompleteGuides/CompleteAutoGuide.pdf.
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The Ohio Turnpike has become a faster and more
dangerous place to drive. Crashes involving all types of vehicles
have increased 27% since the truck speed limit was raised in
Fall 2004 from 55 mph to 65 mph. And wrecks in which a truck
was involved are up even more – at 36%.
(Ohio State Highway Patrol, from Cleveland
Plain Dealer, 7/25/05) |
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