Automobile insurance is done to make sure that at the time of need, insurance policies will be able to provide proper financial aid to repair or replace damaged parts of a car if the need arises. If the process of insurance claim does not run smoothly then this objective of ensuring insurance will go hay ware. One can overcome this problem by closely getting hold of the terms and conditions of insurance claim that an insurance company follows as well as having access to a good repair station that can give a good estimate of the insurance claim that should be applied for. Policy cancellation, inadequate or false information provided by the insurer, premium increase are some of the reasons why problems are created with auto insurance policies.
The various other problems associated with auto owners insurance are as follows:
Insurance policies remain valid for a certain time period. A lapse in the policy will call for notification to the Department of motor Vehicles. This is done within thirty days of the lapse of the policy. An insurance lapse can make the policy holder pay higher rates of insurance for longer periods of time.
Factors such as age of the driver, type of car and the skills of the driver, tickets and defaults in following traffic rules can be a major cause in increasing insurance premiums. These defaults remain on record for a minimum of three to five years. Taking driving classes to understand traffic rules can work in your favour. This will help you avail insurance coverage at lower rates.
For a quick response from the insurance companies, accidents and other major damages should be reported to the company as soon as possible. A report from the police will further ease the process of claim. In case of emergencies when reporting of an incident is not possible an insurance claim might lapse. This is one of the major problems associated with auto owners insurance.
The total process of insurance claim requires a lot of paper work. This is time taking causing the insurers to bear the burnt of the damage from his pocket initially before the insurance company pays for the damages caused.
Finally the policy that governs the deductible amount is very scrupulous. If a policy holder wishes to pay lower premium rates then he has the opportunity to increase the deductibles. This opportunity however turns sour if the policy holder meets with an accident because then the amount that he can claim from the insurance company gets lowered. This makes a hole in his pocket as the personal expenses to be born by the policy holder increases.
