You might have been insured for a number of years now but still aren’t too sure on some of the possible claims you can apply for, or whether the claim you are planning is valid or not. Here are some of the actual questions most policyholders have some confusion with.
Is there a time limit for car insurance companies to make a payout for a collision or comprehensive claim?
As required by law, insurance companies should make prompt payments within a reasonable amount of time. Simply said, there aren’t specific limits when it comes to making claims payout. However, there could be a slight modification to this. Depending on the claim, the payout may take a little longer, especially when a more intensive and extensive investigation is required. In cases where an insurance company fails to make a payment for either a collision or comprehensive claim within a week an official claim had been received, and a statement declaring repair completed has been submitted, then the insurer has the right to file charges against the provider.
After an accident, my car was declared lost; can I require my insurance company of a replacement cost?
When this happens, the insurance company will only give you the value of the car based on its actual value from the day it was declared lost and not the whole value to replace it for a new one. Here are the determining factors which determine a vehicles’ value: the car’s quality before the reported accident, the retail value of the car and the decrease of its value before the damages caused by the accident.
Is there a need for me to continue paying for my premium even my car gets declared as a total loss?
The answer is yes, you still have to continue the payment until you have returned the license plate of your car to the Registry of Motor Vehicles. It is only by doing so, that a termination to your insurance policy including the premium is done. In case you can’t present the license plate because your car had been stolen or wrecked, report it to the said registry office, obtain a receipt for stolen or lost plates, and present it to your insurance provider so you won’t be asked for premium payment.
Having your queries answered will spare you from some possible conflicts.
