What are the things I need to know about insurance claims?


While it is true that one should familiarize himself with the fees he has to pay and the coverage of his policy, it is also important that he knows the process of filing a claim. An insurance claim is basically availing of the benefits from an insurance policy when the policy holder encounters an accident and damages other people’s cars or properties or his own. No reimbursements are given when there are no claims filed. The thing though is that not all claims are honored immediately. An assessment or an investigation is done first before a payout is made. It will only be after the investigation that the insurance company will decide whether or not a customer will be paid or not or if the claim is qualified for reimbursement.

A pre-requisite of a paid insurance claim is a premium regularly paid for. The money collected from the policyholders’ premiums serves as fund for the company to be able to pay out all valid claims. Typically, an insurance company representative helps a policyholder file a claim. The agent will enter through a negotiation phase concerning the claims which has been filed with the insurance provider. Not all car accidents can actually file for a claim. There are times when the car owner just opts to carry the expenses personally especially when the damage done is not that grave and filing a claim can cause premiums to increase.

Unfortunately, reimbursement for repairs is not always immediate. An estimate will still need to be done to make sure that the cost being filed for is reasonable enough or to make sure that the accident reported is free of fraud. An appraiser’s decision is always final and will typically end the investigation. Once he declares that the amount collected is reasonable enough and the accident was caused naturally then reimbursement follows. On the other hand, if the claim is rejected, the policy holder cannot file an appeal.

It is important that you keep a regular payment of your premium because non-payment will only lead to non-collection of claims or the cancellation of the policy. Aside from non-payment of premium, a claim can certainly be denied when, after the investigation, it had been found out that the coverage does not fall to any of the conditions included in the coverage. One of the conditions when a claim gets declined is the Act of God (when a car is damaged by hurricanes or earthquakes) or if the damage was due to the negligence of the insured.

To save your time, make sure that that you know the basics of your insurance claim before even filing it. Be reminded of the information provided above to avoid any misunderstanding between you and your insurance provider.