It doesn’t matter how good a driver you are, there will always be instances when you will get into an accident. This is the reason why most states require car owners to have their own auto insurance. Some types of insurance ensure that you are compensated for your loss regardless if you are at fault or not. If you got involved in an accident and this is your first time to file a claim, then there’s a huge possibility that you’ve forgotten the provisions on how you can file for a claim. What should you do then? How do you know that your claim will be accepted or denied?
There actually are of questions regarding car insurance claims and here are some of the most commonly asked with brief answers as well.
Can I ask for a replacement when my car is declared totaled after an accident?
The answer is no. Your provider won’t give you a replacement but you will be paid an amount that is equal to the value of your car when you made a declaration of loss. For the car insurance to know how much you are entitled to get paid off, the assessor will check on the quality of the car before the accident took place. The damages which have caused the depreciation of the value of the car is also considered.
Do I need to continue with the payment of my premiums after my declaration of total loss?
Yes, you still are required to make continuous payments up to the time that you are able to surrender your car license plate to the Motor Vehicles Registry. In the case of stolen cars where plates could not be presented, it is important to file make a report about the incident to the Office immediately. You should also request for stolen car receipts and present it to your provider. These are the only instances that can actually terminate your payment.
Are there payout limits?
As provided by the insurance law, all payments to customers should be made promptly. A payment is considered prompt when it is settled within reasonable range of time, typically a week after the report has been made. There are times though when the release of payment may take a longer especially when a more rigid investigation is required, but you should be notified of the proceedings. If a week has passed from the day the claim had been made and no action had been taken by the company, then the policyholder can take legal action against his/her provider.
