The main objective of car insurance is to cover any car expenses that happen from an unwanted event, which is an accident. You pay up the premiums, however when your car is damaged, you fear of a higher insurance rates because of the claim. This is often related to the policies of the car insurance, especially the special conditions that are included in it. And thus financial consequences usually are applied in claiming it which could be shocking for some.
Here are 7 things that you should know before you make auto insurance claims.
1. Non-renewal Auto Insurance
Generally, insurance companies write policies which are renewed frequently such as annually.However, the companies can decide not to renew a policy once the existing term ends. Their decision can be affected by many factors, hence there are no firm rules about when the companies choose not to renew. However, previous claims and an accident where are you are at fault do affect the decision of the policy renewal.
2. Payment towards the claim
Most of the time, the insurance company requires an excess payment when you make a claim. This can be achieved by a one-time-payment or pay it by instalments. However, it is suggested that if your claim is small, it is better not to make a claim and paying the cost by yourself.
3. Penalty for Claiming
Your insurer usually gives a bonus for making no claim throughout the year, which is a discount on the cost of insuring your car. However, making a claim might lose part of even all of the bonus. It is highly recommended to get a clear information before purchasing a policy from the insurance company representative. This includes the penalty of claiming, non renewal guidelines and the “no claim” bonus. That way, there will be no hidden surprise. In addition, you might also refer to the conditions in which you might lose the “no claim” bonus in the policy and even ask the insurance before make a claim.
4. Accidents Factor
The general idea is that if the accident happens because of your fault, then prepare to get your policy dropped, or at least, getting a higher increase rate. However, minor accidents might get a ‘forgiveness’ depending on the number of the claims and the attributes of the person himself, such as the number of tickets, the number of accidents and whether he is drunken driving or not.
5. Accident Report
It is always advisable to make a report to your auto insurance company and local law department whenever a car accident happens, even if it is just a minor car accident. This way, damages, injury and evidence can be investigated thoroughly as soon as possible. Failure to do so delays the investigation process and makes it harder to prove that the policyholder is not at fault.
6. Garage Cost
Auto Insurance Claim Some of the policyholder does not realize that most policies do not cover the cost of storing your car while it is waiting to be repaired.
The garage cost than can add up to a significant amount, especially when the claim is being accessed. To prevent this, you can get an agreement with the insurer so that they pay the garage costs while accessing your claim. Of course, keeping the car at home rather than at the garage is also an alternative.
7. Always ask your agent
Finally, whenever there is no clue what should be doing when an unwanted even happens, always ask your agent to get the advice on what should be done.