It is a common practice and mostly followed by everyone to call the insurance companies when their car meets with an accident. The first question that comes to somebody’s mind just after a car accident is, will the insurer pay for the entire damages caused to the car? How long is it going to take for the claims to settle and get back the car to its earlier condition? People often wonder about what to expect from the insurance company following an accident. They feel bewildered and don't know what to do and how to reach after an unfortunate event. And one might wonder about the damage and the claim settlement process. However, it isn’t a big ordeal because reputable car repair insurance companies generally give the right coverage at the right time to its customers. Regardless of the type of car damage, the big car insurance companies repair the car and deliver it in the best condition to its customers.
This article explains the different types of car insurance coverages that are offered by the insurance companies and what to expect from the companies following an unfortunate event or a severe accident.
- Different Kinds of Car Insurance Coverage: Everybody should know there three main types of car insurance coverage that provide full coverage. The three types of insurance are collision, rental car reimbursement insurance, and comprehensive insurance. The optional coverages are collision and comprehensive insurance coverages and that pay towards the car repairs in case of an accident. A deductible is associated with these types of coverages, which generally range between $250 to $ 1000. The customers pay higher premiums for low deductibles; however, if there is a claim following an accident, at that time, the out of pocket expenses are the least primarily due to the higher premium payment. On the other hand, when there is a total loss of the vehicle, in such circumstances, the insurance company pays up to the ACV, which is almost the original price of the customer’s car minus the depreciated amount.
- Comprehensive Insurance Coverage: This insurance coverage covers the damages caused to a car, which are not caused by a collision. Such damages are fire, vandalism, theft, severe storms, falling objects, and different natural calamities which are human out of control while driving. If such disasters hamper the car, reimbursement of the ACV minus the deductible amount takes place.
- Rental Car Insurance Coverage: Being an optional coverage, it is used to pay for the cost of the rental vehicle while the auto is being fixed.
- Collision Insurance Coverage: This insurance coverage pays for the replacement or repairs cost when the car gets involved in an accident, and a collision takes place between two moving vehicles or a moving car and a stationary object. It is essential to have comprehensive insurance coverage in place before the insurer could add collision coverage.
Having both collision and comprehensive is equivalent to having full coverage. Experts recommend going for collision and comprehensive insurance coverages in case of a new car purchase because the value that one will stand to lose will be higher if the car is damaged. The insurance company will pay the cash value of the car minus the depreciated amount; hence the cost of a new car will always be on the higher side, and one can enjoy more coverage than an old car.
What should one do right after an accident?
People generally panic and get nervous right after a car accident. Well, although it is the normal tendency of people, however, the expert says that instead of asking for help and phoning others frantically for help, one should contact the following immediately.
- Emergency services, which 911 if anybody is injured
- The local police if vehicles or property of others are hampered
- The insurance company for reporting the claim
According to an expert attorney, people should act prudently and call insurance right away following an accident. Depending on the statement of the person and the police report, the insurance company determines the person at fault. Generally, a claim adjuster is assigned to oversee the case, and he serves as the insured person’s primary point of contact throughout the entire process of claim. The role of the adjuster is very significant, and he has the following responsibilities:
- As an adjuster, he expects the insured person to give appropriate answers to his queries and provide him with as much as detail as possible
- He collects the statements from the eyewitnesses
- He inspects the vehicle/vehicles involved in the accident and reviews the reports
- Give an estimate concerning damage
Who covers what: When an insured car gets involved in the accident, the first job of the insurance company is to find out the person at fault for the accident. If it is the insured person, then the insurance company covers for the repairs of the car after deducting some deductible amount.
When the driver of the other car is at fault, the other car’s insurer will handle the claim process. However, if the other car’s insurer is not cooperative, in that case, the insurance company of the person pays for the damages caused to his vehicle but requests compensation from the other vehicle’s insurer through a process which is known as subrogation. In this process, if there is a dispute between both the insurance companies regarding who is at fault- both the insurance companies can sue each other to recover the paid claim amount.
On the other hand, if there are minimal damages, no major injuries are caused without significant damage to the property. One can opt for the repairs by himself without filing a claim for the car repair.
As stated above, the first step following an accident is to call the insurance company. If seniors are involved in an accident, they should take help from the local police to settle down and then get in touch with the insurance company.
Automotive enthusiast and tech nerd. Loves to spend his free time traveling abroad besides working on his startup.