Auto Insurance Claims FAQ
If you are covered by an auto insurance policy and incur a loss, you must file a claim for compensation with your insurance company. In order to receive payment, you first must wait for the insurance company to verify the claim and approve it. This can be a complex process at times.
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How Are Claims Processed?
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According to the IFA Insurance Company, after losses have been incurred, you should notify your insurance company. The insurance company will need your policy number, as well as details of the accident. A claims adjuster will estimate the extent of the damage and the insurance company will determine its obligation.
What Is the Time Frame to Process a Claim?
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According to auto insurance company Esurance, most claims are processed within 15 days. However, the amount of time it takes for a claim to be processed hinges on several variables, including the extent and complexity of the damage. In addition, if the company offers compensation that you feel is less than is owed you, you may choose to appeal the claim, thereby protracting the process.
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What Will Happen After I File A Claim?
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If the claim is approved and you accept it, the company will provide you with money to receive repairs on your cars, compensate injured parties for their medical expenses and replace lost or damaged items. According to the Department of Insurance, Financial Institutions & Professional Registration for the state of Missouri, if you appeal the claim and are unsuccessful, you may attempt to pursue legal action against the insurance company through the use of a lawyer.
What Are the Misconceptions About Claims Processing?
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A common misconception that surrounds the claims process is the extent of the insurance company's obligation when offering compensation for a claim. According to the Wisconsin Commissioner of Insurance, when a car is damaged, the insurance company is obligated to pay only to restore the car to the condition it was in prior to the loss. For example, an insurance company may pay for the cost of used parts for the car rather than new ones. In addition, if the car is totaled, the insurance company will pay only the market value of the car, not the price that you originally paid for it.
What Is the Impact of Filing A Claim?
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According to the Wisconsin Commissioner of Insurance, if you are at fault in an accident, the filing of a claim generally will raise the premium of your policy. This is because, due to the recent accident, the insurance company now considers you to have a greater statistical probability of being involved in another accident that will cost money, making you a riskier driver to insure.
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