What Insurance Do I Have?
There are two types of auto insurance you need to know about if you have an
accident. One is the insurance you pay for and how it can help you. Two is the
insurance another person or company has paid for and how it can help you.
Let’s start with your insurance. There are four types of insurance you
have possibly paid for: liability, comprehensive, collision and uninsured/underinsured
motorist.
Liability – this is coverage you have purchased to pay another person
money for accidents which you cause. Your policy will have a page attached to
it, the declaration page, and it will explain the total amount of money the
insurance company will pay to another person for your negligence. This is called
the policy limit of coverage. So if you have an accident and your policy says
you have $50,000 in liability coverage and all of the damages to the other person
are $100,000, you are underinsured. You could be liable for the excess amount.
Comprehensive – This is insurance you may have purchased that will pay
if something happens to your car that is not the result of a wreck. Each policy
defines this coverage specifically. Generally, this coverage will help you if
a tree falls on your car or it is vandalized somehow. You probably have this
coverage if you are making payments on your car. Read your policy to see what
it will cover.
Collision – This is insurance you may have purchased that will repair
your car if you are involved in an accident with another person. Each policy
defines this coverage specifically.
Med Pay – This is insurance you may have purchased that will pay to you
a limited amount of money to cover medical bills for you or an injured family
member as a result of a covered accident. This is not the same as major medical
insurance and will always have limits. Most often these limits will be $5,000
to $10,000.
Uninsured/Underinsured Motorist – This is coverage that pays to you.
If you are in an accident and the person who causes the accident has no insurance
or does not have enough insurance, then your insurance company can pay to you
money up to the amount listed in your declaration page. Because many people
driving today have no insurance or do not have enough, this is inexpensive coverage
that almost every person should have.
Where to Look
When you purchased your insurance, you should have received a policy. This
document normally is long and full of legal terms. The first place you want
to look is on the declaration of coverages. This is normally a one page sheet
and it will tell you the types of coverage you have and the maximum amounts
of money your insurer will pay for each type of claim. Look this over carefully.
If you can understand it, read your policy! If you can’t, have someone
read it for you. How can you fight if you don’t don’t know what
weapons you have?
What do I do if I have a claim?
First, you must notify your insurance company immediately. Second, your claim
must be covered. Again, read your policy and declaration pages so you understand
what coverages you have. Once you understand your coverage, you must notify
your insurer and get all the forms required to make a claim. It is very important
that you complete these forms accurately and within the time required as best
as you possibly can.
Next, many times the insurance company will ask for you to provide a recorded
statement. This is designed to get you to tell them the facts and to also get
you to say something that will benefit the insurance company in denying your
claims. Insurance companies will often use this recorded statement to later
say you have no coverage or your claim is worth less money that it is. Be very
careful with this statement. First, we recommend that you speak with an insurance
lawyer before you give such a statement. If you choose to go on your own, then
be careful. Be truthful and do not speculate about anything. Above all, read
and understand your policy before you open your mouth.
Keep a diary. This process may go on for months, even years. You will never
remember what they say or how they treated you. Every time you call and leave
a message, write it down. Every time you get a new adjuster, write it down.
Every time they are rude write it down. This diary will be of great help if
you have to sue them.
Do as much investigating as you can. Make sure you talk to witnesses. Make
sure you keep any original pictures. Skid marks and measurements can be critically
important to place blame. If the accident is another person’s fault, get
all the evidence you can. If there are skid marks, take photos and measure.
Get a long tape measure, measure off the distances and take a photo of the tape
measure documenting in the photo these distances. With the insurance companies,
you can’t have too much evidence.
Document the damage to all vehicles. If pictures were not taken at the scene,
then find where all cars are and take pictures of the damage. These pictures
will tell more of the story than you know. If the accident is not your fault,
these pictures will often help you convince the insurance company.
If you are thinking, I don’t have time for this nonsense, then think
of it this way: If your coverage is $50,000, would you spend one afternoon of
your week to earn $50,000? Remember, this is your money at stake and they will
do whatever they can to keep from paying you what is rightfully yours. Do your
homework. Every penny they don’t pay you, they save!
If you are hurt get the medical treatment you need. Not only is this the thing
to do for your own health, but it is very important that your medical injury
is documented by a healthcare professional. If you say it hurts, that’s
one thing, but if a doctor says it hurts, that’s another story. Get medical
help. Remember what you say to your healthcare providers is being written down.
Only tell them the truth and do not exaggerate. The insurance company will get
all of your medical records. They will read them and if you are exaggerating
or telling stories they will use this to help deny your claim. Be honest, it
will help later.
We talked about different types of coverages earlier. This is important to
understand while you are in the claims process. If the accident is your fault,
you must notify your insurance company to make sure that they protect you. If
the accident is another persons fault, you must notify your insurance company
so that if your uninsured/underinsured coverage is reached then they will be
there to be responsible.
If the accident is your fault, make sure that your insurance company knows everything
and don’t do anything to cancel your coverage. Call them on a regular
basis and make sure that they are working on resolving your claim. Document
what is done and said in case they do not act in your best interest. Remember,
you have paid them to protect you. They are trying to save money. Their attempts
to save money may drag this out and put you at risk. Watch what they are doing
and make sure they are protecting you.
If the accident is another person’s fault, then their insurance company
will be responsible to pay for your damages. But remember, if they do not have
any coverage or they do not have enough coverage to pay for your damages, then
your uninsured or underinsured motorist coverage should be there to pay for
what the at fault person does not pay. Keep your insurer in the loop.
What to do if my claim is denied
First, you must understand that because you purchased this insurance, the insurance
company owes you a special duty of care. This simply means that they must adequately
investigate your claim in a timely manner. They must also look over all of the
facts discovered and logically evaluate these facts, giving you the benefit
of any doubt. Many times, insurers will deny a claim because they say they don’t
have enough information. If your insurer is saying this, make sure that you
provide to them all that they need to make a fair decision.
It is very important for you to make sure your insurance company documents
the exact reason why your claim is being denied. If your insurance company has
told you that it is denying your claim without specific reasons, you should
demand that they forward to you in a letter the exact reasons why your claim
is being denied. Once you look over their stated reason, you should attempt
to address it with them if possible. An example of this would be if they deny
your claim based upon the absence of certain materials such as medical records.
Get all of the medical records they say they need as soon as possible. After
the denial, it is very important for you to determine how much time you have
to respond. Some companies provide appeals processes for denied claims. You
must read over the denial material sent to you or even ask your adjuster if
there is an appeal process. If there is such a process, you must decide if you
want to appeal or move forward with a civil lawsuit. Some federal and state
laws require that you go through the appeals process before starting a civil
lawsuit. Also, each state provides a certain period of time in which you must
act before your time runs out to bring a lawsuit. Once you have your claim denial,
it is important for you to get a lawyer to help you, who is familiar with the
insurance laws in your state. It is very important not to let your time to sue
your insurance company run out. After it runs, you will not be able to bring
any lawsuit against your insurer.