What to Expect After Filing an Auto Insurance Claim

Posted by Rebekkah On November - 4 - 2013 0 Comment

Automobile accidents can be one of the most frightening, stressful and traumatic events in life and not knowing what to do when dealing with an insurance provider after a claim is filed makes an already awful experience that much more difficult.. Most people have only a vague idea of what to expect from their auto insurance provider after they file a claim. In fact, frustrating as it can be- the difficulties encountered when dealing with an insurance provider after a claim can seem completely random. Luckily there are ways to prepare for what to expect assuming everything was taken care of in proper order at the time of the accident.

First, and probably most important, is knowing your insurance company and knowing your rights. For instance, you should definitely be aware that an insurance company cannot legally drop anyone’s coverage unless the policyholder has violated one of three conditions: they didn’t pay the premium, knowingly gave false information when applying for insurance or had their driver’s license revoked. Without defaulting on one of those rules, the direst recourse a company can take is choosing not to renew the policy for the next cycle. If you suspect your provider means to refuse renewal (or know as much) start shopping around.

Should you find yourself required to shop around for coverage, there are a few important things to ask. Those include: inquiring about the company’s specific rules regarding policy cancellation, the accident penalty premium increase rate or if there is one, and the company’s renewal and nonrenewal guidelines. Knowing all of these beforehand for a particular provider will allow for either a greater sphere of protection or at least a greater amount of preparation time if the policy is to be dropped.

The next step is knowing what to expect when you are at fault for the accident. With most insurance providers, one or two accidents within a three year period will not cause a policy to be dropped or a renewal refused, but chances are collisions are going to cause an increase in premiums upon the next renewal. Lots of companies do, however, provide their policyholders with either an accident forgiveness plan, which means forgiving an at-fault accident after a certain amount of time, or allows for a non-increase in premium after a single at-fault accident for tenured policy holders.

The last step in preparing is to be proactive in looking for auto insurance coverage from another provider. It is not particularly helpful to enroll in a new policy, but having one ready to go is the ideal situation, since notice to not renew a policy is generally given right before the renewal date. By having a new policy ready to go, coverage can be attained soon after or in some cases, the day of which the previous policy is dropped.

By being prepared beforehand, the car accident ordeal and insurance claim experience can become less frightening. Knowing what to expect in terms of premium increases, policy drops and (non)renewals, is key in when it comes to filing an auto insurance claim.

About the Author:

Edward Oberg, currently on hiatus from the insurance game, now spends his time reading pulpy genre novels, shaking his head in dismay at the state of movies these days, haunting yard sales and hunting for the monster brook trout that delights in mocking him. He has vowed to defy the accepted wisdom regarding boring insurance reps by being extremely interesting.

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