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In a perfect world, a car insurance
accident claim would go smoothly. Unfortunately, countless scenarios
can throw you for a loop. Knowing what to do after an accident can
avoid a hassle. Here are six common car-accident scenarios and tips on
how you can curtail trouble before it starts.
You
slide on a slippery road and drive into a guardrail, damaging your
vehicle. What you should do: Notify your insurer and file a claim on
your collision insurance to cover the damage to your vehicle. Even
though it was a one-car accident, call the police to file an accident
report. A police report will provide documentation of the crash and
make filing your claim easier. It's best to call the police when your
vehicle is still at the scene of the accident.
You
generally will not suffer a premium increase if you didn't cause the
accident. However, if you've made several claims in the past couple of
years, your car insurance company may raise your premium if it has not done so already.
Also,
an insurance company may raise your rates if it finds that you were
driving in an unsafe manner. For example, if the police report says you
were speeding on the slippery road, your insurance company may find you
partially at fault, and thus raise your rates. If you don't have
collision insurance, you'll have to pay the bill yourself for your car
damage.
Your
vehicle is hit from behind at a stop sign. The other driver is found at
fault. You exchange insurance information at the scene, but the other
driver does not report the claim to his insurance company.
What
you should do: Along with exchanging information with the other driver
at the scene, such as address, phone number, and insurance policy
information, be sure to get the phone number of his insurance agent or
the insurance company's claim number. That way, you can contact his
insurer directly if he is negligent in doing so.
You should say, "Here's the number that I have, and this is the damage that was done. I would like you to contact your insured."
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However,
if you contact the other driver's insurance company, many insurers will
tell you that they cannot begin processing a claim because they have
not yet received a report from their policyholder. If that's the case,
ask the company to contact their insured. You should say, "Here's the
number that I have, and this is the damage that was done. I would like
you to contact your insured."
If that doesn't
work, contact your own insurance company and file a claim under your
own collision insurance (if you have that coverage). You will have to
pay the deductible to get your car fixed, but your insurance company
should be able to get it back for you. Your insurer will pick up the
check for the damages, but it will pursue reimbursement with the other
insurance company (a process known as subrogation). In general, it's
easier to deal with your own insurance company because you are a
first-party claimant.
You are hit by an uninsured motorist and you do not have uninsured motorist insurance coverage.
What
you should do: You have few options in this matter. You can make a
claim on your own collision insurance and then ask the uninsured
motorist to reimburse you for your deductible. If they don't agree to
pay you, you can sue him to get your deductible back. If you do not
have collision insurance, your only option is to ask the other driver
to pay for damages. Again, if he doesn't pay you, you can take him to
court.If there are injuries involved, you can also sue the other driver
to pay for your medical expenses and pain and suffering. However, some
states have no-fault restrictions in which you cannot sue the other
driver unless your medical expenses or pain and suffering reach a
certain dollar level.
You
walk into the shopping mall parking lot and find a small dent in your
car. Somebody hit your car and neglected to leave a note.
You may have to pay a deductible that's more than what it would cost to fix your car.
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What
you should do: If it's a small dent, you probably don't want to report
it to your insurance company. Not only would you face the risk of your
premium increasing, but you may have to pay a deductible that's more
than what it would cost to fix your car.
Filing
claims on several minor accidents may result in a premium increase. So
if it costs $600 to fix your dent, and your policy has a $500
deductible, you might be wise to fix the dent out of your own pocket,
rather than risk filing another claim and seeing your premiums go up.
However,
if it's a large dent and the cost to repair it is significantly more
than your deductible, you may want to file a claim with your insurer
under your collision coverage. If you don't have collision coverage,
you'll have to pay for the repair yourself. Also, if you live in a
state where you can purchase uninsured motorist property damage
insurance, you can make a claim on that coverage.
You
are carpooling with four other people in your car. Another driver
crashes into the rear of your vehicle and is found at fault. The
at-fault driver is carrying only the minimum bodily injury liability
insurance. One of your passenger's medical expenses exceeds the
at-fault party's coverage by $20,000.
What
you should do: Most states require that you carry Personal Injury
Protection (PIP), which is coverage that pays for medical bills, lost
wages, or pain and suffering that you or any of your passengers incur
from an accident in your car, regardless of who's at fault. After the
at-fault party's liability coverage has been exhausted, your PIP
coverage would kick in and pay for the rest of the damages.
If
your PIP money is exhausted and the medical bills remain, your
passenger can sue the other driver for the rest of the damages. You, as
the driver carrying the passengers, are not on the hook for any of the
liability because you are not at fault in the accident.
You
are hit by a motorist who is clearly at fault. He offers to pay for the
damage in cash rather than make a claim on his auto insurance.
What
you should do: If you are injured or if you even have a hint of being
injured, this is a bad idea. Never take a cash settlement on the spot.
You don't know how expensive your injuries may turn out to be. If you
are injured, your PIP will pay for your medical expenses and any lost
wages that you may incur. Once your PIP is exhausted, your health
insurance will kick in and pay for the rest of your expenses. If you do
not have PIP or health insurance, you can sue the other driver to pay
for your medical bills, pain and suffering, and any lost wages as a
result of the crash.
If you choose to
accept the other driver's cash offer for the physical damage to your
car, never take money on the spot. Make sure you know exactly how much
it will cost to repair your vehicle. If you don't get an accurate
estimate, you could end up paying for a portion of the repairs
yourself. For example, if the other driver offers you $1,000 to pay for
damages and you later receive an estimate showing that it will cost you
$1,500 to repair your car, you may have to kick in $500 of your own
money.
Also, carefully examine any
documents you may be required to sign that absolve the other driver of
any further liability. If the other driver has consulted an attorney,
it is likely that the attorney has drafted a document that will take
away your right to sue later. If you are uncertain about signing the
document, consult an attorney. Of course, hiring a lawyer is an expense
that you'll have to pay for.
Even if you
plan to accept the other driver's cash offer, follow the same steps as
you would with any accident, which include exchanging insurance
information with the other driver and filing a police report. That way
you can still file a claim with your insurance company if the other
driver reneges on the deal and refuses to pay you. Your insurance
company will pay for the damages, but you can still sue the other
driver to get your deductible back. (Keep in mind that car insurance policies require you to report your claim promptly if you want coverage, so don't delay too long.)
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