Auto Insurance: Are You Covered?

Auto insurance is a necessity for all car owners, and with good reason. It provides financial protection in the event of an accident, and in almost every state, it's required by law. Not only does auto insurance cover damages to your car and others' property, but it also provides coverage for injuries sustained by you and others in an accident. When purchasing auto insurance, it's essential to review the application carefully to ensure that the coverages, policy limits, and deductibles meet your needs.

There are also various types of auto insurance coverages available, including bodily injury coverage, property damage coverage, and uninsured motorist coverage. Additionally, optional coverages like emergency roadside assistance, rental reimbursement, and mechanical breakdown insurance can provide extra protection. When choosing an auto insurance policy, it's important to consider factors such as your driving history, age, location, and vehicle type, as these can impact your premium.

By understanding the different coverages available and selecting the right policy for your needs, you can ensure that you have the necessary financial protection in place.

What to do if you've been in an accident

Being in a car accident can be stressful, but it's important to keep a calm and level-headed demeanor to ensure you take the right steps to protect yourself financially. Here is a list of things to do if you've been in a car accident:

At the Accident Scene:

• Stop your vehicle: It is important to stop immediately and move only if it is safe to do so. Failure to stop can result in legal consequences.
• Call 911: If anyone is injured, call 911 for emergency medical assistance. If another driver is at fault and drives away, or if you suspect insurance fraud, call the police.
• Exchange information with the other driver: Collect their name, phone number, address, insurance company name, and policy number. Take a picture of their insurance card and driver's license. Give them your information as well.
• Gather witness information: If there are witnesses, ask for their names, addresses, and phone numbers.
• Document the accident: Take pictures of the accident scene, including the damage to all vehicles involved, license plates, and street signs. Make notes about the location, time, weather conditions, traffic conditions, road markings, and what happened.
• Notify your insurance company: Call your insurance company as soon as possible to report the accident. Get the name and contact information of the adjuster assigned to your claim.

After the Accident:

• Obtain a police report: If the police are called to the scene, ask for a copy of the police report for your insurance company.
• Seek medical attention: If you or your passengers are injured, keep medical records and bills to show your insurance company.
• Start the claims process: Inform your insurance company about the accident, even if you are not at fault. You can choose to file a claim with your insurer or the other driver's insurer.
• Get your vehicle repaired: Your insurance company may provide a list of preferred body shops, but you can choose where to take your car for repairs. They will provide a repair estimate, and if the repairs cost more, the body shop will provide a new estimate to your insurance company.
• File a claim with the other driver's insurance: If the other driver is at fault, you can report the accident to their insurance company, which should cover your car repairs, medical bills, and a rental car.
• Be cautious of towing scams: If your car needs to be towed, you can tell the police to take it to a trusted car storage lot or body shop.

Remember, it is important to remain calm, gather as much information as possible, and contact your insurance company promptly to ensure a smooth claims process.

How to compare car insurance quotes

Comparing car insurance quotes is the best way to get cheaper insurance. The average comparison shopper saves $60 per month on their car insurance by doing so, which amounts to over $700 a year.

• Determine your budget, the type of insurance you need, and how much coverage you require. The average U.S. driver pays $135 per month for car insurance, so that can be a good starting point.
• Gather the relevant information, such as your Social Security number, driver's license number, vehicle identification number (VIN), and current coverage details.
• Use an insurance comparison website. These websites allow you to compare prices and coverage options from different companies at the same time, and some even provide real-time quotes.
• Research companies with the best quotes. The largest insurance companies won't always have the best prices, so it's important to do your research. Third-party websites like J.D. Power and AM Best can help by providing analyses based on customer feedback and financial strength.
• Select the best quote for you. Review the quotes again and choose the one that best meets your coverage needs and budget. Then, complete the application for your new policy.
• Compare quotes again at renewal. When your policy comes up for renewal, take time to compare car insurance quotes again to ensure you're still getting the best deal.

It's important to note that while price is an important factor, it's not the only thing to consider when comparing car insurance quotes. Your coverage choices and the insurance company's reputation and customer service should also be taken into account.

What to do if the insurance company doesn't contact you

If your insurance company isn't getting in touch with you, there are several steps you can take.

Firstly, recognise that ignored phone calls may not be intentional. It could be that your case has been reassigned to a new adjuster, or that the company has out-of-date contact information. Leave a voicemail explaining that you are awaiting a response and include your latest contact details.

If you still don't hear back, keep a record of all correspondence related to your claim, including copies of emails, letters, and notes from phone conversations. Take photos or videos of any damage to your property as evidence to support your claim.

If the company is still not returning your calls, they may be using a bad faith tactic to try and reduce the value of your claim. In this case, you could seek benefits from your insurance carrier instead, or file a bad faith claim. Contact an insurance claim attorney to assist you with your response.

If you are waiting to hear from the other driver's insurance company, there are a few things you can do. If you know the other driver's insurance company, pass this information on to your insurance provider. Never reach out to another insurance company on your own. If you don't know the other driver's insurance company, get a 'declarations page' from your insurance company to see the extent of your coverage. You should also get a copy of the police report, which may include the name of the other driver's insurance company.

How to file a car insurance claim

No one wants to think about using their car insurance, but in the event that your vehicle is damaged, you will need to file a car insurance claim to receive assistance with repair costs. Here is a step-by-step guide on how to file a car insurance claim.

Step 1: Call Your Insurance Company

As soon as an accident happens, call your insurance company. Even if the accident seems minor, it is important to inform your insurance company about the incident and find out if your policy covers the specific loss. If you have been in a car accident, call your insurance company from the scene, if possible. If another driver is involved, their insurer may offer you rental car coverage. If you are at fault, check your policy to see if you have rental car coverage.

Step 2: Use a Mobile App

Many insurance companies now offer apps that allow you to report a claim, check its status, upload photos, and perform other tasks. Some apps even allow you to notify the insurance adjuster about what happened by visually recreating the accident.

Step 3: Collect Information

Write down the following information:

• Which vehicle on your policy was involved?
• Location and time of the incident
• A basic description of what happened and how severe the damage is
• If another driver is involved, document their name and contact information, insurance company and policy number, vehicle's make, model, and license plate number, and state, and the names of any passengers.
• Get the contact information of any witnesses, as their perspective may help insurance adjusters determine who is at fault.
• Take photos of the damage to your vehicle and any other vehicles involved, as well as photos of the surrounding area and the entire scene.

Step 4: Talk to the Police

If you are dealing with damage resulting from a car accident, call the police to the scene, as an official police report will likely be required to file a claim. Do not admit or accuse any other driver of fault—the police and your insurance company will ultimately decide who is to blame. Get the badge number and phone number of the responding officers, as this information will be useful if you need to contact them later for additional details.

Step 5: Keep Track of Paperwork

Keep all paperwork related to the accident, especially receipts. Depending on your policy, you may be able to get reimbursed for towing or other immediate services. Having this paperwork on hand will also help you describe the event to your insurer.

Step 6: File a Claim with Your Car Insurance Company

Contact your insurer as soon as possible. Give as much detail as you can about the situation and be prepared to share all the information you have gathered. Make a note of the claim number your insurer provides, and then wait for an insurance adjuster to contact you to settle the specifics of your claim.

Step 7: Schedule a Vehicle Inspection

An insurance adjuster will usually request that you schedule an inspection of your vehicle at a certified repair shop. The results of their evaluation will let you know if your vehicle can be repaired or if it is a total loss.

Step 8: Check if a Rental Car Will Be Provided

If you expect to be without a vehicle for an extended period, check to see if you have rental reimbursement coverage in your policy. This coverage will help you pay for the cost of using a rental car while your claim is processing or while your vehicle is being repaired.

Step 9: Know Your Deductible

Before making any repairs, find out your deductible, which is the amount you need to reach before your insurance starts providing payment. If the cost of repairs is less than your deductible, you will have to pay for everything yourself.

Step 10: Understand Your Coverage

Understand your coverage and follow the claims process outlined in your policy. Your insurer should provide a timely and clear explanation of their coverage decision and how they will pay your claim, with timely responses to your questions.

Step 11: Choose an Auto Repair Shop

Typically, the choice is up to you when it comes to choosing an auto repair shop. Talk with the insurance adjuster about what kind of parts they want to use to fix your car. The adjuster may recommend using Original Equipment Manufacturer (OEM) parts or non-OEM parts (also called aftermarket parts). If you insist on using new OEM parts, you may have to pay the difference in cost.

Step 12: Receive Your Insurance Payout

When the insurance adjuster determines the claim payout, they will go over your options for receiving it. You may receive a payout and arrange for your car to be repaired on your own, or have the adjuster coordinate repairs and pay the repair shop directly.

How to save money on car insurance

Car insurance costs an average of $143 a month, but there are many ways to save money on your premiums. Here are some strategies to lower your car insurance costs:

• Shop around for insurance: Prices differ from company to company, so it's worth getting at least three quotes from different insurers. Compare identical policy coverage and limits to ensure it's a like-for-like comparison.
• Take advantage of discounts: There are many common discounts available, such as for insuring multiple vehicles, having safety features, being a good driver, or being a student. Ask your insurer to review all the discounts you qualify for.
• Drop insurance you don't need: If your car is old and not worth much, consider dropping collision and comprehensive insurance, which covers damage to your vehicle. If your car is worth less than your annual coverage plus the deductible, it's probably not worth keeping this insurance.
• Choose a cheaper car to insure: The type of car you drive affects your insurance premium. Generally, safe and moderately priced vehicles, such as small SUVs, are cheaper to insure than expensive cars.
• Increase your deductible: By choosing a higher deductible, you can significantly lower your premium costs. Just make sure you have enough money set aside to pay the higher deductible if you need to make a claim.
• Improve your credit score: In most states, your credit score is a significant factor in determining your insurance premium. Improving your credit score through timely loan and credit card payments, keeping credit card balances low, and only opening new credit accounts when necessary can help lower your insurance costs.
• Reduce your mileage: Some companies offer low-mileage discounts for motorists who drive less than the average number of miles per year.
• Bundle your insurance: Many insurers will give you a discount if you purchase multiple types of insurance from them, such as homeowners and auto insurance.
• Take a driving course: Taking a state-approved defensive driving or driver safety course can get you a discount on your insurance.
• Make anti-theft modifications: Adding anti-theft mechanisms to your car, such as GPS trackers or etching your vehicle identification number into the windshield, can help lower your insurance costs.

Frequently asked questions