Auto Claims Handling

When the ultimate incident occurs and there is an automobile accident it will probably result in a claim being reported to your insurance carrier. This is when the final test is given as to whether you have the correct coverage, limits and deductible in your automobile insurance policy. This is often when people find that the coverage they thought they had is not included and the limits they have are not adequate.

When the damages occur to your vehicle, or injuries occur to you or your family, there is a great deal of stress and strain in trying to get through the ordeal and get back to normal. The Claims adjuster is your contact and if the adjuster is abrupt or hurried, it creates a feeling of mistrust and confusion in your mind.

The Claims adjuster's job is to handle your claim according to the coverage provided in your policy. He/she also will deal with claimants who have been injured or damaged by insureds and are seeking reimbursement for their damages. As a result the claim adjuster has a difficult task in dealing with individuals who are injured or have sustained losses and want answers as quickly as possible.

When a claim is filed with the insurance company for damages as a result of an automobile accident, the claims are first investigated to be certain coverages are afforded under the insurance policy for the claim. Once the insurance adjuster determines that the claim is covered, the steps for paying for the claim are started. After determining the amount of damages and losses, the adjuster authorizes payment for the claim.

The first step in handling the claim is reporting it to your insurance agent or carrier. They will work with you to identify the information needed during the claim process, but it is helpful if you can answer these questions:

• When the accident occurred (date, time)
• Where the accident occurred (be as specific as possible)
• How the accident happened
• What kind of vehicle or vehicles were involved (including the year, make and model)
• A description of each vehicle's damage
• The names and contact information of those involved in the accident
• The names and contact information of anyone who witnessed the accident
• If the police were contacted

• 1. The loss report is assigned a claim number and assigned to a claims handler.
  
  • A simple auto insurance loss, such as having your vehicle towed or windshield damage, is assigned to a claims facilitator or inside claims representative. Communication with the claims handler is handled by phone or by mail and can usually be settled quickly.
  • A complex auto insurance loss, involving other parties, injuries or more severe property damage, is assigned to a liability adjuster who checks for auto insurance coverage and may assign the automobile damages to a material damage adjuster. A medical management specialist may also work on your claim if the accident involved injuries to covered parties.
• 2. After the claim is initiated, the adjuster or claims handler will check on the progress of claim and make every effort to efficiently complete the process. Some claims can be settled quickly. Others – especially those involving litigation – may take longer.

• Policyholder’s name as it appears on the policy
• Policy number
• Claim number
• Claim handler or adjuster’s name, mailing address, phone number and title
• Estimates, correspondence and notes of phone conversations regarding the claims settlement

When I received my claim check, it was made payable to me and the bank. Why?
When there is a lien on the vehicle, the leinholder is also named on the claim check to protect the lienholder from the insured taking the funds in the claim check and not repairing the vehicle. The lienholder is named on your automobile policy and the claim check, because they have a financial interest in your vehicle. Insurance is designed to protect anyone who has a financial interest in property in the event that property is damaged. Should the property is damaged, the individuals who have a financial interest in the damaged property would want to be sure that it is repaired so that it retains it's value.


When my car was hit by a man who did not have any insurance, why did I have to pay a deductible?
Because the man who caused the damages to your vehicle may not have Liability insurance, the vehicle was probably repaired under your Collision coverage that has a deductible. If your Uninsured Motorist Coverage has Property Damage included, the insurance company may have paid the claim under that coverage, however, it normally has a deductible also.


Why did my insurance company settle my claim on the damages to my vehicle as a total loss? The damages were only just over $ 2,000 and the car was in excellent condition prior to the accident. I wanted to keep the vehicle and do the repairs myself.
When insurance companies determine that the damage to property is higher than the book value of the property, they normally will settle on the amount of damages as a total loss and pay only the book value. Declaring the vehicle a total loss is less costly for the insurance company. When a vehicle has damages that exceed that book value amount, often the vehicle repairs would be much higher than the book value amount. If the damages to your vehicle were more than $ 2,000 and they paid you $ 2,000 the repairs would have been much more and you probably would not have to able to repair the vehicle for that amount.

Often vehicles that are damaged severely more than the book value, are declared unsafe to repair. These damages are often bent axles, drive shafts, etc, which may make the vehicle unsafe for the roads. Repairing these vehicles and putting them back on the road, often cause them to have other accidents or other operating problems. Have you ever seen a vehicle going down the road that looks like it isn't straight? Well if so, it probably had been in a severe accident that caused major structural damage to it.


My car was only 6 months old when it was struck by another vehicle and my insurance company said it was a total loss. The claim check wasn't enough to pay off the vehicle loan and now I have to purchase another car and still owe on a vehicle I don't own. Why wasn't the claim check enough to at least cover the outstanding loan on the vehicle?
Often the claims for automobile insurance are paid on the basis of Actual Cash Value. This is the replacement cost of the damages less any depreciation that may have occurred since the property was first acquired. The usually results in a smaller claim check than one calculated on a Replacement Cost Basis. Since Automobiles depreciate once they are driven off of the new automobile showroom. This can result in an individual not receiving enough funds to pay off a loan on a vehicle, if the vehicle is determined to be a total loss.


Why do I have to have the repairs to my vehicle done at a repair shop that the insurance carrier has selected? I want to have the vehicle repaired at my automobile shop where I know the people who will be working on my car.
The Insurance carrier may have agreements with repair shops for several reasons. The repair shops usually have good reputations for doing dependable and good repairs. They also agree to repair the vehicles with parts that are designed for your vehicle and obtain the parts at reasonable prices. This keeps the total repair bills lower.

Using a repair shop that has an agreement with your insurance company also gives you the availability of being sure that the repairs are done properly. If they are not, you can go to the insurance company and they will authorize additional payments to have the additional repairs done if needed.

If you have other questions about Automobile Claims handling, we will be happy to answer them. Drop us an email or call and we will be pleased to provide you service.