Auto Insurance

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Actions to take before and after a car accident:
An automobile accident, like other unexpected events, can cause a great deal of stress and frustration. You can ease that stress by taking steps to make sure you receive fair compensation for your financial and material losses. The following tips can help you before and after an accident, and during the repair and claims processes.
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BEFORE AN ACCIDENT BE PREPARED

 
  • Understand your insurance coverage. Know the names, phone numbers and mailing addresses of your insurance company and agent.
  • Always carry your insurance card - the wallet-sized card issued by your insurance company with your policy number and coverage - with you, and make a copy to keep in your car, along with your automobile registration.
  • Select a reputable repair shop with whom you have a good working relationship. This will increase your likelihood of receiving quality, comparable parts to replace those damaged in an accident.
 

AFTER AN ACCIDENT THE CLAIMS PROCESS
When filing a claim on your automobile insurance, you should take the following steps:
 
  • Always report an accident to the police, regardless of how minor it seems. What looks like a small dent or scratch could actually cost several hundred dollars to repair. Make sure the police officer gives you a copy of the driver Exchange of Information Form.
  • Write down names, addresses and phone numbers of any witnesses in case you need to contact them later.
  • Call your insurance company and agent immediately for further instructions. The insurer may deny payment of your claim if you do not report the accident.
An insurance company is responsible for the proper, timely and reasonable investigation of claims. The insurer must let you know in writing if it will deny and/or investigate your claim within 30 days after receiving completed proof-of-loss forms. The company must also provide you with a reasonable explanation for denying your claim. In settling your claim, the company may offer you a compromise settlement.

The insurance company may void your policy from its effective date and refuse to pay a claim if you withheld information on your application that would have caused a coverage denial or change in the premium charged. The company must pay you within 20 days once you agree in writing on an amount for repair or replacement of your auto and a settlement agreement is signed. If not, you will collect 12 percent interest per year on the amount of the claim from the date of the agreement.

An insurance company may settle any property damage claim you are responsible for, based on comparative negligence (the percentage of fault shared by each driver who contributed to an accident) if both drivers share fault. For example, the other driver may have ignored a stop sign, but you exceeded the speed limit and could not stop in time to avoid the accident. Since both parties contributed to the accident, your insurance companies will pay the claim according to the percentage of fault for each driver.

 

SETTLING YOUR CLAIM
Before you start repairs, make sure the insurance company confirms coverage. You should receive a prompt and fair settlement on your claim. For a totaled car, your insurance company may offer you a cash settlement based on the actual cost to purchase a comparable automobile - one made by the same manufacturer, in the same model year, of a similar body type and with similar options and mileage - or the company may elect to offer you a replacement vehicle.

The insurance company must have documentation in its file to justify a decision. In some cases, your insurance company will send an adjuster to inspect your automobile before you obtain any necessary repairs. In other cases, your insurer will instruct you to obtain an estimate for the work. Find out from your company what to do about supplemental damage in case the repair shop finds something caused by the accident that is not listed on the original estimate.

When settling your claim, your insurance company may deduct from your automobile's original value for damage, such as a dent from a previous accident. However, your insurer must fully support this adjusted value by documentation explained to you in identifiable, measurable and itemized terms. Such documentation must also specify appropriate dollar amounts.

The insurer must take all reasonable steps to verify that the value you receive for your automobile accurately represents comparable automobiles in the local market. Your insurance company cannot require you to travel an unreasonable distance to inspect a replacement automobile, to obtain a repair estimate, or to have your automobile repaired at a specific shop. If you file a claim for a vehicle that was totaled in an accident, you might not receive enough money to replace your car or even completely pay off your auto loan. You may owe more than the car is worth.

Your insurance company must provide you with a notice of your rights when you file a PIP claim. This notice will include items such as a list of your PIP benefits, exclusions and limitations, and payment deadlines. Your insurance company must pay you or the service provider within 30 days upon receipt of proper written notification of the PIP loss amount. If not, you or your provider will collect interest on the amount of your loss until you receive payment.

The insurer of the at-fault driver may offer you a settlement after you suffer an injury in an accident. However, you should realize this offer may not fully pay your claim.

 

DURING THE REPAIR PROCESS
You have the right, based upon your contract, to select the repair shop to repair your automobile after an accident. If you choose to use a repair shop recommended by the insurance company, the insurance company usually will stand by the completed repairs. The insurance company must provide you with a copy of the repair shop estimate used to determine the settlement amount. You may find that the written estimate provided by the insurance company does not meet the written cost estimate provided to you by the repair shop. If so, your insurance company has three options:
 
  • Pay the difference
  • Negotiate an agreed upon amount with the repair shop or
  • Refer you to a reputable repair shop that will repair the damages for the written estimate provided by the insurance company.
If you must keep your car in storage until repairs are made, the insurance company must provide you reasonable notice before terminating payment of storage charges. When towing is provided by the policy, the insurance company must cover the towing cost of the company you selected, subject to policy limitations, unless they provided you with the name of another towing company before you chose one.

If you must keep your car in storage until repairs are made, the insurance company must provide you reasonable notice before terminating payment of storage charges. When towing is provided by the policy, the insurance company must cover the towing cost of the company you selected, subject to policy limitations, unless they provided you with the name of another towing company before you chose one.

The insurance company must repair your automobile with parts at least equal in kind and quality to the original parts. For example, today's vehicles have structural members made of high-strength, low-alloy steel. An accident may damage these structural members beyond a certain predetermined amount. If so, the repair work has to restore the structural integrity designed for the safety of the driver and passengers.

IS YOUR CAR READY?
Check ALL repairs afterwards, both at the shop and again at home. Also, get a copy of the itemized repairs on a form printed with the repair shop's name and address. If you have a problem with a body shop, you may request assistance from the Florida Department of Agriculture and Consumer Services at 1-800-435-7352.