Car insurance provides you with a certain level of financial protection in the event of an accident. You commit to make regular payments to an insurance company and in exchange they may pay for repairs to your vehicle or pay you the value of your car on the day of the accident. This works because the insurance company sets premiums at a level that allows them to help those in accidents and still make a profit.
Despite being a requirement for owning and driving a car, many people do not fully understand how car insurance works. As a result, some people’s car insurance coverage can be lacking.
Your Policy Affects How Your Car Insurance Works?
When you purchase car insurance, you receive a level of protection in case you get into a car accident or if your car gets stolen. This level of protection will affect part of how your car insurance works. Car insurance policies include:
- Liability coverage: The most basic car insurance policy, this will cover costs if you cause a vehicular accident, damaged property, or injured a person.
- Personal injury protection (PIP): This is a type of no-fault coverage and would cover medical and rehabilitation expenses for you or your passengers.
- Collision coverage: This policy applies to damages to your own car, regardless of who caused the accident.
- Comprehensive coverage: This kind of car insurance will cover damages sustained while you are not driving your car, such as fire, falling objects, floods, theft, and vandalism.
- Gap insurance: This kind of coverage will only pay for your car’s actual cash value in case of an extreme accident, collision, or stolen vehicle.
- Uninsured or underinsured motorist insurance: This type of policy covers costs of the accident if the other driver involved does not have insurance or is underinsured.
How to Buy Car Insurance
Always shop around and compare different insurance policies. Take a look at what different types of coverage entails for different insurance companies. Different policy providers may quote different prices for similar coverage, so make sure to carefully compare the quotations you receive.
At Ipsen Insurance, you can receive a free, non-binding insurance quotation through our website. All you need to do is fill out our online form and then wait for our response.
Here are the basic steps to buying a car insurance policy:
- Decide on the type of coverage you want or need.
- Set a range or specific amount of car insurance coverage to focus on.
- Research different car insurance providers online.
- Fill out applications for insurance quotations from different policy providers.
- Compare the policies and quotations you receive.
- Finalize your choice and purchase your policy.
When you are ready to buy car insurance, make sure you have your driver’s license and vehicle registration with you. If you have previous insurance coverage, it will help to have a current declaration page as proof of your policy.
Now that you’ve signed up for a car insurance policy the only thing you need to do is to make the payments to the insurance company. If you do find yourself in an accident, then you’ll need to file an insurance claim.
How to File a Car Accident Insurance Claim
If you find yourself in a vehicular accident, it is important that you know the proper steps for filing an insurance claim. Familiarizing yourself with these tips and steps will help you when the time comes.
It is important to contact your insurance provider soon after the accident has occurred. Many companies have a claims process that can be filled out on the insurance provider’s website. They will then reach out to you for additional information.
Important tips to keep in mind right after the accident:
- Note down important details on the accident: This should include the name of any involved parties, license plates, the damages, make and model of the vehicles, time of the accident, and any witnesses.
- Take photos and/or videos of the scene: These would support your notes and may help you when filing claims later on.
- Exchange contact information with any involved parties: Remember to also ask the name of the other driver’s car insurance provider.
- Ask for a copy of the police report: If you were required to fill one out at the scene of the accident, ask for a copy for your insurance company.
Once you are in a better state of mind, you can get a headstart on filing your claim. Many insurers now have mobile apps to facilitate smoother claims processing. If your insurer has an app, take advantage of it to process your claim faster.
Keep in touch with your insurance provider after the initial call. Remember to ask them what documents are required to support your claims.
Moreover, ensure that you supply any necessary information, forms, and documents your insurer requests.
Pertinent information you may need to submit for you claim:
- Policy number
- Time, date, and location of the accident
- A detailed account of the accident
- Contact information of any involved parties
- Police report number
- Name of the police department involved and officers who responded
Aside from asking your insurance provider about the requirements for the claims, you should also ask if there is a time limit for submitting a claim. Confirm with your provider whether your insurance policy has a critical claim deadline or not so that you don’t miss it.
if the insurance company considers your car totaled, receives the information they need, and the title for the car they’ll assess the worth of the vehicle just before the accident and will give you that amount of money. If you had a loan for the vehicle, they will put this money towards paying off the loan first. If there is money left over after the balance of the loan has been paid then what is left over will be paid to you.
If the insurance company doesn’t consider your car totaled, they will estimate the cost of the repairs to your vehicle and will likely opt to pay the lowest bid for you for the necessary repairs to the vehicle.
The Bottom Line
Your car insurance provider will request a lot of information and documents from you following the accident. However, as long as you comply with all of these, processing your claim should be completed smoothly.
Make sure to choose a reliable insurance provider. Ipsen Insurance can help you find a reliable car insurance provider and policy in the most hassle-free way possible.