Auto collision | auto collision repair | auto collision center | Phoenix AZ

What You Need to Know About Auto Insurance in the Event of an Accident

After a collision, the cost to repair your vehicle to its pre-collision state can run so far above your budget you wonder if you’ll ever drive your car again. If you had insured your vehicle, the cost of repairing it is not an issue. Your insurance will cover the total cost of repairs.

This is one of those times you’ll say “thank goodness I have insurance”. But sometimes your insurance might want to pull a fast one on you. Before we dive into that, we’ll talk about insurance policies for those who are yet to insure their vehicles.

What’s an Auto Insurance?

Auto insurance is an agreement or contract you have with an insurance company. The agreement pays a premium so that in the case of an accident the insurance company pays for all damages as covered by your specific insurance policy.

What are Premium and Deductible?

Premium is the price/amount you pay for a certain insurance policy. The deductible is the money you pay – the money required of you to pay before the insurance company pays for the remainder of the cost of fixing your vehicle.

Types of Auto Insurance

There are many types of auto insurance coverage. Each is priced differently from the rest. The all offer some form of protection from different sorts of unexpected occurrences. For added protection, some people usually purchase multiple insurance policies. Some of these insurance coverages include:

1. Property Damage Liability

In an event where you are responsible for an accident, you are bound by law to pay for all damages incurred in the accident. This means you are responsible for repairs of not just the other cars involved but for properties like fences and streetlamps. The property damage liability covers all these expenses.

2. Bodily Injury Liability

This covers medical bills and/or funeral expenses, lost wages, pain, and suffering inflicted on others as a result of your role in the cause of an accident.

3. Collision

It covers the cost of fixing your car after a collision. If you were at fault, you will receive reimbursement after you’ve paid the deductibles. If you were not at fault, your insurance company will get the reimbursement from the other driver who’s at fault to cover the expenses of fixing your car.

4. Comprehensive

This protects you from losses resulting from theft, natural disasters, fires, contact with animals, falling objects, vandalism, and storms.

5. Uninsured and Underinsured Motorist Coverage

This covers you and every other passenger if your vehicle if you were all injured in an accident caused by a driver who wasn’t insured.

Vital Insurance Company Info that’s Hidden from You

It’s a great idea to get your vehicle insured so you and your properties are protected from losses that may occur in the future. But like all firms that exist to make profits, there are things your auto insurance company won’t like you to know.

  1. You can fight back if your insurer denies your claim. On signing your insurance policy, you entered a concrete-clad contract with your insurance company. This contract requires that the insurer acts in “good faith”. It is a show of “bad faith” when your claim and benefits are wrongfully denied. You can fight back by filing a bad-faith lawsuit so what’s rightfully yours is delivered to you.
  2. Although you’re at fault, you may have a case. There’s something called “comparative fault”. Take for instance, you were at fault at just below 50% with the other driver at fault at the greater percentage, you can recover some money.
  3. You are free to hire a lawyer after a crash. No one knows the law better than It’s advised that after placing a call to your adjuster, your next call be a lawyer so they can protect your rights in the proceedings that follow the crash. You don’t need to wait for your insurance company to advise you to hire one.
  4. You can take your car to ANY auto body repair shop. Sure enough, after a collision, your adjuster will present you with DRP list. If a repair shop you are comfortable with isn’t on that list, there’s no need to go choose from that list. No matter what the adjuster might say, you are at total liberty to repair your car at a shop you feel will provide the quality of service your car deserves. It is your right.
  5. You have the right to more money than your insurer claims. Like earlier stated, insurance companies want to make profits, by giving you less they make more. Based on the terms of your insurance policy, you are liable to more money than your insurer wants you to believe. This is where you need a lawyer. A lawyer will carefully peruse the terms of your insurance policy and make sure you get all that is due
  6. The insurance company of the other driver is not looking out for you. After an accident that involves you and another driver, you will be contacted by an adjuster sounding very friendly and accommodating. All you need to do when they call is to get their number and tell them your attorney will contact them soon. Staying on that call might cause you to say things that will be used against you.
  7. You are at liberty to contact your lawyer before you sign any document. Sometimes the insurance company may try to make you sign away your rights without your knowledge. Don’t let them. Just make sure not to sign any document without the presence of your lawyer.

It is our deepest hope that information will help you make better decisions regarding your auto insurance. You should be able to understand the entirety of your rights and avoid getting ripped off by dishonest insurance companies.

Don’t get us wrong, honest and good insurance companies are out there. But they’re not usually the popular ones. The popular ones usually have the budget for aggressive marketing that’s why you know about them. And how do they make that money? Exactly! So here’s our two cents to keep you out of the money-grabbing clutches of bad insurance companies.