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How Does Car Insurance Work in an Accident?
Car insurance is the one aspect of an auto accident that consumers generally don't understand. From deductibles to the written contract, consumers normally get confused on how car insurance applies to an actual wreck. As a result, several myths exist about it.

However, experts in the industry understand that how car insurance works after an auto accident is to restore an individual back to pre-accident state.

Car insurance restores an individual back to a pre-accident state after an auto accident through the claims process. It usually begins with a call to the car insurance company. After a car insurance representative collects the initial data about an auto accident, a claim number is assigned and a claim set up. This claim is a record of the actual auto accident that is linked to a specific auto policy. From here, the claim is assigned to a claims adjuster who will process the claim through a series of tasks.

The claims adjuster will verify accident details, review coverage, review determination of fault and pay out. Claims adjusters complete these tasks through phone or face-to-face interviews, police reports, scene investigations and policy reviews. After these tasks are complete, if a claims adjuster deems that coverage exists and a claim payment is in order, he will pay out based on policy limits, deductibles and damages.

Payment from a car insurance company is not for gain. As a result, if the rear bumper of a car is damaged in an auto accident, the car insurance company will only pay for the rear bumper. And, this payment is based on a professional appraisal and less any deductible that applies. For example, if the approved repairs cost $600.00 and the deductible is $200.00, the car insurance will issue a check for $400.00 to the customer or body shop. After the payment is issued, the claim is closed. When a car insurance company closes a claim, it still stays in their records, but all activity stops on it.

Car insurance is a way to prevent financial loss to the general public because of a car wreck. It's like having extra money in the bank that can be withdrawn in the case of an emergency. This is the key to its success. Regardless of consumer complaints, enough claims are paid by car insurance companies on a yearly basis in order to make it state mandated and appreciated by the people who use it after an auto accident.

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By Stephanie Modkins eHow Article: How Does Car Insurance Work in an Accident?

Wednesday, May 23, 2012

Cheap Car Insurance Online Tips And News

Learn The Basics, What Is Automobile Insurance?


You may still be wondering what automobile insurance protection is, and in response, here is an answer to your query. Vehicle insurance protection or automobile insurance protection safeguards you from certain unfortunate incidents that involve your automobile.

It is generally a deal you make with protection plan provider wherein you pay for a premium and in return, when a car incident happen the plan provider will pay for the loss you acquired as long as it is covered in the plan protection you have bought. What are the automobile insurance protection terms you need to understand? One should understand the words ‘deductible’ and ‘premium’ when buying low cost auto insurance protection. The latter is the quantity you pay for a certain automobile insurance protection coverage while the former is the quantity that you are going to pay for loss suffered due to a car incident. As an example, the plan you bought has a $100 insurance deductible and the loss in the incident amounts to $500, then, you are going to pay only for the $100 of total $500 loss. Most automobile insurance protection includes expenses of maintenance, health protection to harmed people brought on by the incident, and the legal policies. A plan also exist that will cover cost when your automobile is vandalized or thieved. What are the types of automobile insurance protection coverage? Vehicle plans include different kinds of protection and of different prices. Your insurance protection coverage may cover the following.

1) Property Damage Responsibility. When you triggered a car incident, this protection will pay for the maintenance to the loss suffered by your car the other party as well. This protection will also apply to the repair expenses of any other property hit by your automobile in the course of the incident such as street lamps, buildings, etc.

2) Bodily Injury Responsibility. This insurance protection coverage will pay for the healthcare expenses, lost wages, suffering, and funeral expenses for people who have been harmed in the incident you are legally responsible for. Aside from those, this protection also includes legal expenses in defending you from lawsuit registered due to the incident.

3) Accident. This pays for the loss suffered to your automobile as it collides with another automobile whether you are at fault or not. This will reimburse you of the cost in fixing your automobile after you have paid for the insurance deductible quantity. Most bank-financed vehicles are required to have this kind of protection though this is optionally available in most states in US.

4) Comprehensive. This kind of protection will pay for the loss not brought on by a vehicle-collision incident such as vandalism, falling objects, fires, storms, earthquakes, animal-caused accidents, and in the event that your automobile will be thieved. This protection however is optionally available.

5) Uninsured/Underinsured Driver Coverage. This insurance protection coverage includes you and the passengers in your automobile when the incident is brought on by an without insurance motorist who has been held accountable for the injuries suffered. It includes hospital bills and other related expenses permitted by a particular protection. What is the purpose of automobile insurance? A renters insurance protection plan exist to protect yourself and your automobile, and to free you from possible financial trouble. It is better to be prepared to respond to any untoward incident pertaining to your automobile. It is better that your automobile is properly insured for accidents can happen to anyone.

Want more? See my other write-ups:

Florida Reforms Insurance Law - Florida governor had recently signed a new bill reforming the state insurance protection system that overhauls how they compensate insurance protection companies and beneficiaries on crash-related injuries.
Progressive Insurance File Legal cases On insurance protection Patents - Modern registered lawsuits against The Hartford and State Farm for alleged infringement on the three patents used in measuring automobile usage through Progressive's Snapshot program.


Tag:cheap car insurance online tips and news, car insurance

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