4 Common Problems with Insurance Claims
If you have been involved in an accident, such as an automobile accident your next stop may be to file a claim. Buying an insurance policy does not automatically guarantee automatic compensation for your claim. Some people overestimate the simplicity of filing a claim. Depending on the details surrounding the claim, the process can be quite difficult and complex requiring time. If you have decided to file a claim of any kind, you should be aware of the potential problems that may arise. Being aware of these problems may prevent them from complicating your claim process.
1. Time is of the essence
As a policy holder, when filing a claim it is always in your best interest to file as soon as possible. The period of time between when the incident occurs and the time you contact your insurance company should be as short as possible. When time passes details become less sharp, questions become harder to answer, and ambiguity grows. It is recommended that you decide immediately after the incident occurs whether or not you want to file a claim with the insurance company.
2. Not providing required information
When investigating a claim insurance companies require detailed information. For them to come to a sound conclusion they need to know parties involved, who was behind the wheel, resulting damages, injuries sustained, relevant background information, etc. Without the necessary information it may be a hard task to come to a conclusion. For this reason, be sure to collect and document the details. You can achieve this by taking pictures, and calling the police so they can collect statements from witnesses and file a proper police report.
3. Insufficient coverage
Even if you file your claim in a timely manner and provide the necessary information, all of this becomes futile if you fail to purchase sufficient coverage. When shopping around for an insurance policy be sure to purchase one that can potentially cover all losses and liabilities. Many people make the mistake of conservatively purchasing the cheaper policy because they assume it will save them money, but in the long run it only hinders them. Springing for the policy that covers more and that is more expensive is an investment. Before purchasing a policy consider every terrible situation that could potentially transpire and prepare for each one.
4. Dishonesty when purchasing a claim
It is a common practice for policyholders to lie to insurance companies so they can receive cheaper quotes. When confirming your information most insurers won't dig too deeply into the you provided, false or not. However once you file a claim the information you provide gets a second, third, and fourth look. If there are inconsistencies with the information you provide this may make filing your claim difficult. Always provide correct information so that it does not come back to bite you.
If you have been involved in an accident and suffered injuries or damages, contact us at Colley and Colley.