As a car insurance adjuster it is my job to investigate claims and determine how much the insurance company should pay. I work for the insurance company not the policyholder. I do not have to worry about whether or not the policyholder can afford to pay their deductible. My job is to save the insurance company money.
There are a few things that I look for when I investigate a claim. The first thing is to see if the damage is covered by the policy. If it is not covered then there is no need to investigate further. The second thing I look for is to see if the damage is extensive enough to warrant a total loss. If the damage is not extensive then I will look into repairing the vehicle.
If the policy covers the damage and the damage is extensive then I will work with the policyholder to determine the best course of action. This may involve repairing the vehicle or it may involve totaling the vehicle and paying the policyholder the market value of the vehicle. I will also look at the age of the vehicle and the mileage to determine if it is worth repairing.
In some cases it is cheaper for the insurance company to pay for a rental car while the policyholder’s vehicle is being repaired. I will also look at the policyholder’s driving record to see if there have been any accidents or violations in the past. This information will help me determine if the policyholder is a high-risk driver.
I will also look at the insurance company’s claims history to see if there have been any previous claims on the policy. This information will help me determine if the policy is a high-risk policy. I will also look at the policyholder’s credit score to see if there is any risk of non-payment.
I will also look at the policyholder’s assets to see if they have the ability to pay the deductible. If the policyholder does not have the assets to pay the deductible then I will not recommend repairing the vehicle. I will also look at the policyholder’s employment history to see if they are likely to lose their job. This information will help me determine if the policyholder is a high-risk driver.
How much insurance coverage is required by law?
Every state has different requirements but most states require at least liability insurance.
What does liability insurance cover?
This type of insurance covers damage to property or people that you are held responsible for.
Will my rates go up if I use my insurance to cover a claim?
It depends on your insurance company and your state but in most cases yes your rates will increase.
How much will my rates go up?
Again it depends on your insurance company and your state but you can expect your rates to increase by at least 20-30%.
How can I avoid having my rates go up?
One way is to purchase insurance that does not factor in claims when calculating rates (this is called “claims-made” insurance).
Another way is to stay with the same insurance company for a number of years (most companies offer loyalty discounts).
Will my rates go up if I am not at fault in an accident?
No your rates will not increase if you are not at fault in an accident.
How much will my rates go up if I am at fault in an accident?
Once again it depends on your insurance company and your state but you can expect your rates to increase by at least 20-30%.
What is the difference between comprehensive and collision coverage?
Collision coverage covers damage to your car that is caused by an accident while comprehensive coverage covers damage to your car that is caused by factors other than an accident (such as theft weather or vandalism).
Do I need comprehensive and collision coverage?
If your car is financed or leased then you are required to have both comprehensive and collision coverage.
If your car is paid off then you are only required to have liability insurance but you may choose to purchase comprehensive and collision coverage if you wish.
What is the difference between actual cash value and replacement cost coverage?
Replacement cost coverage will reimburse you for the cost of repairing or replacing your car up to the full value of your car while actual cash value coverage will only reimburse you for the depreciated value of your car.
Do I need actual cash value or replacement cost coverage?
Replacement cost coverage is generally a better option but it is also more expensive.
If you have a car that is not worth very much then actual cash value coverage may be a better option for you.
What is a deductible?
A deductible is the amount of money that you are responsible for paying in the event of a claim.
How does a deductible work?
Let’s say you have a $500 deductible and you are in an accident that causes $1000 worth of damage to your car.
You will be responsible for paying the first $500 of the repairs and your insurance company will pay the remaining $500.
How do I choose a deductible?
You should choose a deductible that you are comfortable with and that you can afford to pay out-of-pocket in the event of a claim.
What is gap insurance?
Gap insurance is insurance that covers the difference between the amount you owe on your car loan and the actual cash value of your car.