Car insurance is a signed contract between you and a particular insurance company that protects you against financial loss in the event of a car accident or theft. In exchange for your paying a premium, the insurance company agrees to pay your losses as outlined in your policy.
Car insurance covers the following: PROPERTY DAMAGE (The insurance policy can cover the damage to your car, another driver’s car, or damage caused to others’ property such as a fence, building or utility pole). BODILY INJURY (This covers the liability associated with injuries or death that you or another driver causes while driving).
However, car insurance does not cover the following: NATURAL DISASTER (If any damage occurs to your car as a result of an earthquake, floods, hurricane, or any other natural disaster, auto insurance does not cover it. These natural events are regarded as “acts of God” and excluded from the insurance policy).
THEFT OF PERSONAL BELONGINGS (If your car was broken into and vandalized, the car insurance policy covers those damages. However, if any of your valuables were stolen in the process, they will not be paid for).
CARELESSNESS (Your claim might be rejected by the insurance company if the loss to your car was due to carelessness on your part. Perhaps you left your key in the car or did not securely lock your vehicle. Hence, ensure you always have environmental awareness and practice safety caution).
SOMEONE ELSE’S CAR (If you are driving someone else’s car and have an accident, you cannot make a claim for that. The insurer will only pay for claims that are made for the car registered under the policy holder’s name).
Below are some of the tricks used by car insurance companies to fool people.
- Low settlement offers: The most widely noted deceitful practice that car insurance companies use is throwing out a lowball settlement offer shortly after the accident. They intend to get you to accept the low offer before you realize that you were actually entitled to a lot more compensation from the accident. If you accidentally accept an initial lowball offer, the case is considered settled, and you won’t receive any more compensation.
- Recorded statement: Shortly after a car accident, the other insurance company will likely call you to get a recorded statement. Their intention, in this particular situation, is to get you to admit some form of guilt. This way, they can place more blame on you and reduce your compensation amount.
- Delayed settlement: It’s a common practice of car insurance companies to drag out the settlement process. Their intent is that you’ll get overly frustrated and make the decision to settle for less than you are actually entitled to. It’s important to know that this is a common practice so that you don’t start questioning the validity of your claim.
- Old injury claims: If you’re injured due to a car accident, then the other party’s insurance company knows that your medical bills can get expensive. They will try to get out of paying your medical bills by stating that your injury was pre-existing. While this isn’t feasible in some types of injuries, like a broken arm, it can get blurry with other injuries, like back pain.
- Not getting a lawyer deceit: All too often, insurance adjusters for the other party’s insurance company try to talk victims out of contacting a lawyer. They claim that hiring a lawyer is extremely expensive, and you’ll get more money if you keep a lawyer out of it. They also claim that lawyers can bog down the speed of the settlement process, making it take much longer to get your settlement funds. The truth is that the insurance adjuster is simply trying to ensure the best outcome of the insurance company. Without the knowledge and experience of an auto accident lawyer, it’s common for victims to accept lowball settlement offers.
- The false deadline gameplay: Car insurance companies know that putting undue pressure on victims usually causes them to make bad decisions regarding their case. Apart from throwing out lowball settlement offers, the insurance company may give you false deadlines that you have to accept or deny a settlement offer.