Understanding Your Auto Claim, Exercises of Law

Download Understanding Your Auto Claim and more Exercises Law in PDF only on Docsity! Understanding your auto claim Filing a claim Immediately notify the police of an accident that damaged other’s property or if you were the victim of a hit- and-run accident, uninsured motorist, vandalism or theft. Report your accident or the circumstances that will cause you to fi le a claim with your insurance company or agent/producer. If you were not at fault, report the accident to the other driver’s insurance company. Follow the company’s instructions when making your claim. According to Missouri statute section 375.1007(4) RSMo and Missouri regulation 20 CSR 100-1.050, insurance companies are required to handle claims promptly and fairly. If you are in an accident with an uninsured motorist, notify your own carrier, and a report should be made to the Missouri Department of Revenue if: · The accident happened in Missouri · One year has not passed since the accident happened · Someone involved in the accident did not have liability insurance coverage AND · There is damage to any one or more person’s property in excess of $500; or there was personal inury or death You may obtain a state “Uninsured Accident Report” form from any branch of the Missouri Department of Revenue or State Highway Patrol. Missouri Department of Revenue 301 W. High St., Room 470 Jefferson City, MO 65101 (573) 751-7195 You can contact the State Highway Patrol General Headquarters by calling (573) 751-3313. Understanding your claim What is physical damage? Physical damage insurance typically is the comprehensive and collision coverage on your vehicle. Comprehensive insurance pays for damages to your car from perils such as fi re, theft, explosion, windstorm, hail, vandalism, glass breakage, birds, and animals. Covered perils are listed in your policy under the insuring agreements section. This coverage may have no deductible, a $100 deductible, a $250 deductible, or more. The deductible is the amount of any loss you must pay before the insurance company will cover damages. Collision insurance covers damage caused by the collision of your car, regardless of who is responsible for the accident. This type of insurance usually includes a deductible. Again, you pay the deductible amount when you have an accident, and the insurance company pays the rest, up to the limits of your policy. such as public transportation, getting rides from friends or family, etc. What is comparative fault? In 1983, the Missouri Supreme Court adopted the rules of pure comparative fault. This means that any parties involved in an accident may be partially responsible for the accident, and allows your damages to be reduced by the percentage you are at fault in the accident. Insurers are allowed to investigate an accident and make a decision as to the percentage of fault of all parties involved. They will make voluntary offers based on this opinion. What about salvage? Missouri statutes defi ne “salvage vehicle” as any motor vehicle or semitrailer, which has been damaged to the extent that the total cost of repairs to rebuild the vehicle to its condition immediately before it was damaged exceeds 80% of the fair market value of the vehicle prior to the damage. (Fair market value is described on page 5 under Actual Cash Value) The total cost of repairs to rebuild or reconstruct the vehicle shall not include the cost of repairing, replacing, or reinstalling infl atable safety restraints, tires, sound systems or any sales tax for parts or materials to rebuild the vehicle. What is fi rst-party liability? A fi rst-party liability claim is when you make a claim against your own insurance policy. The claim payment is based on contractual agreements or provisions in your policy. What is third-party liability? A third-party liability claim is when you make a claim against someone else’s policy. Typical policy language states that the insurer will pay for damages for which the insured becomes legally liable. Some damages may include loss of use if the vehicle requires repair. Insurers will pay reasonable costs for vehicle rental, bus fares, etc., to the third-party claimants. The company will usually terminate these payments when a reasonable settlement offer is extended to the claimant. What are bodily injury considerations? Once a company has determined responsibility in an accident, they will gather information in order to extend a fair settlement offer. Companies will take several factors into consideration when offering the settlement. They will review all reasonable medical expenses, lost wages, degree of injury and long-term effects. At this time there is no law to force companies to include pain and suffering in the settlement offer. Although the Missouri Department of Insurance cannot force a company to pay a bodily injury claim, the department has the authority to ensure the company performs a thorough investigation. Depending on the circumstances involved in the accident, it may take a while for the insurance companies to determine liability and settle the claims. If you seek medical attention, Missouri law allows you to fi le accident- related medical claims under your health insurance coverage for benefi ts applicable to your policy. Once the automobile insurer determines liability, the bodily injury payment is paid in addition to any benefi t received. The bodily injury settlement is based on reasonable medical expenses and is separate from health insurance payments. Missouri law does not allow automobile insurance companies to subrogate (recoup their payment) from your health carrier and vice versa. Only self-funded health benefi t plans are allowed to subrogate in Missouri. The medical payments portion of some auto policies also provides immediate coverage for health services due to an auto accident rendered regardless of who is at fault. You should review the medical payments portion of your policy for coverage that may extend to the medical treatment. How to contact the Missouri Department of Insurance, Financial Institutions & Professional Registration For additional information contact the Consumer Insurance Hotline toll free at 1-800-726-7390 or go to http://www.insurance.mo.gov.