Filing a car insurance claim involves filling out some paperwork and discussing your accident (or whatever incident that led to the claim) at length. It’s a hassle, but most drivers are careful to take their time with this process since they want to get the best payout possible. However, most motorists neglect a crucial step in the process of filing a claim: understanding state law. This can be crucial because state law greatly affects the way that your payout is decided and the terms of the claim’s resolution. Taking the time to understand state insurance law can give a driver a new perspective on an accident claim and can help to get the most out of a car insurance policy.
Nearly every aspect of your car insurance coverage is influenced in some way by your state insurance commission. This commission is especially involved with the terms of a claim payout. They decide how long an insurance company has to make a decision on each claim, what payouts are legal and illegal, what information you must submit to the insurer, and much more. They also set the minimum amounts for car insurance coverage and investigate insurance companies that might be violating the law.
The law itself varies greatly from state to state, but generally speaking, insurance law is set up to protect the consumer. Understanding the law can help you understand your rights as a driver, and staying informed also allows you to know when your car insurance company is acting illegally (i.e. if they are taking too long to decide a payout). The best way to find out how your car insurance claim will be affected by your state’s car insurance law is to visit the state insurance commission’s website and do a bit of research. In particular, read about how the claim needs to be processed to be considered legal, and what claims an insurance company can legally deny. If your insurer is in violation of any of the laws that you read about, you can usually write a complaint about the company directly from the insurance commission’s website (or simply by calling them). Reporting a car insurer to the insurance commission is a last resort, but it is sometimes necessary if communication has stalled, and your insurer is acting unlawfully.
Nobody enjoys making a car insurance claim, but when you file a claim without all the facts, you are putting yourself and your vehicle at risk. By knowing how your own state’s car insurance laws affect your claim, you greatly improve your chances of a fair and legal car insurance payout.
