Now that you’ve chosen and purchased your auto insurance policy, you may be wondering how to use it. Hopefully, you will never need to use it, but considering the number of cell-phone-using, make-up-applying, texting, children-managing and new drivers there are on the road these days, chances are, you’ll be using it. Until then, be grateful you’re covered and continue paying for your policy.
Using your auto insurance is really only necessary when damage has been done to your vehicle. This can happen while your vehicle is moving or stationary and usually involves another moving or stationary vehicle or object. After the collision occurs and injuries are assessed and cared for, a traffic officer will request a few items. Along with your driver’s license and registration, you will need to provide your proof of auto insurance. Usually this is a card that is sent to you by your auto insurance company, stating that they agree to insure you for a marked period of time. In many states, failure to provide proof of insurance results in expensive consequences. To be safe, always carry this card in your glove compartment or other safe place within your vehicle.
Following the accident, it may be a good time to get any witness statements and their names and phone numbers for future reference for your auto insurance company and the police report. If you have any passengers that are physically able to gather this information for you, consider having them do so while you fill out the police report. It is also wise to call your auto insurance company and let them know all the information as well: the other driver’s name, license number, and their auto insurance company name, policy number, and the name of the policyholder. Your insurance company may request additional information and should provide friendly help to you during this stressful moment. With all that is going on, you may find it helpful to ask your auto insurance representative to remind you of the details of your policy and your options. Within a few days, both your insurer and the other driver’s insurer will receive a copy of the police report and fault will be decided.
Each auto insurance company may require you to do different things during the process of repairing your vehicle. If you are not at-fault for the accident, the other driver’s auto insurance should be financially responsible for your vehicle’s repairs. This can sometimes be frustrating as you are now at their mercy as far as timing goes and you may need to speak with them regularly to make sure your repairs are paid for. They may send you a check after an estimate is completed by one of their agents, or they may deal directly with one of their approved body shops.
If you are at-fault and are found financially responsible for the accident, the other driver involved was at-fault and not insured, or you were the only driver involved in the accident (collision with a pole or building), you will be required to “use” your auto insurance. Once your representative gets the initial information regarding the accident, there’s a possibility they will wait to receive the police report before instructing you on where to take your vehicle for repair. Be patient with their requests as they are doing things according to the company’s protocol.
Depending on your auto insurance company, it may be days or weeks before you can have your car repaired. After paying your deductible, either you’ll be told where to take your car or you’ll be permitted to choose your body shop. Some insurance companies will pay for a rental car if you need one during the time it takes to repair your vehicle, but often it’s only percentage of the total cost or an “up-to” amount.
As frustrating as these times can be, it’s a good idea to remember the importance of carrying auto insurance. You still may be required to pay for expenses (i.e. your deductible), but it will be comparably less than the cost of paying for the expenses without insurance.
If you have not experienced this before, place yourself in this situation and ask some questions: Would I be covered if an uninsured motorist damaged my vehicle? What would I be financially responsible for if I hit another person’s vehicle or a pedestrian? How would my medical bills get paid if I were injured in an accident that was my fault? How would they get paid if the accident were the other driver’s fault? What if I had to take a few weeks off from work or take a leave of absence? How would my bills get paid? If someone was killed due to an accident I caused, what would be covered and what would I have to pay for? These are the kinds of questions you want to ask and know the answers to before any accident occurs. If you discover any of your questions are not covered in your policy, it’s time to call your insurer and find out your options.
There are coverages offered to you to carry on your policy that are sometimes not required by the state but could help lower your final repair cost if in an accident. Comprehension and collision will protect you from theft or damage done to your car, in most cases when it was your fault. If you do not have health insurance, medical payment coverage can pay for any medical injuries as a result of an automobile accident. No-fault insurance (not available in all states) is a coverage that will cover accident-related expenses despite who was at-fault in an accident. Personal injury protection will also cover accident-related expense and is available in all states and required by some.
Everyone needs some form of insurance against damage done to their own vehicle or from damaging another person’s property/vehicle in order to be permitted to drive. Unfortunately it’s very unrealistic to think that you’ll never need auto insurance, and when you do need it, you’ll be comforted to know that everything is already in place for your benefit.
