How Auto Insurance Works |
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Reil Miller
23 July 2012
There are different types of insurance that an individual must pay close attention to. Getting the right type of insurance is essential since it can offer protection against dangerous and financially compromising events. One type of insurance that an individual must consider is the auto insurance. Auto insurance is essential for anyone who owns a car.
Auto insurance is protection against any possible catastrophe or accident. If an accident does occur, auto insurance coverage is capable of paying for the damages and injuries that the driver and his/her passenger had incurred. This type of insurance is also mandated by the state laws. All drivers are mandated to purchase car insurance since accidents or other catastrophes can happen without any warning. This can serve as protection for both victim and the liable driver. Auto insurance is most useful when a person gets into an auto accident. For this reason, it is vital for the policy holder to understand how insurance applies to an actual accident. The insurance can help restore the individual back to a pre-accident state after an accident through the claims process. The claims process begins by contacting the car insurance company. A representative collects all the necessary data regarding the accident and a claim number will be assigned to the policy holder. This claim will serve as a record of the actual accident which is then linked to a specific auto insurance policy.
The insurance claim will then be assigned to a claims adjuster who will verify the details of the accident, review the insurance policy coverage, and review the determination of fault and pay out. The claims adjuster may also conduct an interview through phone or face-to-face, and gather police reports, and scene investigation and policy reviews. Once all of these are done, a payout will be given based on the insurance policy limits, damages, and deductibles.
An insurance policy is a contract between the insurance company and the policy holder. The policy holder will need to pay a certain premium every month, and in return, the insurance company will pay for the injuries and damages based on the coverage listed in the insurance policy. There are various types of coverage and whether a car accident will be covered will really depend on the coverage listed in the policy chosen by the policy holder. However, if the driver did not include such coverage in their policy, the insurance company will not be able to pay for the auto accident.