These following points in this blog are more focused on common mistakes that people do everyday which can result in compromising the value of your claim.
Photos- When communicating to an adjuster about the force of impact your vehicle received, words can only get you so far. Sometimes, it will not be enough.
If it is safe to do so, take photos of the accident scene and of the damage to the vehicles involved. Remember, daylight also helps with taking good photos.
Accident scene photos need to be taken as quickly to the time of impact as practically possible.
You want to take these photos from enough distance so that both vehicles are in the center of your frames. Try to include within your photos images which can be used as reference points. Also, the position which the photos are taken from can be an tremendous help. Take your photos at a distance with the front, back, sides of the accident scene in the middle of your frames.
Then, takes photos at the same distance as before but at all 45 degree angles so when you are done taking all your photos, you are able to perfectly show your adjuster how the vehicles were positioned at the accident scene. These photos can go a long way to convince your adjuster where the blame really is.
You have no idea how powerful your argument will be when the other driver has no photos of the accident scene to provide. Also, you photos could turn out to be evidence. They make great leverage!
Medical- when it comes to this valuable subject, timing is everything!
You feel your body one way before an accident and sometimes a little difference, some difference and in some cases really different after an accident. The most important thing I can tell you about this issue is be honest. If you feel sore, feel pain, stiffness, get it medically documented, see a Doctor ASAP! Beware most adjusters are good enough at reading medical and can tell when someone is making more out of something than it should be resulting in you losing credibility with your adjuster.
Telling things to an adjuster means very little but documentation, is king!
If you treat for injuries from your accident, treat with a reputable Doctor. Some Doctors give you muscle relaxers and pain pills. Some do the same but send you for physical therapy.
If you're dealing with what are called soft tissue injuries, sprains and strains there really isn't that much that can be done.
While Chiropractic involvement is common, a savvy adjuster knows where to draw the line on how much of this treatment they will pay for. Remember, the at fault insurance company in Texas is only obligated to consider reasonable and necessary medical. No claimant has the right to run up an unreasonable amount of medical and the insurance company is required to simply "pay it". I can assure you that is not the case.
This is another important issue- Do not bring up things like, since the accident you are now fearful of driving or some type of physiological effect from an auto accident. I can tell you, one-I never believed such and two-auto insurance policies in Texas do not pay for such "traumas" so in all honesty, do not bring it up. It is my opinion that most people bringing this up are just trying to inflate the value of their claim; it won't.
It makes you look like a money motivated claimant which is NOT the way you want your adjuster to view you as.
I hope you use this information when it comes time to.
Lastly, I have had many people try to settle their own claims which they have the right to. However, I have them outgunned and in the end they walk away with little money. The lesson, if you have an injury claim that happened here in Texas, let our company provide you with all the assistance you will need to go up against the insurance company and WIN!
Next week, we will talk about diminished value claim for the damage done to your vehicle. You will see how much money the insurance companies are not paying out on something simply because you are not asking.
Monday, September 3, 2012
Tuesday, May 15, 2012
What to do when you are in an auto accident
While I hope nobody reading our blog is ever involved in an auto accident, the chances are likely that one day you will be. It is my most sincere wish that if you are in an accident in the future, let the fault be with the other driver. From our last blog there was a list of items you were to gather and have in your vehicles, yes you need this set in every car. These items will come in handy when that terrible day arrives.
The most import thing to be done after an accident is to determine if you or any passengers in your vehicle are injured. If you are feeling pain, dizziness, light headed, confusion, or anything different, you were likely injured so CALL THE POLICE and report your accident. Make sure to tell the dispatchers that injuries are involved and the police WILL go to your accident. How fast they will get there is any ones guess. Always let the dispatcher know about anything you may consider serious or life-threatening so proper urgency is given to your call. You will have to make a determination as to the severity of your injuries or anyone else's in your vehicle, if you need to do not hesitate to go to the hospital. This is not the time to be concerned about the cost of a hospital ER visit, these details can be dealt with later, the most important thing is the health of you and your passengers.
If you determine you are in good enough condition to get out of your vehicle, only do so, IF IT IS SAFE!! If you decide to get out of your vehicle always try to get out through doors on the opposite side of oncoming traffic as you don't want to step into oncoming traffic and get hit by a vehicle or a part to any vehicle. IF, traffic is sparse, you may decide to come out of the drivers side. Remember, safety is the most important thing at this point.
Get your camera and take photos. Photos at accident scenes are taken this way; all photos should have be taken at enough distance so you can see how both vehicles are positioned. Also, take photos that include reference points like; a stop sign, a fire hydrant, a house/building so when you put these photos together you have a broad view of where the accident happened. This will eliminate confusion as to the location where the accident happened. Always get a good clear picture of the other vehicles LICENSE PLATE along with make, model and year information. This information can be found most of the times on the other drivers insurance card. Please take your time to make sure all the information you write down about the other vehicle is correct.
Ask the driver of the other vehicle for their drivers license and insurance card just like the police and write down the name, address. date of birth and drivers license number. Look at the insurance card to see if the drivers name is on it. If it is not, ask who's vehicle are they driving? Let them speak, people often spill the beans on themselves with little or no help. Make a note what the drivers relationship is to the owner.
Up to this point the instructions we have given have been fairly straight forward and make complete sense to you, but now here are the things you haven't thought about. Most of this will come into play when you are dealing with someone who is not honest and it gives you the ability to protect your self from being scammed. Yes insurance fraud happens and it costs the insurance company money, lots of it. And yes you wind up paying for it in the form of higher premiums.
The first thing to do is to see if the driver is alone. If they are not, identify how many passengers they are carrying and get a list of their names if possible. There have been times when at fault drivers are alone and later make up about having passengers at the time of an accident. Another thing to watch for when the other driver was alone is for other people the driver knows to show up between the time the police are called and the time they arrive. Then, the extra people say they were in the vehicle when the accident happened. It is one of the oldest tricks for crooked people.
TRY TO GET PICTURES OF THE PEOPLE IN THE AT FAULT VEHICLE, IF POSSIBLE. This visual evidence can be a claim saver if later people claim to be at your accident scene or even injured in the accident and they were not. If the other driver or their passengers are walking around outside their vehicle, get photographic evidence of this. All too often people claim to be hurt much worse than they are to maximize the settlement amount, your photos may be the proof the adjuster needs to keep the settlement at the correct amount.
Do NOT make any comments whether you are at fault of not!! Let, your claims department which is qualified get all the information about the accident and make that determination. So many times, people who thought they were at fault for an accident actually turned out not to be. So, let the professionals handle this one!
If you called in an accident involving injuries, leave your vehicles where they came to rest after the accident unless doing so places you in danger. There is no reason for your vehicle to get hit more than once. Once is enough! When the police arrive, they are there to only gather facts, keep the roadway safe, assist any injured passengers and to see if they can determine which driver is at fault. Please, please, please do not take the officers time giving them your opinions. I can tell you, they really are not interested in anything else anyone has to say. They just want the facts so they can go about doing their other work.
If you are involved in an auto accident at night use your flashlight!. It makes it easier for on coming vehicles to see you from a distance, slow down, give you space or maybe assist you. Be LEERY of strangers, especially men, assisting you ladies especially if you are alone. A quick call to the police is the easiest way to keep your self from being victimized. If you can do it safely, light a flare and place it beside your drivers side rear bumper for extra safety. Flares are very easy to see at a good distance to alert oncoming vehicle of an accident and for them to be extra careful.
If your vehicle needs to be towed from the accident scene and you have a repair shop you prefer to have you vehicle taken to, let the tow truck driver that is where it is to be taken. Make sure to tell them clearly or they will take it to an impound just to rack up fees which you or your insurance company will have to pay. They really don't care about doing whats right just creating a bigger bill which someone will pay.
Call your claims department as quickly as you can and provide them with as much information as you can. Remember, you were at the accident scene, they were not so be prepared to be asked a LOT of questions. Trust me, they are necessary so your assigned adjuster can begin to develop some impression about who might be at fault. If you claims department calls you answer or return the call as quickly as possible. It will help the process off to a better start and may get the results you are looking for.
This can be a sticky point, car rental. Your vehicle is damaged and you need transportation, right? If you have auto rental on your policy, USE IT. Don't worry about what's right, what's fair, it's not your fault, all those things will not get you around. You need transportation, get it, even if it's through your own policy. There is nothing wrong, evil or bad about using what you pay for to meet your needs. It's simply smart!!
If your insurance company determines the other driver to be at fault, your insurance company knows how to get the money they spent to assist you back, it's call Subrogation. Don't worry about it, I have dealt with this issue hundreds of times and you insurance company should not count your using your benefits against you as if you were involved in an accident that is your fault.
Within the few days following the accident you will probably be contacted by the other drivers insurance company. When they call please let them know from the very beginning if you are being represented by an attorney for your physical injuries. Give them your attorneys name and phone number. Also, do not tell them you have an attorney on this matter, if you don't. An experienced adjuster can tell when you're feeding him a line.
If you are not legally represented, tell the adjuster in simple and direct language that you do not consent to any recording of the conversation you are about to have. Ask the adjuster to confirm to you they understand that your conversation during the course of your claim is not to be recorded. If they have a problem complying with your request, tell them you will contact your State Insurance Board and file a complaint against them.
Listen to their questions and answer it to the best of your ability but make an effort to help them by providing information since you were there and they were not. Also, keep your answers simple, short and to the point so his question gets answered. Do not go on, on and on as you might say something that may come back to haunt you.
Do not make comments about who is at fault. The adjuster can honestly care less what your opinion is about fault. It is his job to come to that conclusion. In most states, an insurance company is allowed a reasonable amount of time to make a determination on what to do with your claim. Let them do their jobs and with cooperation, who knows maybe you will get the answer you hope for in less than two weeks.
Remember, it is your right to hire someone to protect your interests when you are involved in an accident. You are more than welcome to contact our company, VIS at 817-851-7166 or by e-mail at Manny@visdfw.com seven days a week if you are involved in an accident for a free consultation. We can assist you in recovering a fair settlement without paying an attorney 33 1/3% of your settlement amount.
Your mission for the week, if you choose to accept it, is to be ready to make some awesome mental notes. Next week we will talk about bodily injuries claims so tune in. This is going to be a good, meaty blog.
Take care,
Manny and Adriane
Visit us at visdfw.com to learn more about us and the services we can provide.
The most import thing to be done after an accident is to determine if you or any passengers in your vehicle are injured. If you are feeling pain, dizziness, light headed, confusion, or anything different, you were likely injured so CALL THE POLICE and report your accident. Make sure to tell the dispatchers that injuries are involved and the police WILL go to your accident. How fast they will get there is any ones guess. Always let the dispatcher know about anything you may consider serious or life-threatening so proper urgency is given to your call. You will have to make a determination as to the severity of your injuries or anyone else's in your vehicle, if you need to do not hesitate to go to the hospital. This is not the time to be concerned about the cost of a hospital ER visit, these details can be dealt with later, the most important thing is the health of you and your passengers.
If you determine you are in good enough condition to get out of your vehicle, only do so, IF IT IS SAFE!! If you decide to get out of your vehicle always try to get out through doors on the opposite side of oncoming traffic as you don't want to step into oncoming traffic and get hit by a vehicle or a part to any vehicle. IF, traffic is sparse, you may decide to come out of the drivers side. Remember, safety is the most important thing at this point.
Get your camera and take photos. Photos at accident scenes are taken this way; all photos should have be taken at enough distance so you can see how both vehicles are positioned. Also, take photos that include reference points like; a stop sign, a fire hydrant, a house/building so when you put these photos together you have a broad view of where the accident happened. This will eliminate confusion as to the location where the accident happened. Always get a good clear picture of the other vehicles LICENSE PLATE along with make, model and year information. This information can be found most of the times on the other drivers insurance card. Please take your time to make sure all the information you write down about the other vehicle is correct.
Ask the driver of the other vehicle for their drivers license and insurance card just like the police and write down the name, address. date of birth and drivers license number. Look at the insurance card to see if the drivers name is on it. If it is not, ask who's vehicle are they driving? Let them speak, people often spill the beans on themselves with little or no help. Make a note what the drivers relationship is to the owner.
Up to this point the instructions we have given have been fairly straight forward and make complete sense to you, but now here are the things you haven't thought about. Most of this will come into play when you are dealing with someone who is not honest and it gives you the ability to protect your self from being scammed. Yes insurance fraud happens and it costs the insurance company money, lots of it. And yes you wind up paying for it in the form of higher premiums.
The first thing to do is to see if the driver is alone. If they are not, identify how many passengers they are carrying and get a list of their names if possible. There have been times when at fault drivers are alone and later make up about having passengers at the time of an accident. Another thing to watch for when the other driver was alone is for other people the driver knows to show up between the time the police are called and the time they arrive. Then, the extra people say they were in the vehicle when the accident happened. It is one of the oldest tricks for crooked people.
TRY TO GET PICTURES OF THE PEOPLE IN THE AT FAULT VEHICLE, IF POSSIBLE. This visual evidence can be a claim saver if later people claim to be at your accident scene or even injured in the accident and they were not. If the other driver or their passengers are walking around outside their vehicle, get photographic evidence of this. All too often people claim to be hurt much worse than they are to maximize the settlement amount, your photos may be the proof the adjuster needs to keep the settlement at the correct amount.
Do NOT make any comments whether you are at fault of not!! Let, your claims department which is qualified get all the information about the accident and make that determination. So many times, people who thought they were at fault for an accident actually turned out not to be. So, let the professionals handle this one!
If you called in an accident involving injuries, leave your vehicles where they came to rest after the accident unless doing so places you in danger. There is no reason for your vehicle to get hit more than once. Once is enough! When the police arrive, they are there to only gather facts, keep the roadway safe, assist any injured passengers and to see if they can determine which driver is at fault. Please, please, please do not take the officers time giving them your opinions. I can tell you, they really are not interested in anything else anyone has to say. They just want the facts so they can go about doing their other work.
If you are involved in an auto accident at night use your flashlight!. It makes it easier for on coming vehicles to see you from a distance, slow down, give you space or maybe assist you. Be LEERY of strangers, especially men, assisting you ladies especially if you are alone. A quick call to the police is the easiest way to keep your self from being victimized. If you can do it safely, light a flare and place it beside your drivers side rear bumper for extra safety. Flares are very easy to see at a good distance to alert oncoming vehicle of an accident and for them to be extra careful.
If your vehicle needs to be towed from the accident scene and you have a repair shop you prefer to have you vehicle taken to, let the tow truck driver that is where it is to be taken. Make sure to tell them clearly or they will take it to an impound just to rack up fees which you or your insurance company will have to pay. They really don't care about doing whats right just creating a bigger bill which someone will pay.
Call your claims department as quickly as you can and provide them with as much information as you can. Remember, you were at the accident scene, they were not so be prepared to be asked a LOT of questions. Trust me, they are necessary so your assigned adjuster can begin to develop some impression about who might be at fault. If you claims department calls you answer or return the call as quickly as possible. It will help the process off to a better start and may get the results you are looking for.
This can be a sticky point, car rental. Your vehicle is damaged and you need transportation, right? If you have auto rental on your policy, USE IT. Don't worry about what's right, what's fair, it's not your fault, all those things will not get you around. You need transportation, get it, even if it's through your own policy. There is nothing wrong, evil or bad about using what you pay for to meet your needs. It's simply smart!!
If your insurance company determines the other driver to be at fault, your insurance company knows how to get the money they spent to assist you back, it's call Subrogation. Don't worry about it, I have dealt with this issue hundreds of times and you insurance company should not count your using your benefits against you as if you were involved in an accident that is your fault.
Within the few days following the accident you will probably be contacted by the other drivers insurance company. When they call please let them know from the very beginning if you are being represented by an attorney for your physical injuries. Give them your attorneys name and phone number. Also, do not tell them you have an attorney on this matter, if you don't. An experienced adjuster can tell when you're feeding him a line.
If you are not legally represented, tell the adjuster in simple and direct language that you do not consent to any recording of the conversation you are about to have. Ask the adjuster to confirm to you they understand that your conversation during the course of your claim is not to be recorded. If they have a problem complying with your request, tell them you will contact your State Insurance Board and file a complaint against them.
Listen to their questions and answer it to the best of your ability but make an effort to help them by providing information since you were there and they were not. Also, keep your answers simple, short and to the point so his question gets answered. Do not go on, on and on as you might say something that may come back to haunt you.
Do not make comments about who is at fault. The adjuster can honestly care less what your opinion is about fault. It is his job to come to that conclusion. In most states, an insurance company is allowed a reasonable amount of time to make a determination on what to do with your claim. Let them do their jobs and with cooperation, who knows maybe you will get the answer you hope for in less than two weeks.
Remember, it is your right to hire someone to protect your interests when you are involved in an accident. You are more than welcome to contact our company, VIS at 817-851-7166 or by e-mail at Manny@visdfw.com seven days a week if you are involved in an accident for a free consultation. We can assist you in recovering a fair settlement without paying an attorney 33 1/3% of your settlement amount.
Your mission for the week, if you choose to accept it, is to be ready to make some awesome mental notes. Next week we will talk about bodily injuries claims so tune in. This is going to be a good, meaty blog.
Take care,
Manny and Adriane
Visit us at visdfw.com to learn more about us and the services we can provide.
Tuesday, May 1, 2012
The Myth of "Full Coverage"
This will be a short and sweet message for this week. If you have searched through your policy, I bet you didn't find the term, "Full Coverage" did you? Why not? It's not a legitimate insurance term! If it was, the attorneys and underwriters that are involved in putting together the language you see on your policy would have written it in there.
The term is primarily used by people who are selling vehicles and not involved in any way with insurance and by agents. Remember, agents sell insurance products and are not involved with coverage investigations, the actual investigation of any claims, deciding issues of liability or what claims get paid and which ones do not. Insurance claims adjusters really don't like the term because while it sounds like an all encompassing phrase, it is really vague and not a legitimate term.
The usage of this term leaves the policyholder with the impression that any type of loss whether at fault or not; has a coverage on their policy to cover it. You believe those aftermarket parts you put on your vehicle are covered, when in fact they are not. Yep, those upgraded wheels and rims, not covered unless you bought coverage specifically for them.
Remember from our prior blogging, if your policy doesn't show you paying for a coverage, you don't have that coverage! This is why adjusters verbally cover each and every coverage a policyholder has on their policy while speaking with them about their claim. More times than not, this is where I will get an ear full from the policyholder. It's here they find out that coverages they thought were on their policy, are not there. All because of that pesky phrase, "Full Coverage"!!
I make it a point to educate policyholders that the term "full coverage" is not a legitimate term and all coverages on their policy are listed, one by one. Why? So, the policyholder can identify any coverage they want on their policy and address any that aren't listed that with their agent BEFORE they have a loss and find out they don't have the coverage for that loss.
Should you EVER get that dastardly "full coverage" phrase from your agent or claims department, drop some knowledge on them and tell them NOT to use that phrase as you can see how misleading it is. There is truth behind the phrase, "Words have meaning" especially when wrong ones are used.
A topic to write a blog on has been suggested to me. "What should I do right after being in an auto accident"? So, take a guess, what the next blog will be about? You got it! So tune in and learn the things the insurance industry and attorneys don't want you to know.
Your mission this week, should you choose to accept it, gather the following supplies and place them in your car; disposable camera, flashlight (and extra batteries or one that doesn't require batteries), notepad and pen, flares, and a photocopy of your insurance card in addition to the original.
When you find yourself one day in an auto accident, you will have the information available and in mind to handle that accident like a pro!
The term is primarily used by people who are selling vehicles and not involved in any way with insurance and by agents. Remember, agents sell insurance products and are not involved with coverage investigations, the actual investigation of any claims, deciding issues of liability or what claims get paid and which ones do not. Insurance claims adjusters really don't like the term because while it sounds like an all encompassing phrase, it is really vague and not a legitimate term.
The usage of this term leaves the policyholder with the impression that any type of loss whether at fault or not; has a coverage on their policy to cover it. You believe those aftermarket parts you put on your vehicle are covered, when in fact they are not. Yep, those upgraded wheels and rims, not covered unless you bought coverage specifically for them.
Remember from our prior blogging, if your policy doesn't show you paying for a coverage, you don't have that coverage! This is why adjusters verbally cover each and every coverage a policyholder has on their policy while speaking with them about their claim. More times than not, this is where I will get an ear full from the policyholder. It's here they find out that coverages they thought were on their policy, are not there. All because of that pesky phrase, "Full Coverage"!!
I make it a point to educate policyholders that the term "full coverage" is not a legitimate term and all coverages on their policy are listed, one by one. Why? So, the policyholder can identify any coverage they want on their policy and address any that aren't listed that with their agent BEFORE they have a loss and find out they don't have the coverage for that loss.
Should you EVER get that dastardly "full coverage" phrase from your agent or claims department, drop some knowledge on them and tell them NOT to use that phrase as you can see how misleading it is. There is truth behind the phrase, "Words have meaning" especially when wrong ones are used.
A topic to write a blog on has been suggested to me. "What should I do right after being in an auto accident"? So, take a guess, what the next blog will be about? You got it! So tune in and learn the things the insurance industry and attorneys don't want you to know.
Your mission this week, should you choose to accept it, gather the following supplies and place them in your car; disposable camera, flashlight (and extra batteries or one that doesn't require batteries), notepad and pen, flares, and a photocopy of your insurance card in addition to the original.
When you find yourself one day in an auto accident, you will have the information available and in mind to handle that accident like a pro!
Saturday, April 21, 2012
Exclusions
So far we have run a good race in this long and boring, but oh so necessary discussion about coverage. In the world of insurance claims that I work there is a saying: "Nothing about a loss matters until you have verified coverage." Why? It's quite simple, because if there is no coverage, nothing will get paid.
In talking about coverage there is one area that people like to gloss over, exclusions. Yes, ALL policies have exclusions. Exclusions exclude losses from being covered under a policy. If you are at fault for an accident and have no coverage due to an exclusion, the party who's vehicle you damaged and the individuals you injured will sue you directly. You, personally will be responsible to pay for the repairs to their vehicle or other property, all of their medical bills, attorney fees, and pain and suffering, the cost of which would be set by a court. A judgement of this magnitude could cost you everything! Your house, retirement savings, children's education funds, and anything else of value that you have worked so hard for, it now belongs to someone else! Not only are all your current assets seized, your future earnings are also up for grabs to satisfy this judgement, which may not be discharged, even by bankruptcy. You could be working to pay this for the rest of your life! This is why it is extremely important to read this section of your policy.
To tell you what exclusion there are on your personal auto policy, I would have to read each and every policy. So, I will give you examples to use as guidelines. Please take the time to review your individual policy so that you are educated.
One of the top exclusions is using your personal vehicle for commercial purposes. Why? Your auto policy is a personal not commercial policy. The cost of commercial policies are calculated differently than personal policies. If you are using your vehicle in connection with discharging the duties of your job, please look at your policy and speak to your agent about securing a commercial policy.
Let's look at a few examples you may not have considered. First, your teenager gets a job delivering pizzas and gets in an accident. Surprise! There is no coverage on this loss, and because he is a minor you are responsible! Using a vehicle listed on your policy to deliver pizza part time would, under most policies, exclude you from having any coverage. So, if you are delivering pizza, either stop it or get a commercial policy. In our second example, you take a job as a nanny and one of your responsibilities is to pick up the kids after school and get them to all of their activities. You get in an accident while taking little Jane from school to piano lessons, she is hurt and so is the other driver. You got it, there could be no coverage! You are on the hook for all the repairs and doctor bills and other costs as described previously. If you are using your vehicle for any commercial purposes you might as well be driving around with no insurance coverage.
Your insurance company has a copy of an application you either filled out, either in person or you answered the questions over the phone when you spoke with a representative. Somewhere in the application process is written or will be read to you: Any false, misleading or incomplete information you provide resulting in the carrier looking at paying for an at fault loss which they shouldn't will fall under the Exclusion clause of you written agreement with you carrier. This is why you should be completely open and honest when applying for insurance.
A common area where an exclusion may result has to do with people who live with you, and at the time you got your policy were not identified and listed on your application with your carrier. Let's say your application asks you to list all household members age 14 and over. You have a 14 year old son, but don't provide that information to your carrier. One night your 14 year old angel gets your keys and takes off in your car with his friends and gets in an accident. The damage to your vehicle, the other driver's vehicle and the injuries may not be covered by your policy! Why? Simple, you didn't provide the information to your carrier when you first had chance to, so they will use the Member of household, but not listed driver defense. I know this because, well I've used it before. Then once again, you my friend, will be directly sued for the damages.
If you have a change in members of your household let your carrier know as soon as possible so that they don't get you on a surprise exclusion due to your failure to notify them. This would include any teenagers receiving a learners permit, an adult child moving back home, or any long term house guest such as your niece coming to stay for the summer. If you are in doubt about whether a living situation may or may not affect your coverage, contact the carrier and let them make the determination ahead of time.
Another common are where an exclusion may result. Let's say you are a stay at home parent and let you sweet neighbor, sibling or friend use you vehicle regularly, even once a week. Now, that sweet person gets into an at fault accident. The carrier will use the Frequency Usage of Vehicle defense and you will suffer the same fate as in the prior paragraph. So, do NOT let people use any of your vehicles with any frequency, or you may turn out to be one unhappy camper.
Some policies exclude everyone other than the people listed on the policy, period! NOBODY ELSE, NO MATTER WHAT REASON OR EXCUSE YOU GIVE!!!! This is most common with a cut rate insurance company.
The best rule of thumb is to not let anyone, other than those listed on the policy, ever drive the vehicles listed on your policy. Most policies allow someone to use your vehicle once or once in a while but if any pattern begins to develop, bring it to a halt at once or you may regret it. Another idea is to email customer service a clearly explained situation about someone using your vehicle on your policy and how often it may be getting used (ie: x number of times per week or per month) and for how long usage is expected to go on. Ask them to forward your email to Underwriting and have Underwriting email you an answer. What is the purpose of going through all this hassle? If your carrier changes their mind you have an email as proof of their original answer and it may bind the carrier to cover the loss should they change their minds later. Print it and place a copy with your policy. An old trick I learned long ago, a quick email may one day save your hide, I know it has me on more than once occasion.
Here is another example where you might get blindsided with an exclusion. Your sister who has a suspended or revoked license can't get insurance. (Hmm, I wonder why?) She asks you to put her vehicle on your policy, being the helpful person you are, you agree. Her vehicle is involved in an at fault accident and your carrier runs a VIN check and discovers it is registered to someone else. They confirm this through you or the legal owner. Do you think your carrier is going to cover this accident? You are right, NO, they are not! Why not? You can not insure something you don't have a legal interest in. So, take a guess what happens to your friends or loved ones in that at fault vehicle? Nothing good. You carrier will use the, Non-insurable Interest defense, and there is no coverage. They are really in a mess now! A quick word to the wise, if your name is not on the title, don't insure it on your policy. Trust me, we have ways of finding these things out! (Insert evil and sinister laugh)
Wasn't that was fun? No?!? Well hopefully you at least learned something. If you have any general questions, leave them in the comments and I will get an answer posted. If you need an answer asap, contact your carrier directly. Tune in next time when we discuss the myth of "full coverage", you don't miss that one, it will be a gem!
Your mission this week, should you choose to accept it, review your auto policy looking for the term "full coverage".
As always if I can help you in anyway contact me at villarrealinsuranceservices.com
Manny
In talking about coverage there is one area that people like to gloss over, exclusions. Yes, ALL policies have exclusions. Exclusions exclude losses from being covered under a policy. If you are at fault for an accident and have no coverage due to an exclusion, the party who's vehicle you damaged and the individuals you injured will sue you directly. You, personally will be responsible to pay for the repairs to their vehicle or other property, all of their medical bills, attorney fees, and pain and suffering, the cost of which would be set by a court. A judgement of this magnitude could cost you everything! Your house, retirement savings, children's education funds, and anything else of value that you have worked so hard for, it now belongs to someone else! Not only are all your current assets seized, your future earnings are also up for grabs to satisfy this judgement, which may not be discharged, even by bankruptcy. You could be working to pay this for the rest of your life! This is why it is extremely important to read this section of your policy.
To tell you what exclusion there are on your personal auto policy, I would have to read each and every policy. So, I will give you examples to use as guidelines. Please take the time to review your individual policy so that you are educated.
One of the top exclusions is using your personal vehicle for commercial purposes. Why? Your auto policy is a personal not commercial policy. The cost of commercial policies are calculated differently than personal policies. If you are using your vehicle in connection with discharging the duties of your job, please look at your policy and speak to your agent about securing a commercial policy.
Let's look at a few examples you may not have considered. First, your teenager gets a job delivering pizzas and gets in an accident. Surprise! There is no coverage on this loss, and because he is a minor you are responsible! Using a vehicle listed on your policy to deliver pizza part time would, under most policies, exclude you from having any coverage. So, if you are delivering pizza, either stop it or get a commercial policy. In our second example, you take a job as a nanny and one of your responsibilities is to pick up the kids after school and get them to all of their activities. You get in an accident while taking little Jane from school to piano lessons, she is hurt and so is the other driver. You got it, there could be no coverage! You are on the hook for all the repairs and doctor bills and other costs as described previously. If you are using your vehicle for any commercial purposes you might as well be driving around with no insurance coverage.
Your insurance company has a copy of an application you either filled out, either in person or you answered the questions over the phone when you spoke with a representative. Somewhere in the application process is written or will be read to you: Any false, misleading or incomplete information you provide resulting in the carrier looking at paying for an at fault loss which they shouldn't will fall under the Exclusion clause of you written agreement with you carrier. This is why you should be completely open and honest when applying for insurance.
A common area where an exclusion may result has to do with people who live with you, and at the time you got your policy were not identified and listed on your application with your carrier. Let's say your application asks you to list all household members age 14 and over. You have a 14 year old son, but don't provide that information to your carrier. One night your 14 year old angel gets your keys and takes off in your car with his friends and gets in an accident. The damage to your vehicle, the other driver's vehicle and the injuries may not be covered by your policy! Why? Simple, you didn't provide the information to your carrier when you first had chance to, so they will use the Member of household, but not listed driver defense. I know this because, well I've used it before. Then once again, you my friend, will be directly sued for the damages.
If you have a change in members of your household let your carrier know as soon as possible so that they don't get you on a surprise exclusion due to your failure to notify them. This would include any teenagers receiving a learners permit, an adult child moving back home, or any long term house guest such as your niece coming to stay for the summer. If you are in doubt about whether a living situation may or may not affect your coverage, contact the carrier and let them make the determination ahead of time.
Another common are where an exclusion may result. Let's say you are a stay at home parent and let you sweet neighbor, sibling or friend use you vehicle regularly, even once a week. Now, that sweet person gets into an at fault accident. The carrier will use the Frequency Usage of Vehicle defense and you will suffer the same fate as in the prior paragraph. So, do NOT let people use any of your vehicles with any frequency, or you may turn out to be one unhappy camper.
Some policies exclude everyone other than the people listed on the policy, period! NOBODY ELSE, NO MATTER WHAT REASON OR EXCUSE YOU GIVE!!!! This is most common with a cut rate insurance company.
The best rule of thumb is to not let anyone, other than those listed on the policy, ever drive the vehicles listed on your policy. Most policies allow someone to use your vehicle once or once in a while but if any pattern begins to develop, bring it to a halt at once or you may regret it. Another idea is to email customer service a clearly explained situation about someone using your vehicle on your policy and how often it may be getting used (ie: x number of times per week or per month) and for how long usage is expected to go on. Ask them to forward your email to Underwriting and have Underwriting email you an answer. What is the purpose of going through all this hassle? If your carrier changes their mind you have an email as proof of their original answer and it may bind the carrier to cover the loss should they change their minds later. Print it and place a copy with your policy. An old trick I learned long ago, a quick email may one day save your hide, I know it has me on more than once occasion.
Here is another example where you might get blindsided with an exclusion. Your sister who has a suspended or revoked license can't get insurance. (Hmm, I wonder why?) She asks you to put her vehicle on your policy, being the helpful person you are, you agree. Her vehicle is involved in an at fault accident and your carrier runs a VIN check and discovers it is registered to someone else. They confirm this through you or the legal owner. Do you think your carrier is going to cover this accident? You are right, NO, they are not! Why not? You can not insure something you don't have a legal interest in. So, take a guess what happens to your friends or loved ones in that at fault vehicle? Nothing good. You carrier will use the, Non-insurable Interest defense, and there is no coverage. They are really in a mess now! A quick word to the wise, if your name is not on the title, don't insure it on your policy. Trust me, we have ways of finding these things out! (Insert evil and sinister laugh)
Wasn't that was fun? No?!? Well hopefully you at least learned something. If you have any general questions, leave them in the comments and I will get an answer posted. If you need an answer asap, contact your carrier directly. Tune in next time when we discuss the myth of "full coverage", you don't miss that one, it will be a gem!
Your mission this week, should you choose to accept it, review your auto policy looking for the term "full coverage".
As always if I can help you in anyway contact me at villarrealinsuranceservices.com
Manny
Monday, April 2, 2012
Auto Coverage 101 Part 3
OK folks, we are continuing the definition of coverages this week. Please stay with me as this one is BORING, but it can keep you from loosing money you are entitled to if you know how to use it so pay attention.
Personal Injury Protection (PIP) and Medical Pay (Med Pay), while these coverages have some similarity, they are very different. PIP and Med Pay are usually sold in 2,500, 5,000 or 10,000 amounts with 10,000 being the max amount sold in Texas.
PIP usually is used to pay for medical bills and lost wages. It may also be used for domestic assistance, if you are the main person doing the housework. Check with your carrier on this as each carrier may differ. To use it for medical bills, an assignment of benefits form needs to be signed by you to the medical provider you want to use your PIP. The medical provider(s) will spare no time to use it till there isn't anything left as medical providers seem to view PIP or Med Pay as a slush fund.
Med Pay pays for medical bills but it may not pay for lost wages so check with your carrier as carriers differ on this. To use your Med Pay to pay for your medical bills, you must sign an assignment of benefits with the medical provider you want to use your Med Pay benefits or you submit your medical bills directly to your claims department, not your agent.
Please note-If you want to file a PIP or Med-Pay claim yourself, call your claims department and tell them you want to open a PIP or Med-Pay claim and will be sending them bills needing to be paid or tell them a medical provider will be sending your claims department medical bills that you want paid. Yes, you have to speak that directly to your claims department or your bills will sit in a file which will eventually get closed.
While you are filing a claim on your own policy benefits, your carrier does have the right to investigate the facts and circumstances of your claim to make sure they should be paying out on the claim.
PIP extends to the insured, listed additional drivers on your policy, passengers in your vehicle and to listed members of your house hold. It may also extend to people you allow to use any of your vehicle that are not members of your household. Check with you carrier as carriers differ on this.
PIP usually cost more than Med-Pay and there is a good reason. If you are in an auto accident and recover any money from the other drivers carrier and have Med-Pay, your carrier will get all the money they paid out on your medical bills back, it's called Subrogation, leaving you little or nothing. That's why Med Pay usually cost less than PIP. With PIP, if you use it and recover any money from the other drivers carrier, none of that money is touched by your carrier to reimburse them. Now, do you see the advantage of PIP to Med-Pay?
In Texas, if you submit your medical bills to your PIP, you can also submit them to the drivers carrier, if you are a passenger in a vehicle that carries PIP on their policy. While it looks like your getting paid twice on the same bills, you are. Only the great state of Texas could come up with such genius. I guess that why our legislature only meets every other year.
If I had a choice between PIP and Med-Pay, I always would go with PIP.
Attorney's and PIP/Med-pay are a very bad combination. Do not EVER let an attorneys office handle your PIP or Med-Pay benefits for you. Here is why, they will usually charge you a 10% fee to do the same thing you can do, forward your bills to your carrier for payment. So, if you have 10,000 in PIP or Med-pay, you will only have $9,000.00 to use because your attorney took $1,000.00 for themselves as a fee. So, now how helpful are they really being?
Personal Injury Protection (PIP) and Medical Pay (Med Pay), while these coverages have some similarity, they are very different. PIP and Med Pay are usually sold in 2,500, 5,000 or 10,000 amounts with 10,000 being the max amount sold in Texas.
PIP usually is used to pay for medical bills and lost wages. It may also be used for domestic assistance, if you are the main person doing the housework. Check with your carrier on this as each carrier may differ. To use it for medical bills, an assignment of benefits form needs to be signed by you to the medical provider you want to use your PIP. The medical provider(s) will spare no time to use it till there isn't anything left as medical providers seem to view PIP or Med Pay as a slush fund.
Med Pay pays for medical bills but it may not pay for lost wages so check with your carrier as carriers differ on this. To use your Med Pay to pay for your medical bills, you must sign an assignment of benefits with the medical provider you want to use your Med Pay benefits or you submit your medical bills directly to your claims department, not your agent.
Please note-If you want to file a PIP or Med-Pay claim yourself, call your claims department and tell them you want to open a PIP or Med-Pay claim and will be sending them bills needing to be paid or tell them a medical provider will be sending your claims department medical bills that you want paid. Yes, you have to speak that directly to your claims department or your bills will sit in a file which will eventually get closed.
While you are filing a claim on your own policy benefits, your carrier does have the right to investigate the facts and circumstances of your claim to make sure they should be paying out on the claim.
PIP extends to the insured, listed additional drivers on your policy, passengers in your vehicle and to listed members of your house hold. It may also extend to people you allow to use any of your vehicle that are not members of your household. Check with you carrier as carriers differ on this.
PIP usually cost more than Med-Pay and there is a good reason. If you are in an auto accident and recover any money from the other drivers carrier and have Med-Pay, your carrier will get all the money they paid out on your medical bills back, it's called Subrogation, leaving you little or nothing. That's why Med Pay usually cost less than PIP. With PIP, if you use it and recover any money from the other drivers carrier, none of that money is touched by your carrier to reimburse them. Now, do you see the advantage of PIP to Med-Pay?
In Texas, if you submit your medical bills to your PIP, you can also submit them to the drivers carrier, if you are a passenger in a vehicle that carries PIP on their policy. While it looks like your getting paid twice on the same bills, you are. Only the great state of Texas could come up with such genius. I guess that why our legislature only meets every other year.
If I had a choice between PIP and Med-Pay, I always would go with PIP.
Attorney's and PIP/Med-pay are a very bad combination. Do not EVER let an attorneys office handle your PIP or Med-Pay benefits for you. Here is why, they will usually charge you a 10% fee to do the same thing you can do, forward your bills to your carrier for payment. So, if you have 10,000 in PIP or Med-pay, you will only have $9,000.00 to use because your attorney took $1,000.00 for themselves as a fee. So, now how helpful are they really being?
Saturday, March 24, 2012
Auto Coverage 101 Part 2
We are now at the midpoint of this trek through the oh so exciting declaration page of your auto insurance coverage, don't go to sleep quite yet, we have lots of important information for you! Please take a moment, if needed, to get your auto policy so we can get started.
Slowly look at your Declaration Page until you find the information about the vehicles listed on the policy. Each vehicle on your policy will have the following information in or near this area. The year, make, model of the vehicles covered on your policy, as well as the name of the lien holders on these vehicles. Your lien holder will require their information to be provided to your carrier so the loan on your vehicle can be protected up to the value of the vehicle. Note the value of your vehicle may be less than the balance of your loan leaving you owing money to your lien holder. The policy will also list the Vehicle Identification Number also know as the VIN for each of the same vehicles. A VIN is a unique serial number given to each vehicle. No two vehicles will have the exact same VIN numbers. The only vehicles covered by your policy are the ones listed on this page!
Now, we are going to discuss the types of coverage that you can purchase for your vehicle. Your insurance carrier will charge you for each of the coverages I list. The price for each of these coverages will be itemized on the declarations page, by vehicle.
Your policy has limits which usually look like 30,000/60,000/25,000 or 30/60/25. This first number, $30,000.00 is the most amount the policy will pay out to any one person injured in an accident which you are at fault. The second number, 60,000.00 is the total amount your policy will pay out if there are two or more people claiming injuries in an accident which you are at fault. Regardless of the amount of people injured in an accident which you are at fault for, no one person can ever get more than $30,000.00, and your policy will not pay more than a total of $60,000 if two or more people file claims The last number, $25,000.00 is the most your policy will pay on property damage. It usually involves the other vehicle(s) which were damaged as a result of your at fault accident, but it can include buildings, fences, grass, etc. If it belongs to someone else and you damage it, your policy will pay up to the max limit of $25,000.
Texas requires a minimal coverage of 30/60/25, but you can elect to purchase more coverage to protect yourself. The following point is extremely important, if the costs of any bodily injury claim(s) or property damage claim(s) are more than your policy limits, those claimants have the right to sue you directly for the amount above your policy limits! This will involve an accident that results in death, dismemberment, disfigurement or a permanent impairment, really serious stuff.
You notice Texas requires that vehicles have liability insurance not the driver. Drivers are only required to have a valid drivers license from their state of residency. Something to be aware of; In Texas, an at fault driver can not collect against the liability portion of their own auto policy for their injuries or damage to their vehicle. The insurance company had this put into effect to entice you to spend more on the additional coverages, which are optional in most cases.
Collision is coverage that has nothing to do with fault, neither yours or another parties. You can have your vehicle repaired minus your deductible. Deductibles are the amount you will contribute toward the repairs of your vehicle or if your vehicle is not repairable and totaled you will receive the value of your vehicle minus your deductible. If you are in an accident and the other party is at fault but their carrier is giving you the run around you may elect to have your vehicle repaired through this coverage on your policy, so your vehicle can get repaired sooner. If this is the case you must pay your deductible, but you can pursue the at fault carrier for the reimbursement of this expense.
If you are in an accident and the at fault party does not have any auto insurance policies to pay for the medical costs for your injuries from the accident, your carrier will take the place of the at fault person and pay to settle this claim, minus that good 'ole deductible. As a Claims Adjuster, take my word on this; if you do file a Uninsured Motorist claim of any type, you MUST call your assigned adjuster regularly, speak with them directly and ask for detailed updates on your claim. If you do not, the adjuster will do little with your claim.
If your vehicle is not working due to something covered under your policy, you can get temporary transportation. This coverage pays a max of X dollars per day usually for a total of 30 days. Your policy will show you the daily rate your carrier will cover. You can sometimes get more on the daily rate allowance but you will have to pay more in premium on your policy to get it, make sure you have enough to cover the cost of what ever vehicle you will need. Please take care of this before you are in an accident, otherwise you will be stuck at the lower per day amount. For example, we drive a minivan to haul around our large family, we could never fit into a compact car so we have rental coverage at a rate that will get us a minivan or SUV while our vehicle was being repaired. Also, most policies will not allow you to use all 30 days, if your vehicle is totalled. The policy usually says after your carrier has made you an offer to settle your collision or Uninsured Motorist Property Damage claim, they have the right to end your rental coverage.
On a third party claim (a claim against someone else's insurance company) you are entitled to a same/similar vehicle. You do not have to accept their offer of a low end vehicle if you drive a higher end vehicle. The carrier may tell you they do not pay more than X dollars a day for rental coverage, however Texas Department of Insurance (TDI) views this matter otherwise. Test them on this by requesting a copy of the language on the policy that confirms their daily rental rate, if they won't or can't do this, let the adjuster know you will be filing a complaint with TDI and in most cases they will cave in and you will win.
Your mission today, should you choose to accept it, examine your auto policy and determine the amount of the deductible you will be responsible to pay when someone decides that they want your car combined with theirs. Then examine your finances and see if you have this money readily available when this blessed event occurs.
And remember, when the day that you are involved in a car accident (whether you are the driver or as a passenger) please don't hesitate to contact us,. We will be glad to assist you in recovering the largest settlement you are entitled to. Why hire an attorney when we can assist you and you wind up with more money in your pocket?!
Visit us at VillarrealInsuranceServices.com to learn more about our services and be sure to like us on Facebook at facebook.com/villarrealinsuranceservices or follow us on Twitter @VIStheInsGame.
Slowly look at your Declaration Page until you find the information about the vehicles listed on the policy. Each vehicle on your policy will have the following information in or near this area. The year, make, model of the vehicles covered on your policy, as well as the name of the lien holders on these vehicles. Your lien holder will require their information to be provided to your carrier so the loan on your vehicle can be protected up to the value of the vehicle. Note the value of your vehicle may be less than the balance of your loan leaving you owing money to your lien holder. The policy will also list the Vehicle Identification Number also know as the VIN for each of the same vehicles. A VIN is a unique serial number given to each vehicle. No two vehicles will have the exact same VIN numbers. The only vehicles covered by your policy are the ones listed on this page!
Now, we are going to discuss the types of coverage that you can purchase for your vehicle. Your insurance carrier will charge you for each of the coverages I list. The price for each of these coverages will be itemized on the declarations page, by vehicle.
Liability
Look at Liability insurance as the foundation which the other coverages you purchase are built on. Texas requires liability insurance to be on all vehicles driven on a public road. Liability insurance protects people who are injured and property that is damaged from an accident where you are at fault. In all the years I have handled insurance claims I rarely ever heard anyone say they are at fault for an accident, even a lady that hit the concrete pillar supporting a sign in a parking lot thought it wasn't her fault, which is why adjusters and the courts decide this issue.Your policy has limits which usually look like 30,000/60,000/25,000 or 30/60/25. This first number, $30,000.00 is the most amount the policy will pay out to any one person injured in an accident which you are at fault. The second number, 60,000.00 is the total amount your policy will pay out if there are two or more people claiming injuries in an accident which you are at fault. Regardless of the amount of people injured in an accident which you are at fault for, no one person can ever get more than $30,000.00, and your policy will not pay more than a total of $60,000 if two or more people file claims The last number, $25,000.00 is the most your policy will pay on property damage. It usually involves the other vehicle(s) which were damaged as a result of your at fault accident, but it can include buildings, fences, grass, etc. If it belongs to someone else and you damage it, your policy will pay up to the max limit of $25,000.
Texas requires a minimal coverage of 30/60/25, but you can elect to purchase more coverage to protect yourself. The following point is extremely important, if the costs of any bodily injury claim(s) or property damage claim(s) are more than your policy limits, those claimants have the right to sue you directly for the amount above your policy limits! This will involve an accident that results in death, dismemberment, disfigurement or a permanent impairment, really serious stuff.
You notice Texas requires that vehicles have liability insurance not the driver. Drivers are only required to have a valid drivers license from their state of residency. Something to be aware of; In Texas, an at fault driver can not collect against the liability portion of their own auto policy for their injuries or damage to their vehicle. The insurance company had this put into effect to entice you to spend more on the additional coverages, which are optional in most cases.
Comprehensive
Sometimes called comp for short, this usually covers damage to your vehicle where you are not at fault. These might include things like hail, vandalism or Dorothy's house dropping on your car. Your policy will list the events that are covered under this portion of your policy (this list is NOT on the declarations page but is listed later in the actual policy language). If your vehicle has a lien on it (you will know this is the case if you are sending someone a payment on the vehicle) you are required to carry comp on the vehicle along with Collision, the next coverage discussed below.
Collision
Collision is coverage that has nothing to do with fault, neither yours or another parties. You can have your vehicle repaired minus your deductible. Deductibles are the amount you will contribute toward the repairs of your vehicle or if your vehicle is not repairable and totaled you will receive the value of your vehicle minus your deductible. If you are in an accident and the other party is at fault but their carrier is giving you the run around you may elect to have your vehicle repaired through this coverage on your policy, so your vehicle can get repaired sooner. If this is the case you must pay your deductible, but you can pursue the at fault carrier for the reimbursement of this expense.
Uninsured Motorist
Property Damage
If you are in an accident and the at fault party does not have any auto insurance to pay for damage to your vehicle, your carrier will take the place of the at fault person and pay your damage claim minus that good 'ole deductible. Even though Texas requires drivers to carry liability on their vehicles The Texas Department of Insurance estimates that 17-26% of drivers do not carry any auto coverage. Click here if you want to read more about this. This is a good reason to at least look at adding this coverage to your policy.
Bodily Injury
If you are in an accident and the at fault party does not have any auto insurance policies to pay for the medical costs for your injuries from the accident, your carrier will take the place of the at fault person and pay to settle this claim, minus that good 'ole deductible. As a Claims Adjuster, take my word on this; if you do file a Uninsured Motorist claim of any type, you MUST call your assigned adjuster regularly, speak with them directly and ask for detailed updates on your claim. If you do not, the adjuster will do little with your claim. Underinsured Motorist
As the name implies Underinsured Motorist covers your vehicle if an at fault party does not carry enough coverage to repair your vehicle. Lets say a driver from Arkansas hits you and does $18,000 in damage to your vehicle but they only carry $10,000 in coverage their insurance will only pay $10,000 leaving you with $8,000 to pay out of your own pocket. Underinsured motorist relieves you of this burden and picks up the tab, minus your deductible. Some carriers put uninsured and underinsured motorist together in one package, others split the coverage so be sure to ask your carrier specifically about this. Do you have a headache yet? I know I do.
Rental
If your vehicle is not working due to something covered under your policy, you can get temporary transportation. This coverage pays a max of X dollars per day usually for a total of 30 days. Your policy will show you the daily rate your carrier will cover. You can sometimes get more on the daily rate allowance but you will have to pay more in premium on your policy to get it, make sure you have enough to cover the cost of what ever vehicle you will need. Please take care of this before you are in an accident, otherwise you will be stuck at the lower per day amount. For example, we drive a minivan to haul around our large family, we could never fit into a compact car so we have rental coverage at a rate that will get us a minivan or SUV while our vehicle was being repaired. Also, most policies will not allow you to use all 30 days, if your vehicle is totalled. The policy usually says after your carrier has made you an offer to settle your collision or Uninsured Motorist Property Damage claim, they have the right to end your rental coverage. On a third party claim (a claim against someone else's insurance company) you are entitled to a same/similar vehicle. You do not have to accept their offer of a low end vehicle if you drive a higher end vehicle. The carrier may tell you they do not pay more than X dollars a day for rental coverage, however Texas Department of Insurance (TDI) views this matter otherwise. Test them on this by requesting a copy of the language on the policy that confirms their daily rental rate, if they won't or can't do this, let the adjuster know you will be filing a complaint with TDI and in most cases they will cave in and you will win.
Your mission today, should you choose to accept it, examine your auto policy and determine the amount of the deductible you will be responsible to pay when someone decides that they want your car combined with theirs. Then examine your finances and see if you have this money readily available when this blessed event occurs.
And remember, when the day that you are involved in a car accident (whether you are the driver or as a passenger) please don't hesitate to contact us,. We will be glad to assist you in recovering the largest settlement you are entitled to. Why hire an attorney when we can assist you and you wind up with more money in your pocket?!
Visit us at VillarrealInsuranceServices.com to learn more about our services and be sure to like us on Facebook at facebook.com/villarrealinsuranceservices or follow us on Twitter @VIStheInsGame.
Saturday, March 17, 2012
Auto Coverage #101
We're going to go through the different types of policies one by one. We are starting with auto since, #1 we have to start somewhere and #2 the great State of Texas says you have to have an auto policy if you have a car.
Test time! Did you complete your mission last week? If so your ready, please take a moment and get you auto policy (not your insurance card) so we can start.
Let me give a quick word picture to explain coverage to you. If we look at a square drawn on a piece of paper we see an area within the boundries of the square and an area outside of it. The things inside the square are the items covered by your policy. The things outside the square are the items that are not covered by you policy. Then, we have the actual boundry itself that seperates the items inside the square from the items outisde the square. We will call this the "grey area" that is when the carrier does what's called a Coverage Investigation but for now we will focus on the items in our box.
Slowly, look the the top portion of the first pages on your auto policy until you see what's titled-Declarations Page. This is our starting point so let's hold our nose and dive into this very important page. This page gives you a simple and quick breakdown of the coverages you have paid for on your policy. Slowly look at the Declarations Page and you will find the name and address of the actual company that issued the policy. This page may also have the phone number(s) to call if you are in an accident. A good suggestion is to put this number in your cell phone so if you are in an accident you can call them immediately. It cuts down on the stress and hassle which you find yourself immersed in after an accident.
Now look for the policy number, it may be made up of numbers, letters or combination of both. Your policy number is a unique identity like a serial number. If you renew your policy and it does not lapse then you should maintain the same policy number. If this information can go into your cell, put it there so you can refer to it if you are in an accident.
In Texas, auto policies are usually written in six month periods. These timeframes are usually called the "Coverage Period" of your policy. It shows the date the coverage on your policy started and the date it will end, if it is paid timely!!! You will notice the time of 12:01 AM which means at one minute after midnight on the date your policy ends so does your insurance coverage. If you have an accident at 12:00:59 you are covered, have an accident at 12:01:00 and you are not!
There are names listed on your Declaration Page. Usually, the first name listed is the person the auto policy was actually issued to. However, while my wife is listed first on our policy, our policy lists both of us as "Named Insured". You may also see other names listed on your policy. These are usually named, Additional Drivers. These are people who are covered by the policy and allowed to use your vehicle.
Your mission this week, should you choose to accept it, grab your smart phone and educate it on your insurance information so you will have it when you need it most. Next week, we will walk through the different types of things you can pay to have covered on your auto policy finishing up our work with the Declaration Page.
Test time! Did you complete your mission last week? If so your ready, please take a moment and get you auto policy (not your insurance card) so we can start.
Let me give a quick word picture to explain coverage to you. If we look at a square drawn on a piece of paper we see an area within the boundries of the square and an area outside of it. The things inside the square are the items covered by your policy. The things outside the square are the items that are not covered by you policy. Then, we have the actual boundry itself that seperates the items inside the square from the items outisde the square. We will call this the "grey area" that is when the carrier does what's called a Coverage Investigation but for now we will focus on the items in our box.
Slowly, look the the top portion of the first pages on your auto policy until you see what's titled-Declarations Page. This is our starting point so let's hold our nose and dive into this very important page. This page gives you a simple and quick breakdown of the coverages you have paid for on your policy. Slowly look at the Declarations Page and you will find the name and address of the actual company that issued the policy. This page may also have the phone number(s) to call if you are in an accident. A good suggestion is to put this number in your cell phone so if you are in an accident you can call them immediately. It cuts down on the stress and hassle which you find yourself immersed in after an accident.
Now look for the policy number, it may be made up of numbers, letters or combination of both. Your policy number is a unique identity like a serial number. If you renew your policy and it does not lapse then you should maintain the same policy number. If this information can go into your cell, put it there so you can refer to it if you are in an accident.
In Texas, auto policies are usually written in six month periods. These timeframes are usually called the "Coverage Period" of your policy. It shows the date the coverage on your policy started and the date it will end, if it is paid timely!!! You will notice the time of 12:01 AM which means at one minute after midnight on the date your policy ends so does your insurance coverage. If you have an accident at 12:00:59 you are covered, have an accident at 12:01:00 and you are not!
There are names listed on your Declaration Page. Usually, the first name listed is the person the auto policy was actually issued to. However, while my wife is listed first on our policy, our policy lists both of us as "Named Insured". You may also see other names listed on your policy. These are usually named, Additional Drivers. These are people who are covered by the policy and allowed to use your vehicle.
Your mission this week, should you choose to accept it, grab your smart phone and educate it on your insurance information so you will have it when you need it most. Next week, we will walk through the different types of things you can pay to have covered on your auto policy finishing up our work with the Declaration Page.
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