Home » Car Insurance Claim Traps of 2021: Tips On How to Avoid These Common Traps
Written by Huma
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Car insurance Claim Traps can turn out to be a risky business for you if you don’t identify them from the start. Not only you get trapped in rigid insurance policies but also you might be putting your and other lives in danger.
As the name suggests, anyone can go through accidents at any time.
So what kind of these car insurance claim traps are to be?
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To answer that, we have enlisted common car insurance claim traps of 2021 along with tips to avoid them.
This list contains information about the claim traps and different situations that you may face. Other than this there are many mistakes that you make which leads to problems in the future.
Like many people, you may make mistakes when filing insurance claims. Such mistakes are easy to make but can have serious consequences, including a delayed payment or even a claim denial.
Hence, here are some common mistakes made by people as well as steps you can take to avoid them.
One common mistake is failing to contact your insurer right away about an accident or loss that is potentially covered by your policy. Don’t delay!
Call your insurer immediately. This is important for two reasons.
If you prefer, you can report a loss or claim to your insurance agent or broker. The latter will forward the information to your insurer on your behalf.
Therefore, your agent or broker will obtain the claim forms and help you complete them.
Poor record-keeping on your part may delay your recovery for a claim. Document every communication you have with your insurer regarding your claim.
When an accident or loss occurs, document the scene with a camera if you can do so safely. Take photos of your damaged vehicle. Submit the pictures to your insurer when you file your claim.
Thus, the photos can help verify your written description of the events and damaged vehicle.
You may also delay your claim payment if you are uncooperative with your insurer.
You should also be familiar with the loss conditions in your policy. These outline the obligations you must fulfill under the insurance contract to obtain payment for a claim or loss.
Therefore, many policies specifically state that you must cooperate with the insurer in the investigation or settlement of the claim. Liability policies also require you to cooperate in your defense.
In some cases, you may violate the terms of your policy if you fail to call the police. Many car insurance policies obligate you to contact the police if a law has been broken.
If an accident occurs in which a third party sustains minor bodily injury or car damage, you may be tempted to compensate that person out of your own pocket rather than file an insurance claim. This is a bad idea for several reasons.
Thus, think twice before you make out-of-pocket payments for injuries to people who have been affected by the accident.
As noted previously, seemingly small injuries can become large ones. They can also generate lawsuits against you.
Most auto physical damage claims are settled based on the insurer’s calculation of the value of the damaged vehicle. Damaged autos are normally valued based on their actual cash value (ACV).
No matter how your damaged vehicle is valued, you should obtain realistic estimates of the cost to repair or replace it.
This person will negotiate with the insurer’s adjuster on your behalf to obtain a favorable settlement.
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When an accident occurs in which someone else is injured or their car is damaged, don’t admit liability.
There are several reasons for this.
Therefore, an admission of fault might constitute a breach of the insurance contract, which could be grounds for the insurer to deny coverage for the claim.
Once you’ve filed a claim, you can sit back, relax, and wait for payment from your insurer, right?
The answer is no! Don’t lose track of your claim. If several weeks go by and you haven’t heard from the adjuster, follow up with an email or phone call. Thus, ask for a progress report.
There are many people who do not enjoy reading insurance contracts. Yet, reading your policy is essential as you need to understand what it does and doesn’t cover.
We have also explained tips that will help you to solve these mistakes. Below is a list of some car insurance claim traps and different scenarios in which you can face these traps.
If you follow the tips that we have given along with the scenarios, it is likely that you will avoid traps;
1. Rear-End Crash
The Rear End crash type of accidents are caused mostly when the drivers lack concentration in their driving, this can be easily avoided if the driver is focused only on driving rather than some other disturbances like using a mobile phone, changing songs while driving, speaking to someone without checking out the vehicles forward or backward, etc.
Thus, this will help the driver to focus on the road and driving without being distracted from any other activities.
2. Windshield Damages
Windshield cracks and chips claims are also considered to be the most common problem in the list, and many drivers think that this damage cannot be avoided, but you can do it with simple steps.
We agree that you can’t make any pebbles or rocks to be idle on the road or ground, but you can take specific steps to avoid these damage to take place.
Therefore, in the case of ice and snow, you can keep a distance between any trucks for avoiding the hit as well as make sure you maintain an extra mile in the case of place with plows.
3. Parked Vehicle Damages
This is one of the common problems every driver’s face, you park your car, and people easily hit your car and fly like an airplane without evening turning back.
4. Backup Accident
NHTSA has identified in research that there are about 500,000 back over and backup accidents are happening every year, among them, 15,000 accidents lead people to injuries, and 210 accidents lead to death and other life-threatening problems.
Therefore, be careful to get a camera-equipped vehicle if you are in the plan of getting a new car, in the case of existing cars you can get a backup camera kit which would cost in the range of 250 AED to 1500 AED, and this cost varies based on the features you need.
5. Single Car Crash
According to the National Transportation System Center of John A. Volpe, one out of five accidents are caused due to the reason of leaving your car in the road, and there are more than 8,000 deaths happening per year, these damages can also be controlled easily and can be avoided.
A survey result of research in 2015 has explained that 40% of the drivers fall asleep, the young drivers’ numbers are higher when compared to the older persons.
Thus, to avoid this car insurance claim traps, there are many innovations developed to keep your car idle in the right lane, but still, you need to be more careful that you are not falling asleep during your drive for avoiding this problem.
7. Hail Damage
If you are located in an area that is prone to higher hail storms then you need to park your car under cover so that your car doesn’t get more damage, you can allocate extra space for your garage and safeguard with new safety apparatus for keeping yours from lousy weather hits.
8. Break-ins and theft
Every area will differ, and there is a high chance for your car to have a car break-in in some cases.
You can avoid these issues if you stop keeping any valuable items in your car parking. Therefore, also make sure you park the car in a safe and secure place to prevent the car break and theft.
9. Personal Injuries
Neck, back, and other related injuries are typical during a car accident, and even a fender bender will result in severe whiplash, neck, back, and other injuries.
10. Intersection Crashes
Confusing and busy Intersections will lead you to crashes, but this may happen at any time.
You cannot assure that other drivers will follow the traffic rules as you do so it is essential when you are approaching an intersection.
Hence, when you stop at the red signal make sure other drivers are not speeding up through the yellow light, in this case, you need to hit the brakes immediately to safeguard you from hitting the car.
In order to establish the safe driving zone in the city authorities like The Federal Highway Administration is working with states, cities, insurance companies and other concerned people about creating awareness on car insurance claim traps.
Thus, drivers can make up with the right decision to reach their destination safely.
If you follow these tips, you can avoid getting into trouble from the very start. Make sure you are careful throughout the process so that you can stay ahead of these car insurance claim traps.
Originally published Jan 20, 2021 12:31:00 PM, updated May 18, 2021