Common Problems with Car Insurance Claims

It's one thing to sign up for an auto insurance policy; it's yet another thing to file car insurance claims. As most drivers eventually find out, many car insurance claims are not a simple case of following the ABCs, but rather, a complicated exercise much like a mathematical word problem. Here are some of the most basic ways drivers can prevent car insurance problems when filing a claim.

• Stale claims - This is a leading problem area with any kind of car insurance claim. Just as in a criminal case, a car insurance claim "dies" with every passing hour. Calling the insurer should be done along with all of the immediate tasks, such as the police report or any other notifications. Waiting to call it a claim will mean more questions, more ambiguity and more problems.
• Inadequate documentation - Drivers who need insurers to pay claims have to be clear about what they're reporting. Calling to say "somebody hit me" or some version of this is often not enough to get a claim paid. Take photos, and collect all the information necessary to fast-track the claim and prove what actually happened on the road. It may help some drivers to have an accident checklist with all the needed documentation represented.
• Ambiguous coverage - Another big fiasco with many car insurance claims is that drivers may not know what is covered. In some cases, the insurer may not know either. Drivers who don't keep track of their specific insurance coverage get all kinds of nasty surprises in a variety of claims in areas. The insurer may come back with some ambiguous clause in the policy over what kind of damage is covered, how much damage is covered, and what kinds of mitigating circumstances might avoid coverage. They can also come back with "value issues," where the insurance company can claim a car is nearly worthless and doesn't require much of a payout. All of these things can be avoided if drivers clearly outline their coverages with the insurer when they purchase the policy. The policy buyer should keep all of this well documented in a safe place to use in the event of a claim.

Keep these tips in mind for dealing with some common auto insurance problems.