Auto insurance is required to drive a vehicle in most U.S. states. Because of these laws, people who do not have a lot of money must pay for something they can't always afford.
There can be some confusion for insurance customers, and getting tips from professionals can be required to get insurance issues resolved. Problems can also occur when a misunderstanding between the insurance company and customer leads to someone not getting the money they think they are entitled to in a claim.
Free legal advice on auto insurance is available from lawyers and legal pros everywhere around the country if it comes to that after negotiations. Hopefully, both parties can be mature and understanding, avoiding the need for legal action. But we know people are not always level-headed when it comes to problems involving cash.
We will discuss the ways that both parties can avoid these struggles. Honesty and common-ground thinking are the keys to a positive outcome between any business and customer.
What can I do to simplify the insurance process?
Let's start with the responsibilities of the person taking out an insurance policy. There are several legalities you can address that will make your life easier. The first is simply having an insurance policy.
In states where insurance is legally required, police will ask for proof of insurance if you get pulled over. Not having it carries a heavy fine. And don't try to create a fake insurance policy or be dishonest about your status. This could lead to perjury and other more serious legal consequences.
If you know you have to get insurance in your state of residence, study the different rates among companies in your area to see how to get the best rates for you. What your friends or family members have may not be the best policy for your situation.
An overlooked detail that can lead to cheaper rates on insurance is the location you live in. If you live in an area where there is less traffic and crime, you will be less of a risk to the insurance companies. This means rates and claims after accidents in a small town near Oklahoma might be cheaper than if you are living in a big city like Atlanta.
This is a general rule, but there may still be more expensive rates in smaller cities than in big ones. There are many factors that will be considered beyond just the population of a city. Other safety factors like the types of cars that are driven, the number of car break-ins per city, and the number of speeding tickets given out matter too.
Many people who have moved from a safer area to a more risky one will try to lie on their insurance application. They may say they still park their car in their old location, or they will leave the registration in the previous city's location to keep their cheap rates.
This is insurance fraud. Your insurance company can take you to court, file a lawsuit, and end your relationship forever. It will also be very difficult for you to get another policy with another company if they see your history of insurance fraud.
Honesty is always the best policy. If you communicate what your issues are, there will be no reason to bring anyone to court or penalize you in the long term.
If you find that your company is not paying you for a claim they're supposed to pay for, there are several different avenues you can take.
How can I get an insurer to pay a claim?
Car insurance claims are up to interpretation quite often. One person in an accident says it was your fault, while you think you did nothing wrong. This creates a stalemate where insurance companies may not pay for the type of coverage you initially thought you were getting.
If you feel you are getting the short end of the deal, it doesn't always have to get hostile. Many lawyers can negotiate a better payout for you after an accident. They will lay out all the options to your insurance company and let them know you will not stop without getting what was guaranteed to you when you bought the policy.
If the process gets a little more heated, your lawyer can go to small claims court and get you the minimum payout after an accident. These payouts will vary by what state you are in, but they can go over $20,000. You will not be able to take any more action after this, so it is like a consolation for not getting what you originally thought was possible.
Arbitration is another option involving a third party that will not have any biases. This usually saves both the insurance company, lawyers, and customers time because the issues will be discussed out of court, and you will get a fair evaluation. You may not get exactly what you thought, but you know that the person working your case has no favoritism either way. They will look at the case evenly.
How common are legal issues in insurance?
Legal issues shouldn't pop up frequently with insurance and car accidents. Most of the arguing happens between the two people involved in the accident, not the insurance company you are with.
There is no way to calculate exactly how often legal issues arise during these circumstances. It's just important to educate yourself on the importance of honesty and communication when dealing with insurance. You do have legal rights if your company is not holding up its end of the relationship.
Educate yourself and don't let anyone take advantage of you. At the same time, you need to pay all your financial obligations to your company. Most of the time, your agent will have your back if you are a customer who has proven you are easy to work with. That's what an insurance agent is for. They are the bridge between you and the company.
People often don't put enough thought into what insurance company they are going to work with. Putting effort into the shopping process should help alleviate any problems before they occur. If you understand what you are responsible for and what your company is responsible for, you aren't likely to have any problems.
About The Author: Shawn Laib writes and researches for the legal site, FreeAdvice.com. He wants to help everyday people understand insurance and provide answers for common questions they may have
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