How Insurance Companies Begin Your Insurance Claim

November 21, 2016 · Posted in General Articles on Car Insurance 

Whether it is an accident, vandalism or burglary, the best thing about owning a car Insurance is, you can make the Insurance Company handle the replacement of the missing expensive accessories / damaged parts or repairs in many cases by just filing a claim and paying a minimum amount of deductible.

The process for making a claim starts with informing your insurance company about the event that occurred. The insurance agent you contact will begin the initial examination checklist. Their job is to verify that the claim is legitimate and determine the amount of compensation one will receive. They also are responsible for determining the amount of your claim that the insurance company will cover. These checklists generally includes questions about the incident and your policy and coverage details.

The first thing the insurance agent will check for is to make sure your policy is active. When you file a claim your insurance policy must be paid up-to-date and not have lapsed to obtain your coverage.

Your policy has certain coverage amounts and there are items that are not covered, the insurance agent will go over your policy contract and determine if the claim you are filing is in fact covered by the policy. If you have only liability insurance or third party cover then you will not be able to collect on damages such as car theft.

Your policy might exclude certain perils such as flood or fire and if this is part of your claim you will not be covered and the claim be denied. If the car was stolen or vandalized the checklist examination will look at if these items were on the policy. If you had an expensive set of golf clubs in the trunk when the car was stolen or if your expensive stereo was taken during a break in you can collect for reimbursement if these items were specified on your policy.

As it taxes the assets of the Insurance company, the Insurance agent usually looks for policy violation, checks if the driver has stood up to their standard of requirements and might even review items again, so that it can be excluded from the Insurance coverage. Even though it sounds rude, the company usually juggles up for reasons to avoid paying to a claim which at times may burn a hole in the policy owner?s pocket.

Other than looking out for policy reasons, the trained insurance agent might even carry a checklist to rule out suspicion in case of fraudulent claims. For example Expensive trunk load of goods carried in an old car, if reported as stolen and has been filed for a claim, the agent might raise a suspicion that it might be a fraudulent claim by the policy owner. Misleading facts and false information might lead to the coverage being denied. Once the checklist is complete along with the Initial examination, the agent forwards the case to its assessor along with his reports of examination, to assess and approve claim, if it is genuine.

Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal, which helps people save on their car insurance.

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