Tuesday, May 22, 2012
Plenty of gas in the tank? – Check. Properly-inflated tires? – Check. What about your auto insurance? How long since that’s been checked?
“Many Oklahomans haven’t reviewed their auto insurance in years,” Insurance Commissioner John Doak said. “It’s a crucial safety feature to check before you hit the road on a summer road trip. With hundreds of thousands of Oklahomans expected to be on the highway for the Memorial Day weekend, this is a timely reminder.”
In case you’re involved in an accident, it’s also important to know what happens when you file a claim. The Oklahoma Insurance Department and the National Association of Insurance Commissioners (NAIC) offer these tips for consumers planning summer travel.
Before You Leave
If You’re In an Accident
What to Expect After the Accident
Rental Cars
If your car was damaged as result of another driver’s negligence, the other driver’s insurance company should pay your rental car costs for a reasonable length of repair time. If your car is totaled, many companies will pay for your rental as a courtesy, but they are not required to do so.
If you are filing a claim with your own insurance company, the cost of a rental car will be covered if you paid a premium to include rental reimbursement coverage in your policy. Most policies have a dollar limit for rental payments, so check your policy if you have questions.
Uninsured Drivers
Nearly one in four Oklahoma drivers doesn’t have auto insurance. If an uninsured driver caused the accident, then your insurance company will pay for damage to your vehicle if you have collision coverage or uninsured motorist property damage. If your damage is repaired under your collision coverage – be aware you will still have to pay a deductable.
Repair
Even if your claims adjuster recommends a specific body shop, you can get your car repaired wherever you like. To avoid any confusion, be sure to tell the claims adjuster which shop you’re using before any of the work is done.
If Your Car Is a Total Loss
If the damage to your car is extensive, and the claims adjuster determines the cost to repair your car is greater than the value of your car, the insurance company might choose to declare your car as a total loss. When this happens, your insurance company has the option to take the title for your vehicle when it issues payment on your claim.
The insurance company will use the Kelley Blue Book as a guide to valuing the car. The insurance company is required to pay what your vehicle was actually worth at the moment before the crash. The claims adjuster will check to see what a car like yours (same make, model and year) is worth in your area.
It is also a good idea for you to independently research the value of your car before agreeing to a settlement with the insurance company.
Ramifications of Filing a Claim
An accident filed your insurance company might cause your rates to rise. Premium increases are more likely when the accident is your fault; however, an insurance company might also raise your premiums if you have more than one not-at-fault accident within a policy period. If you have a question about a rate increase following a claim, call the Oklahoma Insurance Department at 1-800-552-0071 or go to www.oid.ok.gov.
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For more information contact:
Brian King, Communications and Public Information Manager
(405) 521 – 4525