Auto Insurance Claims: What to do if your car is Damaged
From windstorms to thieves to bad drivers, there are all sorts of reasons why you might find yourself in the position of having to make a claim on your auto insurance.
If your car has been damaged, you must report the accident to your insurer within seven (7) days. If the damage is due to a collision, the claim will be made on the “collision” portion of your policy (hence the obvious name). If it is any other kind of damage, or theft, the claim will be made on the “comprehensive” or “all perils” or “specified perils” portion of your policy. Most private auto plans have comprehensive coverage for theft, fire, or other disasters that my damage your vehicle. The other types of plans are usually used in commercial vehicle policies.
The Insurer will send its appraiser to the body shop where your car has been towed and assess the damage. The Insurer will pay for the damages based on that assessment. The Insurer is entitled to use used parts, provided they are at least of the quality as the parts that were damaged. If you want new parts, you may negotiate a price with the body shop. Once the repairs are done, the Insurer will usually make the settlement cheque co-payable to you and the body shop. If you are not satisfied with the repairs, the Insurer will not become involved in any dispute you may have with the body shop. Sometimes, the insurance appraiser misses some damage, or under-estimates the cost of the damage. If it is significant, you may wish to hire your own appraiser to assess the damage. If you are not satisfied with the Insurer’s property damage settlement, you can sue the Insurer in court for the balance.
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