Car insurance coverage can be confusing—from purchasing to making a claim.
Unfortunately, even if you pay your premiums on time, it doesn’t mean your insurance company will always treat you fairly.
Insurance companies will always look out for themselves and try to pay out as little as possible during the claims process.
There are numerous things insurance companies don’t want you to know. Here’s a look at the top five:
1. Insurance Wants to Total My Car—Why That Could Be Bad
If you’ve been in an accident with significant property damage, your insurance company may want to declare your vehicle a total loss.
Unfortunately, the insurance company isn’t necessarily acting in your best interest when they do. You may receive less than your car is worth or the cost to replace it.
The insurance company doesn’t want you to know they save money by totaling the vehicle rather than repairing it.
2. Your Vehicle Could Be Worth Significantly Less Following Repairs
Even if your insurance company doesn’t total your vehicle, it is likely worth significantly less once repaired.
Alabama is one of the few states where you can file a diminished value claim. Diminished value claims allow people to collect compensation for your vehicle if it sustained damage and is worth less.
You have the right to pursue a diminished value claim provided you are not at fault for the collision, the vehicle damage was due to the accident, and you have your own auto insurance coverage.
3. Insurance Companies Typically Don’t Cover Personal Property
If you make a claim for your personal property in the vehicle at the time of the accident, your insurance company will likely deny coverage.
Alabama requires you to purchase liability insurance, but that doesn’t offer any compensation for your own vehicle or personal property.
If you have collision coverage, your coverage will handle vehicle repairs or the total loss value.
However, language in the policy terms likely excludes personal property. You would need to pursue your personal property losses through the at-fault driver’s insurance.
4. Don’t Be Surprised If Your Insurance Company Drops You After a Claim
Some people are shocked to find out their insurance company has dropped them following an accident claim.
Some insurance companies drop you for lying or committing an act that goes against your policy terms, such as a DUI.
Lying on your initial application could give your company the right to deny your claim and drop your policy for material misrepresentation.
5. Insurance Companies Typically Undervalue Claims
Insurance companies are for-profit companies. Their main goal is to reduce their exposure and minimize financial payouts.
Insurers frequently undervalue claims to save money, especially when it comes to auto insurance liability claims.
The same goes for collision coverage claims under your own policy. Insurance companies don’t want you to know that you can negotiate claims, even for collision coverage.
Do not settle for the first offer an insurance adjuster extends to you. You can always negotiate for a higher settlement amount.
Contact Fob James Law Firm
If you need assistance pursuing a car accident claim in Alabama, let the Fob James Law Firm assist you.
We have years of experience helping injured victims like you. We understand how frustrating the legal process can be, especially if you don’t know how to negotiate with an insurance adjuster.