Muhabirizbiz Rotating Header Image

Claims

Avoid High Auto Insurance Claims

May 3rd, 2010
by admin.
No comments yet

You might think that whatever make or model of car you have, auto insurance claims will be similar – and therefore, so will premiums. We all expect to pay more to insure a $200,000 Lamborghini than an ordinary Chevy or Ford sedan because parts are expensive, the car is likely to get stolen, and you are more likely to have an accident driving it fast. But surely the cost on insuring one 4.0 liter four-door sedan is the same as another? Not so. Even among ordinary cars and suvs, all autos are not equal when it comes to auto insurance claims.
The cost of insurance depends on many things such as:
- The likelihood of you having an accident – suvs that do not handle well will generally get a poor rating compared with modern sedans
- The level of injury you are likely to get in an accident – some cars are much better than others
- The cost of repairing the vehicles
The liability cost varies from model to model
These factors are taken into account along with auto insurance claims when the premiujms are set by insurers. So which are the autos to avoid, and which are good? You might expect imports to cost more to insure than cars made in the USA. Not necessarily. For example, Audi and BMW are generally low on the risk of liability in an accident, but the Audi S4 and TT and all BMWs are expensive to repair. Not too many surprises here. Generally, Chryslers are no so good on liability costs, and the Chevy Cobalt, Colorado and Silverado 3500 are pretty bad. The Ford Mustang is also bad, and the Focus and F350 are not good either.
Among the Japanese, Mazda does not rate highly, and Honda generally rates well, but its Ridgeline truck is not so hot. Toyota ranks highly, although the Prius, Tacoma and Tunda are expensive to repair. So you can see that it is not safe to rely on a certain maker, and assume that all its models rate highly.
Check how auto insurance claims affect the cost of insurance
Therefore, before you buy an auto, check out its ranking for crash and repair damage. Actually, the easiest way to do that is get some quotes from leading insurers, as auto insurance claims are taken into account in deciding the premiums they charge. This way you will be able to find what you need to buy a good price.
What you want here is to get all the quotes for the autos you are thinking of buying at one place. I have found that that best place to do this is at a site where you just key in the details, and up come quotes from many insurers. This solves two problems – you find which is the best auto, and which company offers the best price.

John Hartley has been writing about cars and the auto industry for many years and you can discover how to compare auto insurance rates and get the best rates at Auto Insurance.

Insurance Companies Play Hardball With Minor Car Accident Claims

Mar 12th, 2010
by admin.
1 comment

Insurance companies are making it tougher and tougher to collect medical costs incurred due to minor car crashes. According to a recent 18-month investigation conducted by CNN, you could be in the fight of your life if you’re trying to get an auto insurance company to pay medical costs you incur due to an auto accident, even though the accident was not your fault.
The article states that this type of “insurance hardball” particularly happens in relatively minor accidents such as fender benders where there is no injury that may be seen by the naked eye or established with an X-ray.
This insurance-company’s- “play-tough” trend is apparently a recent one, a strategy adopted and religiously enforced by the nation’s two largest insurance companies, State farm and Allstate. According to the CNN investigation, the result of such a strategy has been extremely profitable for the insurance companies, but has hurt consumers significantly. People end up getting dragged through the court system over fender bender claims, but no one sees any benefit such as reduced premiums. In fact, the dirty little secret of the insurance industry for the last 15 years has been this – they’re paying out much less for minor auto accidents, their profits are soaring as are your premiums. Of course, for them, it’s a winning formula.
CNN’s investigative team reportedly reviewed more than 6,000 company documents and court records and conducted interviews with numerous people including former insurance company insiders, accident victims and other experts. This is what they learned. If you challenge an insurer after a car accident and refuse to accept what the insurance company offers you, even if you are insulted by it – you will be left with little option but to go to court and be dragged through a complex, expensive and slow system.
Why is it that fighting an insurance company is not beneficial to a consumer? Because it takes up so much time and so much money. You can’t really turn to a personal injury lawyer because the experienced ones refuse to take on these cases. They know that the payoff for their client and the law firm is to low to make it worth taking up the cause. The law firm makes no money and the client is dissatisfied with the recovery the law firm got for them. It is a now win situation for the lawyers. It is simply not worth it for them to be involved.
Insurance company employees at Allstate were reportedly instructed to get rid of claims quickly by offering a pittance to accident victims – in some cases, amounts as low as $50. The injured person could take it or leave it or sue. And then the insurance companies complain about the volume of lawsuits.
CNN talked to two victims who experience this first-hand. Roxanne Martinez of Santa Fe suffered neck and back injuries when she was sideswiped by a driver insured by Allstate. After three years of back-and-forth, the company offered her $15,000, barely half of what she needed to cover lost income and pay medical bills. She took it to court and four years after the accident, a jury awarded her $167,000 plus interest.
But an Indiana woman, Ann Taylor, was not so lucky. Taylor suffered a herniated disc and muscle tears after she was rear-ended by a State Farm insured. Her bills and lost wages totaled nearly $15,000. But how much did State Farm offer her? $2,000. She was insulted and she sued, but the jury returned with an award of only $1,500 because the insurance company’s attorney showed them an enlarged picture of Taylor’s car after the accident, in which the vehicle had a small dent. So jurors said they thought Taylor was only trying to get more money out of the insurance company.
Experts say this strategy was devised to boost profit for the insurance companies in the mid-1990s with the help of a consultant. Those documents obtained by CNN recommend that insurance companies put on their boxing gloves when it comes to soft-tissue injuries in minor crashes. Their strategy outlines three D’s – denying a claim, delaying settlement of a claim and defending against the claim in court. Other experts say that this strategy helped insurance companies weed out so-called victim’s attorneys “who make a living off auto accident victims.” They argue that lawyers are upset about insurance companies playing hardball with the public because they fear that “the gravy train is over.” The insurance companies did not mention how their tactics were unfair to the innocent auto accident victim; they just blamed everything on the personal injury attorneys.
The party that really suffers in a minor injury crash is the average driver, the guy who is not ready financially to spend thousands at a given time to handle medical expenses for issues such as chiropractic work, which is not covered under many health plans or to be off work for a week or more. It is the average consumer who suffers as a result of this profit-mongering strategy adopted by insurance companies. It is these companies that stand to profit millions by not paying what is due to innocent, injured auto accident victims and then worsening the situation by increasing premiums.
The truth is that a minor car accident can cause a significant injury. This is especially so to seniors and people with preexisting conditions… We’ve had clients who suffered severe back injuries in a moderate rear-end accidents. Yes, many of them were elderly but aren’t they entitled to safe passage on our highways? Aren’t they entitled to compensation for the damage done, regardless of their age? Yes, many of the others are people with preexisting conditions, especially “degenerative disc disease”, a medical term for the wearing out of your spin through age.
We have seen people in the forties who are as fit as can be get into a small or moderate rear end collision and have serous neck and back issues. The insurance company claims it is a preexisting condition, “degenerative disc disease” and they refuse to pay. In these cases it is true that the “degenerative disc disease” was present before the accident. What wasn’t there before the accident was the pain and discomfort. The “degenerative disc disease” was asymptomatic; meaning it wasn’t hurting or causing any problems. The accident caused the degenerative disc disease – to become symptomatic, in other words, painful and in some cases debilitating.
Just because you are over 40 years-old does not make you fair game for a spinal injury or for an insurance company rip-off.
There are some steps you could take to make sure you are protected or covered if you get involved in an auto accident – major or minor. The first step, if you are able to do so after an accident, is to get insurance information, name and address of the parties involved in the crash and any witnesses. Also, take as many pictures as possible of the site even if it’s on your cell phone. Finally, get a thorough check-up. Remember that symptoms could surface after several days up to a year or more.
We have recommended to a significant number of people to just take the negligent driver to small claims court. Bypass the insurance company altogether. Bring the traffic collision report and your medical records to court along with any witnesses you have to your accident and the difficulties you have suffered since and let a judge decide. The negligent driver’s insurance company will pay the judgment and neither of the parties can be represented by an attorney.
Small claims court is quick and easy. It is much quicker than haggling with an insurance adjuster for months. The people who we have assisting in their preparation for their small claims court hearing have generally done very well compared to the insurance company offer. And the insurance company hates it.

John Bisnar is a partner at Newport Beach Personal Injury Law Firm Bisnar Chase. The Bisnar Chase law firm has dedicated their practice to victims of serious injuries due to defective products, negligence and malpractice.

Visit the main website at http://www.bestattorney.com or call 888-265-0161

Overcoming Big Insurer Excuses for Not Paying Claims

Mar 12th, 2010
by admin.
No comments yet

To combat fraud, many insurance companies are getting tougher on claims submitted by consumers.
But while some insurers delay payment to raise justifiable questions about claims, others drag their feet or deny payment for no apparent reason.
Here are the most common excuses insurance companies give when limiting or denying auto, home and health insurance claims – and the best ways to fight back…
AUTO INSURANCE
*”Your car isn’t worth as much as you say it is.” Insurance companies base their car-value assumptions on industry data that is similar to the information found in Kelly Blue Book. Keep in mind that Kelly Blue Book provides only average values of vehicles and that individual cars can be worth significantly more or less, depending on their condition and included extras.
Examples: Your car may have been garaged … have low mileage … or have expensive options, such as a sunroof or a V8 engine.
To support your claim for higher reimbursement: Check the classified ads in your local paper. If you find a half dozen cars that are similar to yours selling for more than the value listed in Kelly Blue Book, collect as much data as you can and send it to your insurer. Your insurer may relent.
*”Your car can be repaired for a lot less.” Some insurers set out to reduce all claims payments by a set percentage, even when the amounts are legitimate. Of course, most insurers won’t say this openly. Instead, the company might say that the $3,500 estimate you received is too high and that your car can be repaired for only $2,500.
Helpful: Don’t be intimidated. If you visit three repair shops, and the lowest bid was $3,500, insist that your insurer pay the claim in full. And don’t be pushed into using a cheap repair shop chosen by the insurer. I’ve never seen a policy that requires policyholders to go to a particular repair shop.
If your insurer still balks, say you’ll turn the matter over to your attorney. This may make the insurer pay up. If the difference between you and your insurer is a few thousand dollars, it will cost the company more to hire a lawyer than to pay you off.
HOMEONVNEWS INSURANCE
*”The problem cited in the claim is due to previous damage or normal wear and tear.” This is a favorite ploy of insurers that want to avoid paying up.
Solution: Challenge the company to prove that it does not cover these claims. Ask where in the policy it says so. Also, ask for proof it was “wear and tear” or previous damage. Insurance policies are written by the insurance company. If the language they rely upon is vague or ambiguous, you can collect – courts hold that ambiguity is always against the insurance company.
Example: A couple from Texas had their roof and window air conditioner damaged by a hailstorm. The company’s adjuster acknowledged that the air conditioner had been hurt by hail but insisted the hail hadn’t damaged the already old roof.
The couple canvassed their neighbors and found that other families’ insurers had paid for new roofs. The couple called the insurer with the information. The insurer then reversed itself, knowing that its policy language was the same as that of the other insurance companies that paid.
Under the typical homeowner’s policy, you are entitled to the full cost of repairing or replacing a damaged roof, even if the roof is old.
*”You may fix or replace the damage for less than you claim.” Some insurers will use this line as a trial balloon to see how low it can cut a claims payout before you complain. As long as you have a replacement policy and can show that it is impossible to replace an item for the amount the insurer is offering, stick to your guns.
*”We’re delaying payment because the cause of the claim is suspicious.” It’s bad enough your house was damaged by fire, but now the insurer is holding up payment because it has questions about the fire’s cause.
It’s one thing if payment is temporarily delayed because of an investigation to rule out arson. But if arson is suspected, the fire department usually conducts its own inquiry.
If the fire department hasn’t found it necessary to check the origin of the fire, ask the company directly if it is accusing you of arson.
If the answer is no, tell the insurer you expect the money to be forthcoming promptly or you will refer the matter to your attorney. If the answer is yes, call your lawyer immediately.
Important: Don’t worry if you inadvertently caused the fire. People cause fires every year by falling asleep in bed while they’re smoking, and many companies pay up anyway.
*”No receipts, no coverage”. Ideally, it’s best to have a written inventory of everything in your house.
But if you neglected to follow through on this chore, don’t despair. Homeowner’s policies don’t require that you have receipts for damaged or stolen items, only that you show some proof of what you owned.
Helpful: Go through family photos, looking for pictures that show the items. You can also ask relatives and friends to check their photos for pictures that show people grouped around specific furniture and paintings.
Also, get sworn statements from friends and relatives and from merchants who sold you the items, attesting to the existence of those items.
HEALTH INSURANCE
*”We won’t pay because this treatment isn’t medically necessary.” This is particularly troublesome with certain HMOs, which can be very tightfisted about what procedures they will cover.
Helpful: Put pressure on the insurer, starting with your doctor. Also, contact your employer’s benefits department, and then call the insurer. If this doesn’t work, say you’ll contact your state insurance department or the media.
*”This treatment isn’t covered because it’s experimental.” The problem is that policies can be ambiguous about which treatments are considered experimental and which are considered standard.
Helpful: Enlist the help of your physician in defending treatments.
Example: One insurer recently refused to pay for a migraine sufferer’s stay at the Mayo Clinic because it said the treatment she was given was experimental.
Her doctor referred to his medical school textbooks, which described the treatment he ordered as “classic.” He also found that in 49 other states, the treatment was considered routine.
The insurer reversed its decision.
*”We’re not paying the entire bill because your doctor charges too much.” Insurers balk at paying bills that exceed the “usual and customary” fees for the service in an area. The problem is determining what is usual and customary in your region because insurers are notoriously closemouthed about this.
Helpful: Call your doctor’s office, and ask the billing manager how much other insurance companies have paid for the same procedure.
Also find out whether your doctor did multiple procedures but billed you as if it was just a single one. Clarifying the bill can often lead to a larger payment from the insurance company.

Ranju is an assistant of Carson Danfield, is an “Under the Radar” Internet Entrepreneur who’s been quietly selling various products for the last 8 years.

Want to learn more about Overcoming Big Insurer Excuses
for Not Paying Claims? Be sure to visit http://info5000.com/INSURANCE/

Claims & your Insurance Rate

Feb 24th, 2010
by admin.
No comments yet

Whether you have a $1,500 fender bender or you write off a Bentley, it doesn’t matter. Either way, if you’re considered to be at-fault, or partially at-fault, your rate increase will be based on the fact that you caused an accident, not on the amount of the claim. Many drivers make small claims of under $1,500 and end up paying thousands of dollars for it in insurance premiums. Any reported accident, even if there was no damage at all, stays on your insurance record for six long years, seriously impacting your insurance rates.

Do lower insurance rates mean poor service, disappointment and dissatisfaction? NO. Auto insurance policies are identical, word for word. Drivers with high insurance rates DO NOT receive extra coverage or more value. All standard insurance companies report that their claims satisfaction levels are between 75% to 85%. You’ll never know if you’re going to have a claims problem, until you have it, regardless which insurance company you’re with or how much you paid for your insurance.

Claims History Report: When you receive an online quote from a site such as InsuranceHotline.com, you are given access to your Claims History Report. This report shows all your claims since you were first licensed. Like your credit history report, it is good for you to periodically check this report to be sure that it is completely accurate. Your insurance rate depends on it!

Accident Forgiveness

Many insurance companies throughout Canada and the US use the term “Accident Forgiveness” to attract new business. Be careful, as it does not necessarily mean your insurance company will forgive you for having an accident.

In Canada, if your insurance company offers “Accident Forgiveness” it means that if you have an at-fault accident your “star rating” drops. When your rating drops, your rates increase.

The accident also appears on your insurance claims record and will count against you for six years. The term “Accident Forgiveness” would more accurately be called “Falling Star”.

To determine the true definition of “Accident Forgiveness”, ask your insurance representative the following questions:

1. Will the accident go on my claims record?

2. Will my rate increase on renewal?

3. Will my preferred “Star Rating” drop?

If “yes” is the answer to all these questions, ask your rep to point out where, exactly, the forgiveness is.

Claims Protection

Claims protection keeps your insurance rate from increasing upon renewal, after an at-fault accident. The accident will, however, be recorded on your driver’s history.

The claims protection is removed after a claim. A second accident would not have this protection.

Further accidents or a combination of claims and tickets for driving infractions could result in the non-renewal of your policy. In some cases, claims protection will entitle the policyholder to an extra at-fault claim before the insurer will refuse to renew the policy.

Most insurers will sell drivers who have been driving for 5 years or more accident free claims protection. If you qualify, buy it. It is like buying insurance to keep your insurance premiums low. The cost is usually around $35 to $50 dollars a year. But before you do that, make sure you’re with the insurance company that has the best rate. Otherwise, all you’ll be doing is paying more money to protect a lousy rate.

Repair Shops

After your accident, your insurance company may suggest where to take your car to get repaired. The advantage of using one of your insurance companies preferred repair shops is that they guarantee the repairs.

Your rights: In spite of which shop your insurance company suggests, you ultimately have the right to choose the place you wish to get your vehicle repaired. This is the law. The advantage of using a repair shop of your choice is that they can act as a mediator if you’re unhappy with the adjuster’s assessment of what needs to be repaired.

Repair job: Before you authorize any repairs, make sure you show your insurance company the estimate. Insurance companies will restore your vehicle to the same condition that it was in prior to the accident. Previous damage is not covered. A fraudulent attempt to get the insurance company to pay for damage unrelated to the accident could cause them to deny payment of the true cost of your claim. Adjusters have high tech ways of determining previous damage not caused by the accident, and you could be charged with fraud.

Original equipment: As a rule, if the vehicle is less than two years old, you should get the Original Equipment Manufacturer (OEM) part. Older vehicles will be repaired using after-market parts or used parts. The OEM part comes from the original manufacturer; the after-market part is produced by a separate company. It’s like getting a brand name versus a no name product. Once the vehicle is fixed, by law you will get a minimum warranty of three months, or 5,000 km, whichever comes first.

Generally, you should receive a 2-year warranty. You should investigate this when you are calling around for estimates.

Before driving away, check the appearance of the repaired area close up and at a distance, examine the paint for color match, texture and over-spray, take a test drive to check mechanical repairs, and check that the vehicle is clean. If you are not satisfied, mention your concerns immediately.

In most vehicles, the paint will not be an issue unless it is an older vehicle, as the original color may have faded over time.

Value of your car after an accident: Many people feel that the vehicle will never drive the same if it sustains heavy damage. This is now a myth. Ten years ago, this may have been true, but with the technology today, frames and other parts can be repaired to their original condition.

However, insurance companies in Canada do not reimburse you for the “loss of the value” to your vehicle because of an accident. Insurance companies pay for the repairs only. If you decide to sell or trade in your car, there may be a depreciated value because it had been in an accident. Some dealerships minus $1,500 to $2,000 from the value because of a collision.

In the US however, some insurance companies do take the new value of the vehicle into account when settling a claim. The best solution is to have the garage where you are most likely to purchase a new vehicle do the repair work. Let them negotiate with the insurance adjuster to make the point that the car they repaired is not worth as much as the car before the repairs.

Insurance adjuster: Not all claims adjusters are created equal. If you’re unhappy with your adjuster, there are options available to you. You can speak with different levels in the insurance company’s claims department. You may also speak with the company’s Ombudsman. If you still are unhappy with the way your claim is being dealt with, you can contact your province or state’s regulatory body on insurance and speak with their Ombudsman.

Rental vehicle: While your car is in the shop, you’ll probably need a rental vehicle. This is covered under an insurance endorsement called “Loss Of Use”. The price of the endorsement is around $20 and if you do not already have it, get it! If you’re at-fault for the accident, your rental vehicle costs will be covered. If you are 100% not at-fault and do not have this endorsement, you may still receive it under the “Direct Compensation” part of the insurance policy, subject to the policy restrictions and limits.

Insurance rates: The fear of skyrocketing insurance has many people paying for the damages out of their own pocket. Many body shops now ask whether the repairs are going to be covered through insurance or out of your own pocket, as some repair shops now offer payment plans.

The purpose of insurance is to put you back in the place you were in before the loss. Unfortunately, that doesn’t include your insurance rate.

Rate comparison: Paying insurance rates for one accident for two years can cost more than your car is worth. So be careful and do the math. Maybe you don’t need collision coverage, saving you insurance dollars.

Here’s an example of a 1997 Chrysler Intrepid, driven in a metropolitan area, showing a spread of 30 insurance company rates, lowest to highest. To purchase this car would cost around $3,000. The amount for insurance after one accident, which affects your rate for 6 years, more than doubles the cost to purchase the car.

Profile Lowest Highest

Clean $1,463 $2,629

1 accident $2,634 $8,212

2 accidents $5,627 $8,427

Lee Romanov is the founder and president of The InsuranceHotline.com, since 1994.

InsuranceHotline.com provides a rate comparison service for auto, home, life and commercial insurance via the internet, now processing over 3,000 quotes a day, internationally. Get Instant Auto & Car Insurance Quotes here.

Car Insurance and Your Claims: They MUST Pay!

Feb 18th, 2010
by admin.
No comments yet

To further complicate matters, even if a loss is covered, the policy most likely includes a deductible as well as coverage limits. Depending on the nature of the loss, multiple insurance companies may be involved. For example, if a storm strikes and you have both wind and flood damage, you may have to file a claim with your homeowners insurance for the wind damage and another with the national flood insurance program (if you have flood insurance) for the water damage.Depending on where you live, your deductible may be higher under certain circumstances. For example, in Florida, your insurance deductible for hurricane damage is much higher than if your home was burglarized. So, will your local insurance company pay or won’t they? Look at it this way, insurance companies DON’T want to pay. They are in business to generate profits and will need to be convinced BY YOU that the claim should be paid. The burden of proof lies on you, the homeowner. This means that you will need to prove your case and do it well. The better prepared and more organized you are, the better.

Start with documentation. You may need to take dozens of photos and provide your direct insurance agent with detailed estimates to counter against the insurance company’s original settlement offer. You may need to demand to see how the agent depreciated your property and negotiate a more reasonable method. While your homeowner’s insurance policy is a contract, the claims process does provide room for negotiations with auto insurance company (more information on best negotiation tactics in How to Contact with Auto Insurance Company? article).

Your best bet is to be prepared for a fight. Your tools in this battle include a detailed home inventory, digital photos and video documenting the damage, estimates from local contractors, and a willingness to demand a better offer. You don’t have to do this alone. In fact, many contractors are willing to be present during the insurance adjuster’s visit to help point out damage that the adjuster might have otherwise ignored. In addition, public home or auto insurance adjusters act as advocates for the homeowner and work on your behalf to negotiate a higher settlement offer.Arm yourself with knowledge, documentation, and real-world estimates while also considering professional representation and you’ll be better equipped to answer the question, “Will they pay for it?”

Willie James is a car insurance expert of Online Car Insurance News Review agency. His job is to analyze american auto insurance information and publish different reviews for Federal Insurance Bureu (FIB) in Moscow, Russia. His hobby is styding a plants and smoking mixes Spice Spike and exotic entheogens.