Most Common Insurance Problems

You know what they say about insurance: Can’t live with it, but you can’t drive without it! That about sum it up?

Everyone has had their own problem experiences with auto insurance companies. The tales of car crashes that weren’t their fault, but which were chalked up to driver error. Anecdotes of massive damage resulting in a mere pittance in protection. Claims adjusters who act like the driver committed a felony by expecting their insurance company to actual fulfill their contractual obligations to protect your vehicle in the event of just such an accident.

But what are you to do if these scenarios happen to you? Wouldn’t it be better to know how you might remedy these situations, than to complain about them? Couldn’t agree more, and so that’s why AutoInsuranceRemedy.com has put together a list of common insurance problems or complaints, along with some suggestions of how to get remedy.

Claim Denied!

If you ever feel your insurance company has a wrongly denied a claim, know that they have a contractual and legal obligation to fairly and promptly settle your car accident insurance claim in good faith. You have certain rights under your policy and under state law. Here are some steps you can take to try to remedy the situation:

1. Write back to the insurance company to tell them where their mistake is and provide them with documentation to support your response.
2. Appeal your insurance company’s decision to the State Insurance Commissioner.
3. Contact an attorney who specializes in insurance to discuss your bad faith case. Often a letter from an attorney will motivate an insurance company to remedy the situation.
4. As a last resort, contact an insurance attorney and sue the insurance company for bad faith, breach of contract, or other violations of your state’s insurance code.

Oh, You Didn’t Want that Option?

Some insurance agents will slip in options that are very lucrative to their business or which many of their clients consider standard. And some states required that insurance companies provide you with certain coverages that are actually optional. In Colorado, for instance, your auto policy must include $5000 in personal medical coverage. But if you already have medical insurance, why double up coverage and pay for it twice on different policies? So, keep an eye out for such things: they increase the cost of your premiums. But if you don’t catch them up front, you will have to notify your insurance company in writing that you want to remove the coverage.

Why Pay Extra for Something That’s Standard?

You’ve heard it advertised like it was some amazing new thing: accident forgiveness. Gasp! Why, how kind of you! Well, maybe, if it weren’t for the fact that the majority of auto insurance companies, including the one making that claim, already won’t raise your rates after a single accident! So, why pay extra for what they already do in order to stay competitive with other insurance companies? Don’t fall for it unless they are also offering something that isn’t standard, such as lower deductibles or lower premiums after a number of years without an accident. Bottom line: Refuse to pay extra for something that is standard in your policy.

Sorry, But It Was Right There on Your Renewal

Would it surprise you to know that insurance companies often take advantage of renewal time to make more money from their customers? Well, it might come as a surprise, but those optionals that you wrote to them to remove from your coverage often reappear at renewal time. And if you’ve had a fender bender or a claim on glass coverage, don’t be surprised if that becomes the excuse to slyly raise your rates at renewal time. And if your company has introduced new discounts in order to draw new business, don’t expect them to apply to your policy automatically. Call them on it. And if they are resistant, tell them that your money is just as good at another insurance company that will give you a better rate.

Really? You Wanted a Higher Deductible?

When you buy car insurance, your collision and comprehensive coverage has a deductible that is the amount you pay out of your pocket for an accident. Well, some insurance companies set the deductible very low automatically if you don’t choose a higher level, say $250 instead of a less expensive $1000. Did that seem contradicting and confusing? See, if you have a low deductible, you actually pay a much high insurance premium, which benefits your insurer. So, pick up the phone and call your insurance company. Ask them what your premiums would be at different deductible levels and decide if you’d rather have that money in your savings account.

Play Them Against Their Competition

The real nut of the situation is that there are dozens of auto insurance companies to choose from and they all want your business. If your insurance company is playing games (or your insurance agent), then move on, folks. If you have encountered an honest mistake or an attempt on their part to over-insure you for your sake, call them on it. And if they don’t go your way, let them know that you are willing to be on your way to one of their competitors.