What Rights Do I Have as a Policyholder?

One of the most common questions that auto insurance policyholders have involves their rights with the insurer. Many people want to know what kind of rights they have with their insurance company and how they can make use of them. Unfortunately, it’s impossible to tell exactly what rights each individual has because insurance policies can vary wildly in this area. Some auto insurance policies certainly offer up more rights and guarantees than others, but they typically make up for it with higher premiums. Here’s a look at some of the most common rights that many auto insurance providers guarantee their policyholders and what they mean to you:

Know Your Rights

• Probably the most important right of a policyholder is their right to receive the benefits of their insurance contract, as long as the premiums are paid in full and on time. It’s the main reason people get insurance, so that they may reap the benefits of their policy should they need to make a claim. Without this right, insurance providers could simply refuse to pay out settlements to claims. Valid and legitimate claims should be paid to policyholders in accordance to the insurance contract they have signed.
• Another important right that policyholders have is the right to fast and cost-effective methods for resolving claims made with their insurance company. That means your auto insurance provider should be able to quickly resolve any claims you submit and do it at an affordable price. This protects you from price gouging and long delays in the insurance claims process.
• If your vehicle has been damaged and is covered under your insurance policy, you may have the right to decide who will be doing the repairs. This is a right that has become increasingly limited. Today, many insurance companies limit the consumer’s options for getting repairs, requiring that they get their vehicle repaired at an auto shop that falls under their approved network. That’s why it’s so important to ask questions and read the fine print when you take out an auto insurance policy.
• After submitting a claim to your insurance company, your insurer will offer you a settlement to resolve the claim. As you might expect, consumers and insurers don’t always see eye to eye on these settlements. If you don’t agree with the value of your settlement, you have the right to the appraisal process with most insurers. During this time, an appraiser of your choosing and an appraiser of the insurer’s choosing will work together to decide the value of your settlement. Of course, you only have the right to the appraisal in matters with your own insurance company, not with another party’s insurer.