Can my insurance company require me to use certain types of auto repair parts?

Your insurance company can't require you to use only certain kinds of auto repair parts. However, if the insurance company's rates are based on a certain type of part and you want something different, it can ask you to pay the difference if the part you want is more expensive.

The parts most frequently damaged in auto accidents are "crash parts". These are the sheet metal pieces that cover the engine and frame of the car. There are two sources for crash parts: auto manufacturers, who sell them under their own names, also known as original-equipment manufacturers (OEMs), and generic or aftermarket crash parts suppliers. Studies have demonstrated that these crash parts do not affect the safety of the car. The development of a market in generic parts has brought prices for car replacement parts down and can help consumers save money.

In general, if generic parts have been ordered for the repair of your car, this information must be disclosed. The car repair order should state that the parts are not from the original manufacturer and the warranty may be different. Many generic parts are made at the same factories as OEM parts, and in fact very few OEM parts are actually made by car makers.

Insurance companies that use generic parts guarantee the parts they use. If the part doesn't fit properly, the insurance company will generally put on an OEM part at no extra cost.

Some auto insurance companies offer their policyholders a choice between OEM and generic repair parts as part of an endorsement (addition to the policy that changes its terms and conditions) that includes other choices as well. Some always specify OEM parts for repairs and some use OEM parts for repairing recent model cars. A few states require insurance companies to offer generic parts when they exist and some may require OEM parts to be used.

Ask your insurance agent about your state and your insurance company's claim settlement guidelines so that you'll know what to expect if your car has to be repaired after an accident.

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How are the value of my car and the cost of repair determined?

There are several standard guidelines for determining the value of your car for insurance purposes. You and your insurer can refer to one of the books that list the depreciated value of all new and used cars. One of these books is published by the National Association of Automobile Dealers another is published by Kelley Blue Book.

When you file your claim, your insurance company will refer you to a claims adjuster. The adjuster will verify the loss and determine what it will cost to repair the car. The adjuster’s estimate can serve as a benchmark to which to compare your own mechanic’s estimate.

No good adjuster or insurance company will expect you to sign an agreement accepting the insurer’s estimate as the total claim payment until you’ve established, to your own satisfaction, that it will cover the cost of repair. The insurer will expect you to get your own estimate from your mechanic, garage or car dealer. Don’t allow yourself to feel pressured into accepting the insurer’s estimate of repair costs without getting at least one estimate of your own.

Your insurance company can’t require you to have repairs done at a particular shop. But they can insist that you get more than one estimate for the work to be done on your car. Just as you want to make sure that your car is adequately repaired, the insurer wants to make sure it doesn’t pay a grossly inflated repair bill.

Don’t be surprised if your insurance company opts to pay for the lowest bid. You don’t have to accept that bid if you believe the low bid won’t adequately repair your car. Don’t hesitate to argue with the adjuster if you really believe his repair estimate is too low based on what your mechanic has told you.

One factor that could reduce the amount of your claim for a repair job is what insurance companies call betterment. If your old car is repaired with brand-new parts, your insurer may argue that the repairs have actually enhanced the car’s value and therefore they can legitimately reduce your claim by the difference between a used part and a new one.

It is up to your insurer to decide whether to pay for repairing your car or to declare it a total loss and pay you its book value. Most standard auto policies will not pay to repair a vehicle if the repairs cost more than the cash value assigned to the car. There won’t be any dispute about whether to repair the car if it was completely totaled. But you may argue about what the pieces of the car were worth when they were assembled as a car. For you to get a settlement higher than the book value of your car’s make and model, you will have to submit evidence such as mileage records, service history and affidavits from mechanics to show that your car was worth more. You’re entitled to the market price of the car you just lost. You shouldn’t get more or less than what you are due.

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How do I file a claim?

To file a claim, follow these steps:


Call your insurance agent as soon as possible, regardless of who is at fault. Find out whether you're covered for this loss. Even if the accident appears minor, it is important that you let your insurance company know about the incident.


Ask your agent or company representative how to proceed and what forms or documents are needed to support your claim. Your insurance company will require a “proof of claim” form and, if there is one, a copy of the police report. Increasingly, companies allow you to monitor the progress of your claim on their web site.


Supply the information your insurer requests. Fill out the claim form carefully. Keep good records. Get the names and phone numbers of everyone you speak with and copies of any bills related to the accident.


Ask your insurance agent or company representative the following:



Does my policy contain a time limit for filing claims and submitting bills?

Is there a time limit for resolving claims disputes?

If I need to submit additional information, is there a time limit?

When can I expect the insurance company to contact me?

Do I need to get repair estimates for the damage to my car?

Will my policy pay for a rental car while my car is being repaired? If so, how much?

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Will my insurance cover a rental car after an accident?

Many drivers don't think about their insurance coverage until after they have an accident and call their insurance company to file a claim to help pay for car repairs, a rental car and other expenses.

Unfortunately, many insured drivers are surprised to find out that their auto insurance does not automatically cover the cost of a replacement rental car after an accident. Since the average car is in the repair shop for two weeks after an accident, it can cost as much as $500 to rent a replacement car. But, some insured drivers pay little or nothing to rent a car because of an inexpensive but often overlooked option known as rental reimbursement.

Rental reimbursement coverage is available for only $1 or $2 a month with almost every auto insurance policy, but it is bypassed frequently by those who believe they will not have a car accident or those shopping only for the lowest cost premium. The cost of a rental replacement car adds up fast, so even if you don't have an accident for eight or nine years, the coverage pays for itself when you need it most.

Sometimes working out the details of a claim with the auto insurance company can take time. Even if the accident is the other driver's fault, you may have to wait several days or longer to get the other insurance company to agree to pay for a rental car. With your own coverage, there is no waiting.

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What information do I need to give to my agent or company?

Your agent will ask you what make and model cars you own, roughly how many miles you drive each year, and what kind of liability coverage you will need. The agent will also want to know how many people drive the cars, how old the drivers are, where you live, and driving records of each household member.

The agent will then ask more detailed questions about your cars, such as their Vehicle Identification Numbers (VIN), whether they have passive restraint systems or air bags, anti-lock brakes or anti-theft devices. If you already have another insurance policy with the company for home or life insurance, you might receive a discount on your auto policy. You should also mention if you or other drivers in your household have completed safe-driving courses and if student drivers in your home are getting good grades—both of these may qualify you for discounts on your auto policy.

Once the agent has assembled all of the information, he or she will quote you a premium. The premium will depend on all the factors above and on the deductibles you choose.

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What information do I need to give to my agent or company?

Your agent will ask you what make and model cars you own, roughly how many miles you drive each year, and what kind of liability coverage you will need. The agent will also want to know how many people drive the cars, how old the drivers are, where you live, and driving records of each household member.

The agent will then ask more detailed questions about your cars, such as their Vehicle Identification Numbers (VIN), whether they have passive restraint systems or air bags, anti-lock brakes or anti-theft devices. If you already have another insurance policy with the company for home or life insurance, you might receive a discount on your auto policy. You should also mention if you or other drivers in your household have completed safe-driving courses and if student drivers in your home are getting good grades—both of these may qualify you for discounts on your auto policy.

Once the agent has assembled all of the information, he or she will quote you a premium. The premium will depend on all the factors above and on the deductibles you choose.

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AUTO INSURANCE INFORMATION

What determines the price of my policy?
There are many factors that influence the price you pay for auto insurance. The average American driver spends about $850 a year. Your premium may be higher or lower, depending on:


Your driving record.
The better your record, the lower your premium. If you've had accidents or serious traffic violations, you will pay more than if you have a clean driving record. You may also pay more if you haven't been insured for a number of years.



The number of miles you drive each year.
The more miles you drive, the more chance for accidents. If you drive a lower than average number of miles per year, less than 10,000, you will pay less. For instance, some companies will give discounts to policyholders who carpool.



Where you live.
Insurance companies look at local trends, such as the number of accidents, car thefts and lawsuits, as well as the cost of medical care and car repair.



Your age.
In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. So insurers generally charge more if teenagers or young people below age 25 drive your car.



The car you drive.
Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car, the cost of repairs, and the overall safety record of the car.


The amount of coverage.
Of course, like anything else, the more coverage you have, the more you pay. However, you may qualify for discounts.

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How do I choose an insurance company?

There are many insurance companies, so choosing between them can be a challenge. Here are the main points to keep in mind when selecting an insurance company:


Licensing
Not every company is licensed to operate in each state. As a general rule, you should buy from a company licensed in your state, because then can you rely on your state insurance department to help if there’s a problem. To find out which companies are licensed in your state, contact the state insurance department.


Price
Many companies sell insurance policies and prices vary greatly from one to another, so it really pays to shop around. Get at least three price quotes from companies, agents and from the Internet. Your state insurance department may publish a guide that shows what insurers charge for different policies in various parts of your state.


Financial Solidity
You buy insurance to protect you financially and provide peace of mind. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.


Service
Your insurance company and its representatives should answer your questions and handle your claims fairly, efficiently and quickly. You can get a feel for whether this is the case by talking to other customers who have used a particular company or agent. You may also want to check a national claims database to see what complaint information it has on a company. Also, your state insurance department will be able to tell you if the insurance company you are considering doing business with had many consumer complaints about its service relative to the number of policies it sold.


Comfort
You should feel comfortable with your insurance purchase, whether you buy it from a local agent, directly from the company over the phone, or over the Internet. Make sure that the agent or company will be easy to reach if you have a question or need to file a claim.

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Is there a difference between cancellation and nonrenewal?

There is a big difference between an insurance company canceling a policy and choosing not to renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except when:

You fail to pay the premium

You have committed fraud or made serious misrepresentations on your application

Your driver's license has been revoked or suspended.
Nonrenewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Depending on the state you live in, your insurance company must give you a certain number of days notice and explain the reason for not renewing before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company’s consumer affairs division. If you don't get a satisfactory explanation, call your state insurance department.

The company may have decided to drop that particular line of insurance or to write fewer policies where you live, so the nonrenewal decision may not be because of something you did. On the other hand, if you did do something that raised the insurance company’s risk considerably, like driving drunk, the premium may rise or you may not have your policy renewed.

If your insurance company did not renew your policy, you will not necessarily be charged a higher premium at another insurance company.

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Top things that will affect your car insurance premium

Here are the top things that will affect how much money your car insurance is costing you:

Your driving record

If you have a bad driving record you are going to be putting out more money for your car insurance each month. The longer you go without having an accident the lower your car insurance rate will get.

Want to put more people on your policy?

Adding people to your car insurance policy can affect the amount of money that your car insurance costs you. If the other person has a bad driving record then you may find yourself having to pay their rates for your insurance.

Age

If you are young you could be facing higher car insurance rates as well. This is because you are not as experienced a driver and therefore you are seen as a higher risk. The same is true if you are a male. Men are riskier to insure than females and this means that you may have to pay more.

Get an alarm

If you get an alarm and you agree to use other anti theft devices you may be able to get a discount on your car insurance. Ask your car insurance agent what kinds of measures you could put in place that would allow them to give you a better deal on your car insurance.

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Why does your car insurance cost what it does?

The cost of car insurance doe not seem even a little bit fair these days does it? Nope. It seem so random, you will find that it differs from person to person, even if they drive the same car? How is that possible? Car insurance should cost the same for everyone right?

Wrong. Why should those with good clean driving records pay the same amount of money for serial crashers? We shouldn’t. It is those bad drivers that are driving (no pun intended) up the cost of car insurance. But that is just one of the factors that can affect how much you pay each month for your car insurance.

Car insurance is something that we all have to have if we want to drive on the road. Even if you live in a place where it is not required by law it is still a very good idea to get car insurance. Only car insurance will protect you if you get into a car accident. Accidents are called accident for a reason, no one plans to go out and get into one. If you are unlucky enough to get into one you will have the peace of mind knowing that you will not have to put out the money to get your car or the other car fixed. Good car insurance will even cover you if someone in one of the vehicles gets injured. Without car insurance you could find yourself getting sued for millions of dollars, do you have that kind of money to put out? We don't think so , that is why you need to get car insurance to take care of you

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Car Insurance - Section Home

Car Insurance typically called Auto Insurance protects the policy owner against financial damages in case of an accident. Accidents big and small happen each day right from a small stone hitting your windshield to a massive rollover which gives your car the status of being totaled. There are many components you need to understand about your Car Insurance and we try to bring as much information possible in this section.

The Car Insurance policy has three main types of coverage

Property Coverage - this helps pay for the damages to your vehicle and will cover if your car gets stolen
Medical Expense Coverage - When you are in an accident you need help paying the bills for the rehabilitation and treatment to your injuries. Along with it some policies provide lost wages and even funeral costs.
Liability Coverage - This helps with the medical and legal costs of a third party whom you have injured or whose property you have damaged.

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Insurance

There are two types of Insurance - Personal Insurance and Commercial Insurance. Personal Insurance are contracts that protect individuals and families from losses due to unexpected events. Commercial Insurance is purchased for businesses to protect their assets and various enterprises. The following index takes you to more specific sections or portals. Use our search feature to lookup any specific insurance topics, we would have covered what you wanted to know about.

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