The point of having insurance coverage is knowing you’ve got financial protection if you’re involved in a car wreck or if your vehicle is otherwise damaged. After an incident, you call your provider and you’re told to file an insurance claim. If you’ve never filed one before, you’ve probably got one question: What is an insurance claim?
This article will break down how an insurance claim works and how it impacts your rates. We’ll also give our take on the best car insurance companies to work with in the event of a claim.
In this article:
What Is An Insurance Claim?
An insurance claim is a formal compensation request for damages covered by an active insurance policy. Different types of insurance ranging from life insurance to medical insurance, homeowners insurance, and auto insurance require policyholders to file claims if they want financial reimbursement.
The type of claim you file will depend on who is at fault and the circumstances of the incident will dictate what policy covers your financial loss. If your new car is totaled in an accident, you’d likely see a payout from your collision coverage and gap coverage policies. If you were injured in an accident, the payout would come from your personal injury coverage.
One thing to remember is that filing an insurance claim will likely affect your car insurance rates when it comes time to renew – generally in the form of a higher premium.
What Is The Auto Insurance Claims Process?
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