When it comes to protecting your car, you may choose auto insurance claims. The auto insurance claims process usually relatively straight forward. Besides, before applying this coverage to your car, it is better for you to know what types of auto insurance claims are. Here are the complete explanations about types of auto insurance claims you need to know.
What is an Auto Insurance Claim?
An insurance claim is simply where you ask your auto insurance company for compensating you in a car accident. This compensation is typically aiming for damages to your vehicles, including a total loss, as well as injuries you might have sustained.
Besides, it can also cover property damages that occurred during the accident. In another situation, you can also contact your insurance company to act on your behalf when an auto insurance claim is created against you.
What are the Main Types of Auto Insurance Claims?
Do you know? Auto insurance claims are able to be broken down in many ways. Even though there are certainly a number of subtypes, these following claims can typically be broken down into several major categories. Here are the types of auto insurance claims you should know.
Total Loss Claims
Your vehicle is deemed a total loss when the costs of the vehicle more to repair than its remaining value. Many states also have limits regarding the value of repairs. If your vehicle requires repairs that go over this limit, then your claim will be deemed a total loss.
The same service goes for a car that is lost or stolen. If the vehicle cannot to be recovered, it is also deemed a total loss. Your auto insurance provider has to follow certain statewide rules and regulations according to total loss claims, even though they can tweak the specific rules to their preferences.
Bodily Injury Claims
This one of the types of auto insurance claims covers a wide range of scenarios. The most common scenario is if you cause and are deemed at fault, for an accident that injured another person. It also covers their claim against you.
Besides, it is designed to help pay for their emergency, hospital, and also medical expenses. Bodily injury auto insurances sometimes cover the expenses of the injured person if they are injured too badly to go back to work or otherwise continue to receive their normal income.
Finally, bodily injury auto insurance as one of the types of auto insurance claims will help cover any legal fees which are associated with protecting yourself in court if a legal claim is made against you.
You need to remember that your own bodily injury coverage does not cover you meaning other than potential legal fees. It protects you by helping pay for the expenses of an injured person in an accident you caused.
If we flip the situation around to one where you get injured in a car accident that is the fault of someone else, the procedure will be different. In this case, you need to file a bodily injury claim against them. It is with their auto insurance provider.
Their bodily injury insurance claim coverage than will help pay for your emergency, medical, hospital, and related bills to the accidents. This coverage has a predetermined coverage limit, set by the auto insurance company ahead of time. For your information, most states now require drivers to carry with them bodily injury coverage.
Property Damage Claims
Sometimes, car accidents do not just cause damage to other vehicles on the road. But, they also often cause damage to surrounding property such as mailboxes, lawns, parked cars, homes, and many more. Thus, property damage claim comes. It is designed to help cover these damages to property.
Property damage claims are one of the types of auto insurance claims which work in two ways. This insurance claim helps cover any damages you cause in a car accident. Besides, it also protects you if your property is damaged in an accident that you are not even involved in.
Liability coverage is one of the types of auto insurance claims which are required in most US states as a legal requirement to drive a car. It may help cover damages for injuries and property damages to others in which you become legally responsible resulting from a covered accident.
In other words, when you are involved in a car accident and when it is concluded that the accident took place of your fault or negligence, this type of auto insurance claim will cover to your rescue.
By applying for this auto insurance, you can get benefits. This insurance covers the repair or the replacement cost of the damaged property or even a third party. It also covers the medical bills of the third party due to hospitalization or medical treatment.
Comprehensive insurance is one of the types of auto insurance claims that can provide an extra level of coverage in the instance of an accident involving another vehicle. This auto insurance may help pay for damage to your car due to incidents besides collisions, including vandalism, certain weather events, and accidents with animals.
This insurance also will include all kinds of risk factors that are related to your vehicle, passengers, driver, third party vehicle, third party vehicle passenger, and also third party property. It also covers the risk factors including weather damage, floods, fire, and theft. It can be said if this kind of insurance is complete and comprehensive.
Besides, comprehensive insurance is one of the types of auto insurance claims that will cover various aspects that are outside the purview of the collision of the vehicle. It can be bought as per your budget. Furthermore, you also can install anti-theft devices and other security enhancements gadgets to decrease the insurance premium quoted by the insurance carrier.
That’s all about the types of auto insurance claims you need to know before you go to apply the auto insurance to cover your vehicle. Make sure you choose the best type of auto insurance claim. It is better for you to consider which one of the types of auto insurance claims that suitable for your car and the budget you have.