Automobiles

7 Amazing Tips for a Better Car Insurance Claim-Settlement Process

Buying a new car has now become easier than ever, thanks to the easy car loan offers available in the market. As a matter of fact, protecting your car from any future damage is equally important. With increased traffic conditions and rash driving instances, having car insurance is a real savior. A car insurance policy not only acts as a safeguard, but it also covers any damage to your vehicle.

On February 23, 2019, over 300 cars were damaged in a fire outbreak at the Aero India 2019 in Bengaluru. Next day again, over 170 cars were destroyed in a fire incident in Porur, Chennai. Well, it is during such unfortunate events that having insurance comes handy.

However, before you get your car insurance claim settlement, you have to go through a process. Well, don’t worry! Follow these seven tips to make your car insurance claim-settlement process smooth.

1: Start Your Claim Process As Soon As Possible

In case, your car meets with an accident or has experienced some damage, you need to inform your car insurance provider about the event within 48 hours of the mishap. Make sure that you provide them with detailed information regarding the incident. Any forgotten detail (even if it is insignificant) can hinder your claim-settlement.

2: Record Every Minute Detail of the Event

Apart from informing your provider about the incident, you also need to have a written record of how, when and where the incident took place. Along with this, note the damage to your car and the injuries caused to the driver and passengers.

Preparing a strong report with all the details will help you get your favorable settlement amount. Also, attach proofs of the car damage, proof of injury (medical bills), and the police report. Having all the original documents handy makes the settlement process quick and easy.

3: Finalize Your Settlement Amount

Once the damage is recorded in writing, now it is time to calculate the loss you have incurred. This will include the damage to your car along with the injuries to the passengers. After you have come to a reasonable claim amount, prepare to get a settlement.

Attach all the requested details and documents in your claim request. You do not want to receive an amount lower than what you asked for (mainly because you missed out on some details).

4: Send Your Demand Letter

Next, draft a demand letter including your claim settlement amount to your insurance provider. The demand letter should have the following details:

  • Details of the incident
  • Details of car damage
  • Details of injuries to the passengers
  • Medical bills
  • Proof of loss of income due to leave from work (because of the incident)

The car repair cost and any long-term healthcare scenarios should be included in the demand letter along with essential proofs. While mentioning your settlement amount, it is highly advisable to ask for exactly what you need.

5: Analyze the First Offer & Push for a Reasonable Settlement

After submitting your claim request, your claim officer will offer you the first settlement. If the offered settlement amount is less than your demand and the reasons provided by your insurers are invalid (according to you), then you can push for a reasonable settlement. However, make sure you provide valid proofs supporting your claim amount. If the amount offered is satisfactory, then go ahead and accept it.

6: Ask For a Written Agreement

If the negotiation goes smoothly, ask your insurer to sign a written agreement. The agreement should state that the policy will cover the claim amount that both the parties have come in terms with. Also, ask your provider when the amount will be credited.

7: Seek Legal Advice If Negotiation Fails

If at all, you and your provider are unable to finalize the claim amount, then you should seek legal guidance. A lawyer will help you analyze the entire incident and get a claim settlement that best aligns with the terms of your policy.

The Bottom Line

Despite the tedious claim settlement process, it is mandatory to have a car insurance policy. In fact, insurance providers have made the process of applying for car insurance easy with online car insurance. So, why wait? Apply for car insurance from the comforts of your home today!