The Cost of an Accident!

Well let me take care of the disclaimers before I dive into some need to know points when filing a claim and dealing with adjusters. I don't know represent one specific insurance carrier or agency. Nor am I a Public Adjuster which can represent a private party or a specific company during the claim process. Any use of this information that I provide today is solely for the use of guidance and should not be used to interrupt a personal or company lines insurance policy, nor to support coverage in any manner of any existing policies that provided coverage in the past, present or that will provide coverage in the future.

Let me help you understand one key factor in filing a claim. A good adjuster will not speak when you are speaking. I say this for so many reasons because we are investigators be nature and we are listening for clues from the moment of first contact. Your natural conversation tells the story at all times. Adjusters are looking for clues in the simplest form of conversation. Also, we have heard your story in a different form at least 12 times a day, on average. I say this to say, that we review policy coverage more than the average insurance agent who might be slightly guilty of trying to sell policies instead of educate. Having said that, at anytime you purchase an auto policy (commercial or personal lines) your agent has a duty to explain each coverage and how it relates to what type of loss (accident) you may have. For example, your agent should be able to inform you as to how a deductible (first dollars spent) should apply and how it relates to a specific loss. You have Comprehensive, Collision, Rental Reimbursement, Tow and Lockout, and the list of names perils goes on. NEVER LET YOUR AGENT TELL YOU THAT YOU HAVE FULL COVERAGE WITHOUT EXPLAINING WHAT "FULL" COVERAGE IS AND HOW IT RELATES TO YOUR SPECIFIC POLICY. I cannot tell you how many times policyholders thought they had "full coverage" when calling in to find out to my disappointing voice that they cannot get a rental because their policy lacks the coverage. I won't dive too much into coverage specifics (that's what your agent is paid for) because there are so many policy versions out there and a policy can easily add or take away coverage, depending on the endorsement. This is important and why you should never listen to your friend or family relative tell you about what kind of coverage they have and what was done for them regarding a certain auto loss. It will be totally different from your loss because policy coverage could vary (even within the same carriers).

Jermaine's rule #1 when filing a claim: If you know the other party is at fault, do not file a claim under your policy. I have several reasons as to why I say this, so please forget what your agent for 20 years have told you. Trust me on this one! Yes, you pay auto insurance for a reason (I get it). However, in most cases your deductible cannot be waived unless you have a special provision within your policy, or until the other party's carrier assumes liability for the loss. So whatever your policy deductible is for a Collision loss, you are on the hook for paying it unless the other party assumes responsibility for the loss. If you don't want to deal with the hassle, then file the claim under your policy. Most Adjusters will file a claim with the other party on your behalf, but let me tell you that the process is quicker if you file the claim yourself for one reason; the opposite carrier is trying to win you over with fast customer service. They know most policyholders pay attention to how fast claims are handled and here is the moment of opportunity to win your business. The other added benefit of filing the claim under the opposite carrier is the service agreement that you can access when having your vehicle repaired. Did you know that some service shops offer guarantee on the work performed for the lifetime of ownership you have the car? This is a major factor on the shop putting their work on the line and saying we back it for as long as you have the vehicle. Check with your carrier. So next time you decide that you are going to take your vehicle to your shop because you want it that way (it is your right), take time and consider the extra perks that a partnered shop may have with a carrier and let them handle the repairs. Not to mention that you vehicle will not be subject to release problems after completion of repairs due to supplement payments not being received. Most partnered shops know that the carrier is "good" for the money and can release your vehicle after completion of repairs. This might not be the case with nonservice agreement shops.

Jermaine's rule #2 when filing a claim: Your rates will probably increase no matter what. In all of my years of driving (especially the years of no accidents), my rates had some kind of increase due to something. It is very difficult to find a carrier that will not raise your rights for some reason other than a claimed loss. Adjuster do not know the answer or the formula as to how insurance companies increase rates. Just understand that the chances are you will be surcharged for an accident if it is your fault or not. Notice when you shop for auto insurance and they ask have you been in a accident within the past two years or so? Well I was shopping for once and a carrier said they had to surcharge me for the accident I was in and I was rear-ended. So why should I have to pay for that? These companies find ways, people! So file the claim if you desire for your vehicle to be repaired. If the cost are under your deductible, then consider other options.

Jermaine's rule #3 when filing a claim: If you do not have a serious injury, leave these ambulance chasing lawyers alone. Settling with the carrier is so much better. That is when there is not a serious injury involved. However, there should be a law as to what threshold dollar amount an attorney could get involved in my opinion. The only reason they are there is to cause delays and nothing more. However, it is your right if you appoint an attorney or not, but be very careful because most of them hurt your payout than being the benefiting factor in a settlement.

Jermaine's rule #4 when filing a claim: Your adjuster cannot act as an attorney on your behalf. Remember me saying in the beginning that I am NOT a Public Adjuster? That is the role of a PA. We as in-house and independent adjusters cannot make the opposite carriers provide coverage or make a decision on coverage. It is the Carrier's duty to assume liability and you have to wait, or go through you own policy and wait for a process of Subrogation. The subrogation process in which, your insurance company pursues the other insurance company at fault for the damages paid out to repair your vehicle. Keep in mind that Carriers can only pursue the coverages on your policy. For example, if you do not have rental coverage on your policy; your carrier cannot try to recover what you paid out for rental while your vehicle was in the shop (another good reason to file a claim with the at fault party).

Jermaine's rule #5 when filing a claim: Mitigation of loss can be in your favor. If you can help it, have your vehicle towed to your place of choice after an accident. Don't let a cop tell you where your vehicle has to be towed. Unless you were part of a high-speed, DWI and bank robbery; its safe to say that you have every right to inform the officer that you would like your vehicle towed to a designated location. Unfortunately you have to be quick on your feet and call the Notice of First Loss Team and have your carrier pick your vehicle up ASAP. These wrecking companies have a reputation for bogus storage fees and most carriers will ask you to have your vehicle removed to avoid paying highly exaggerated fees with wreckers. Some carriers may send you a mitigation letter explaining this. They are not saying they will not assume responsibility for the loss; carriers are saying lets lessen the financial blow until liability has been established. The evil side of the coin is if a carrier denies liability and then you are on the hook for storage fees and that can be a nightmare, especially in Houston, TX.

Jermaine's rule #6 when filing a claim: There are several reasons why your claim could be denied for coverage. This could happen in the "law of insurance". I will list the most common reason as to why your claim could be denied by another carrier. This why you should respect the investigation process and know that you are being protected the same way.

1. Unlisted Driver- Driver not on the policy could void coverage, but the carrier should do a complete investigation be factoring this in. That is why a conversation with you is very important. Get on record with a statement even if you want to make a statement with your carrier, do it. However, don't avoid communicating with the other carrier. Trust the process.

2. Policy lapse- Unfortunately, life happens and this is why you have Un-insurance Motorist Coverage. The deductibles are normally lower and the coverage on rental could be slightly different under your regular coverage. Check with your specific carrier for details.

Jermaine's rule #7 when filing a claim: If you have suspicion, or slight belief that you are dealing with a person who has no insurance, or a "fly-by-night" insurance company; file the claim under your policy and save the headache. Now this is different from rule number one because your peace of mind is everything. Most major carriers will take care of you if they assume liability, but these small carriers can be a pain to deal with. In this case, I hope you have a low deductible and let your carrier handle the process and you can sleep at night.

There are so many details to cover, because no loss situation can never be the same. It is very important to remember to take photos of both vehicles damages and all four conners of both vehicles, and even VIN (vehicle identification number) if possible. Take intersection photos and traffic lights and signs. label your photos if you can. Of course you will not remember all these details because of the fast-paced moment of an accident (and grace that you are able to walk away) there are many moving parts. I hope this was a clear as mud when thinking about filing a claim under your policy, or the other party's policy. Stay safe and stay in your lane!