Car Insurance Do's and Don'ts

Being a retired insurance adjuster I have seen a lot of things and have heard a lot of interesting stories. So many people have a misconception about their car insurance coverage, this is due mainly because:

a. They haven't taken the time to read their policy

b. Their agent did not explain what the policy covers and doesn't cover.

c. Insureds just want the least amount coverage so they can save a few dollars.

First, I'm going to tell you a little story about a Giant Opossum

I received a call from an insured one day stating that the night before he had run over an opossum and he had all kinds of damage to his vehicle. Now, opossums are typically 15" to 20" long and 9 - 13 lbs. (keep this in mind during this story).

Ok, so the insured stated he hit a opossum and it took off his front bumper and left front fender. WOW now that's one giant opossum! I asked him if he called the police. He responded "no, I was scared so I kept driving". Well, I guess if I hit a opossum that big I'd keep driving too.

Needless to say I knew he did NOT hit an opossum. Sending my appraiser out to take photos of the damages (and look for any blood and hair) it was obvious that the insured had struck another vehicle. Of course he didn't want to admit it, because one more collision claim and his policy would be cancelled. In the meantime, I received a phone call from the "opossum" who explained to me the entire story about the accident and faxed me a copy of the police report. Again, sending my appraiser out to view the damages on the "opossum" vehicle, it was clear that the insured had hit the "opossum".

Yes, evil insurance adjuster that I am, I paid the insured under his collision coverage - subject to his deductible; and I paid the damages to the claimant vehicle.

Six months later the insured called me infuriated that I, the evil insurance adjuster, paid his claim under collision when he told me to pay it under the comprehensive coverage. I simply told the insured: "Sir, the opossum called me". The insured promptly hung up.

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Now, insurance adjusters are not as evil as most people think. We go to school and are licensed and know the policies inside and out, what is covered and what is not. We are also required by law to take continuing education classes to keep up with changes in the law as well as changes in the policies.There are many different policies that we have to know, and yes, they are at our fingertips for us to read.

Personal Lines Auto Insurance is either Standard or Non-Standard. Standard is for the driver who doesn't have accidents. Non-Standard are for 'high risk' drivers who don't know how to drive and have had many accidents that have been their fault.

Let's take a Standard personal lines auto policy: Collision coverage covers damages from a collision. This can be a collision with a tree, a vehicle,a building, having a tire blow-out and it damaged your vehicle. .

Comprehensive coverage covers damages from hitting a deer (animal), hail, a tree falling on your car and fire.

Now, by purchasing an insurance policy, you have entered into a contract with your insurance company. This contract (your policy) states that the insurance company reserves the right to investigate any and all claims against the policy and decide whether to replace or repair the damages. If you don't allow an investigation, the contract (policy) states that the insurance company can refuse coverage. One huge msconception (one of which I read on Hubpages) was that if you had an accident and damaged your vehicle, you get your vehicle repaired first then demand your insurance company replace the damaged part and force them to pay you back for it. If the insurance company refuses to pay then take them to court. NOT!!! Generally people who do this are trying to hide something. If you backed into a tree and dented your vehicle it's covered: as long as the damages are above your deductible which means you have to pay the first $250 or $500 of the damages first and your policy will pick up the rest.

Pizza Delivery Drivers: Guess what...you don't have any coverage at all on you vehicle if you get into an accident. You need to take out an endorsement for a 'work vehicle'.

If you use your personal auto for any type of business use and get into an accident, there is no coverage under your personal lines auto policy unless you have a 'work vehicle' liability endorsement. This endorsement is rather inexpensive and usually will cost approximately $150 a year.

Avon representatives: Guess what... if you are in the process of picking up or delivering your products to your customers and get into an accident - No Coverage.

If you park under a tree during a storm at your apartment complex (a healthy tree) and a windstorm comes up causing a limb to break off the tree hitting your vehicle. You can't force your landlord to pay for your damages. The damages will go under the comprehensive portion of your policy. Now, if the tree was dead and you wrote to your landlord telling them that the tree is unsafe and your landlord didn't take any action, that's a different story.

I have even been told by claimants that (during Hurricane Katrina) their vehicle was damaged because their landlord put a curse on them.  Oh, please!!!

I had an attorney tell me that while enroute to the hospital to have a baby, the claimant was forced into having a C-section because "the baby's head grew in utero due to the accident".  Dude, apparently you don't know anything about babies AND you didn't read this womans medical records as it was a planned C-section due to the STD she had.

Insurance adjusters don't have a crystal ball, we are trained to investigate accidents, determine fault and determine coverage.  If you get the repairs done before we investigate or if you don't cooperate you are only hanging yourself out to dry.  Unfortunately, many people in this country are 'suit happy' and they make their entire income by claiming injuries.  We call these people 'professional claimants'. 

Keep in mind, every time you make an insurance claim whether it be for property damage or for bodily injury this information goes into a database.  Adjusters can see how many claims you have made through any insurance carrier. 

If you are not sure what kind of coverage you have on your auto policy, call your agent.  That's what they are their for, to explain what is and what is not covered under your policy.  Lack of common sense and greed seems to be the driving force in most of the claims I have seen over the years. 

Oh, and by the way, the woman with the hot coffee from McDonalds - she didn't get as much money as you think she did.  Again, common sense would tell me NOT to put a hot cup of coffee in a paper cup between my thighs as I was driving!!!!