Insurance applications are the first forms you’ll see when buying insurance. But if you’re not careful, that application could get your claim denied.
One of the first things that a claims adjuster will do when he receives your claim is ask the Underwriting Department to send him a copy of your application. Why? Because part of his investigation of your claim is to verify the information found on your application. Lots of times, adjusters find incorrect information on applications that allow the insurance company to deny the claim and even void the policy like it never occurred.
Let me give you a couple examples of denial that actually happened:
Example #1. A man bought car insurance in 2002. At the time their application was accepted, the only drivers were himself and his wife. They had a 10 year old daughter. In 2008, they had an automobile accident. The daughter is now 16 but does not drive. After the adjuster did his investigation, they received a letter from the insurance company that denied their claim. The letter said that the insured had failed to disclose a potential driver in the household. Even though they disclosed their daughters name and age in 2002, and the policy had renewed six times, the insurance company used a misinterpretation of policy language to deny a claim.
Example #2. A man applies for car insurance while married but separated. The application asks marital status, married or single. The man checks the box for “married.” He lists both himself and his wife as drivers. A few months later, he has an at-fault car wreck. His car is a total loss, he is being sued for negligence, and has medical bills of $5,000. The investigation finds that he was separated at the time of the acceptance of the application. The insurance company sends him a check for $525, which is his returned premium, and denies the claim, stating that the company would not have given the policyholder the “marriage discount” had they known he was separated.
So, how can you protect yourself from application errors? Here are six ways.
1. Fill out the application completely. Do not leave any boxes or lines blank
2. Do not sign the application until all of the information is completed.
3. Do not sign an application and allow the agent to complete it after you leave.
4. Once you sign the application, have the agent make you a copy of the application right then.
5. Once you receive your new policy, compare the information on your application with the terms and conditions of the policy.
6. Report changes in your policy promptly to your agent, like added drivers, deleted cars, or address changes.
If you will be very careful to do these six things, you can be confident that you will not have problems with your insurance company at claims time over your application.
Tuesday, February 3, 2009
Car Insurance Claims - Does Your Insurer Owe You Sales Tax?
More than half of the states in the USA require that the insurance company pay state sales tax when you replace your total loss vehicle. What those states do not mandate is that the insurance company has to tell you about the tax issue. You probably won’t get the sales tax unless you ask for it.
To find out if your state requires the extra sales tax payment, contact your state’s Department of Insurance.
No insurance company, whether it is your insurer, or another insurer who insures an at-fault driver, wants to pay you one dollar more than the lowest Actual Cash Value (ACV) that they can find. When the insurance company declares your car a total loss is when the strenuous negotiations begin.
Your mission...should you accept it...is to prove that your car is worth its absolute highest value.
State sales tax percentages vary widely from state to state. Here in Georgia, sales tax is calculated on a county-by-county basis. In Cobb County, where I live, the sales tax is 5%. However, just across the county line in Fulton County, the sales tax is 7%. But in the City of Atlanta, sales tax is 8%.
Look at the numbers on a $30,000 automobile. If you lived in Cobb County at 5%, the insurance company would owe you an additional $1,500.00. If you lived in Atlanta at 8%, the amount would be $2,400.00.
If you do not demand the extra sales tax payment, you're leaving thousands of dollars on the table that you are likely entitled to collect.
Don’t allow the insurance companies to mislead you. The Actual Cash Value of the car must include the state sales tax.
To find out if your state requires the extra sales tax payment, contact your state’s Department of Insurance.
No insurance company, whether it is your insurer, or another insurer who insures an at-fault driver, wants to pay you one dollar more than the lowest Actual Cash Value (ACV) that they can find. When the insurance company declares your car a total loss is when the strenuous negotiations begin.
Your mission...should you accept it...is to prove that your car is worth its absolute highest value.
State sales tax percentages vary widely from state to state. Here in Georgia, sales tax is calculated on a county-by-county basis. In Cobb County, where I live, the sales tax is 5%. However, just across the county line in Fulton County, the sales tax is 7%. But in the City of Atlanta, sales tax is 8%.
Look at the numbers on a $30,000 automobile. If you lived in Cobb County at 5%, the insurance company would owe you an additional $1,500.00. If you lived in Atlanta at 8%, the amount would be $2,400.00.
If you do not demand the extra sales tax payment, you're leaving thousands of dollars on the table that you are likely entitled to collect.
Don’t allow the insurance companies to mislead you. The Actual Cash Value of the car must include the state sales tax.
Insurance Claims Adjusters: Five Secrets of Getting Your Way With Claims Adjusters
Insurance claims adjusters are, for the most part, very nice people in a tough job. They are caught in between the insurance company that wants them to control the claim settlement amount, and you, the policyholder or claimant, who wants the very highest settlement amount possible.
But I’m not nearly as concerned about them. If they don’t like their job, they can quit. Nobody is forcing them to be claims adjusters.
I’m mostly concerned about you, the policyholder.
The book that I wrote, “Insurance Claim Secrets REVEALED!” shows consumers all the ways that they can take control of their insurance claims, and add hundreds or even thousands more dollars to their claim settlements. Many of the strategies in the book are confrontational. But you can learn to confront honestly without unpleasantness.
Insurance companies have games and scams that they use to delay claims and minimize settlements. Policyholders and claimants are usually placed under financial hardship when they have an insured loss. Few of the people I’ve ever met who had a claim could afford to repair or replace their damaged goods out of their bank account. Most of the time, people depend upon the restitution they receive from the insurance company.
Insurance companies know this, and rely upon it. They know that delays will place pressure on policyholders and claimants, and that makes them more willing to accept lower settlements.
Back in September 2008 I wrote and posted an article about “Dealing with Adjusters.” It has been one of my most popular articles. Thousands of people have read it. But today I want to put a spin on that article and make an even more obvious point.
When you are dealing with claims adjusters, make sure that you are ALWAYS pleasant, well-mannered, and polite. You can’t control them, but you CAN control YOU.
You need to “nice them to death!” Make sure you are doing the following:
1. Speak calmly whether in person or by phone, no matter what your level of frustration may be.
2. Make your requests for payment, documents or any other requests politely, and make them in writing.
3. Be firm but respectful when you are using a claim strategy. Being demanding will only make the adjuster feel threatened, and he will want to resist your demand to prove he cannot be controlled by you.
4. When you write a letter, be sure that you are polite and respectful. Simply state what you want them to do and remember to say “please” and “thank you”...just like your mother taught you.
5. Do not, under any circumstances, lose your temper! Words said in anger are impossible to retract. You can apologize as much as you want, but better to say things for which you will not have to apologize. Be in control. If you feel like blowing up at your adjuster, end the meeting or phone conversation and come back another time to finish your business.
I promise you that you will never regret maintaining your composure when you are immersed in the claims process.
But I’m not nearly as concerned about them. If they don’t like their job, they can quit. Nobody is forcing them to be claims adjusters.
I’m mostly concerned about you, the policyholder.
The book that I wrote, “Insurance Claim Secrets REVEALED!” shows consumers all the ways that they can take control of their insurance claims, and add hundreds or even thousands more dollars to their claim settlements. Many of the strategies in the book are confrontational. But you can learn to confront honestly without unpleasantness.
Insurance companies have games and scams that they use to delay claims and minimize settlements. Policyholders and claimants are usually placed under financial hardship when they have an insured loss. Few of the people I’ve ever met who had a claim could afford to repair or replace their damaged goods out of their bank account. Most of the time, people depend upon the restitution they receive from the insurance company.
Insurance companies know this, and rely upon it. They know that delays will place pressure on policyholders and claimants, and that makes them more willing to accept lower settlements.
Back in September 2008 I wrote and posted an article about “Dealing with Adjusters.” It has been one of my most popular articles. Thousands of people have read it. But today I want to put a spin on that article and make an even more obvious point.
When you are dealing with claims adjusters, make sure that you are ALWAYS pleasant, well-mannered, and polite. You can’t control them, but you CAN control YOU.
You need to “nice them to death!” Make sure you are doing the following:
1. Speak calmly whether in person or by phone, no matter what your level of frustration may be.
2. Make your requests for payment, documents or any other requests politely, and make them in writing.
3. Be firm but respectful when you are using a claim strategy. Being demanding will only make the adjuster feel threatened, and he will want to resist your demand to prove he cannot be controlled by you.
4. When you write a letter, be sure that you are polite and respectful. Simply state what you want them to do and remember to say “please” and “thank you”...just like your mother taught you.
5. Do not, under any circumstances, lose your temper! Words said in anger are impossible to retract. You can apologize as much as you want, but better to say things for which you will not have to apologize. Be in control. If you feel like blowing up at your adjuster, end the meeting or phone conversation and come back another time to finish your business.
I promise you that you will never regret maintaining your composure when you are immersed in the claims process.
Subscribe to:
Posts (Atom)
