Plan to get a Cheap Car Insurance Quote Online

Want to know how to get a cheap car insurance quote online with a reliable company?
Here's how to do it.

Getting Car Insurance Quotes Online
In order to get a cheap car insurance quote you need to get quotes from a number of car insurance companies. Thanks to the Internet, you can quotes online in the comfort of you home in just a matter of minutes. There are a ton of websites where you can get car insurance quotes online. Unfortunately, most of them are run by insurance companies who only give you their rates. There are a couple of companies who also give you rates from their competitors, but from the comparisons I've done, they don't give you the cheapest rates that are available.

Where to Get Cheap Car Insurance Quotes Online
Your first stop in your quest for cheap car insurance should be at an insurance comparison website where you can get rate quotes from multiple insurance companies. All you do is enter your insurance information and the amount of insurance you want on a simple online form, then wait to get your quotes.
Most insurance comparison sites only deal with A-rated companies so if you decide to get your car insurance through them, you know the company will be reliable. Some of these site let you talk with an insurance professional, either online or by telephone, so you can get answers to any questions you may have, plus get tips on how to lower your premium. (See link below.)

After you get your quotes, go to J.D. Power's website (jdpower.com). Click on the "Insurance" tab at the top of the website, then click on "Auto Insurance Provider Ratings." On the page that comes up you'll see ratings for a number of different categories. Under the "Pricing" category you'll see what J.D. Powers considers to be the companies that offer policies with the best prices. I recommend getting rate quotes from the companies with highest ratings (five bullets).

By now you should have enough quotes to get a cheap rate on your car insurance. Before you buy a policy, read it over, or have an agent from the company explain it to you, to make sure you understand what you're buying and that you have all the coverage you need.
Visit http://www.LowerRateQuotes.com or click on the following link to get cheap car insurance quotes online from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section.

What shoud you know before Start Blaming Online Auto Insurance Quotes

When you think about the things you have to do before you can go shopping for online auto insurance quotes, what comes to mind? Identifying the safety features on your car? Clearing up any tickets in your own history? Taking a Driver's Education class? And more.  What you probably aren't going to think of is cleaning up your credit score, yet that small three digit number could be exactly what's dragging you away from the superb online auto insurance quotes you deserve! Yes.

Why Your Insurer Cares About Your Credit Score

I would love to be able to say that all your insurer cares about is your driving history. I really would. That would make it so much easier to steer you down the path to great rewards on your auto insurance. The unfortunate truth, however, is that in today's society we're basically numbers on a balance sheet in the eyes of our insurers and of those numbers, nothing generates more attention and controversy than our credit score.
States are fighting to make it illegal for companies to use credit scores as a foundation for their online auto insurance quotes, claiming that you can't judge someone's driving skill by the way they spend their money. Maybe they're right. That doesn't stop insurers from pointing out that drivers with a good credit score are often more responsible behind the wheel and, therefore, are less likely to be in an accident than their careless counterparts. In case you missed the memo, insurers love saving money, and they save thousands by insuring drivers that don't have accidents.

Clean Up Your Credit Score

If you haven't been in an accident in the past 5 years, are driving a safe, "low risk" car (just ask the Highway Data Loss Institute), haven't decided to set up house in the heart of New York City, park in your garage every night and you're still paying too much, you might want to take a look at your credit before you start pointing the finger at your online auto insurance quotes.
The good news is, cleaning up your credit isn't hard. All you really have to do is cut up all but one of your credit cards, pay off your debt and keep up on your bills and you're gold. The bad news is, if your credit score has taken some hits in recent years it could take a while to get it back to normal. The average "blip" will stay on your credit score for at least 7 years, sometimes more.
The good news is, if you can ride out those 7 years with a good credit score you'll be sitting behind the wheel of your very own hot auto insurance quotes in no time.
Clifford F. Berman is the CEO of QuoteScout, where they specialize in helping drivers find the hottest auto insurance quote.

Best Car Insurance with No Deposit, Auto Insurance Quotes with Monthly Payments

Many people these days are looking for a plan of pay monthly auto insurance with no deposit. Where they do not know, there are a lot of different agencies that will give insurance to new customers who do not require people to make a large deposit before they are covered. While you can probably find some good deals in insurance only by the search for a few minutes on the Internet, it would be a good idea to make sure you're going to end.

If you are trying to find a best car insurance with no deposit before receiving their coverage, chances are that you want to have flexible payment options. Not all companies are going to allow you to choose a policy that gives you the power to choose what you want to be covered and how much you can pay. Although it is illegal for people to drive without car insurance, unfortunately there are some people who still take the wheel without any. If you are a person who needs to obtain insurance, but does not want to make a deposit to work with a company there are plenty of things you can do.

The first thing you should do if you really need reliable to pay monthly no deposit car insurance, no deposit is to collect some quotes from the internet. To take the time to get quotes from the company that you can find, you will begin to realize that while some companies may give you a lower price, not all of them will have flexible payment terms. If you are confused about the process of buying insurance for your vehicle without making a deposit, you can contact an agent to help you, or they just have one of your friends to help me out.

To secure car insurance with no deposit, it’s beneficial for subprime borrowers as they do not have to part with cash to get hold of reasonable insurance premium. However, students and unemployed youth might have to take the route of pay auto insurance monthly with no deposit requests since they do not have a steady credit score or service record to verify their repayment ability. Going online can help such borrowers to compare car insurance with no deposit monthly payments but in the end it will be contingent on the insurance companies to approve or discard the application created on the applicant’s refund capacity.  will not only provide information related to how to get car insurance monthly payments no deposit offers but also helps the borrowers to access a vast network of insurance firms that cater to all types of borrowers.

An important reason that people are not able to obtain a deposit not for their car insurance policy is because they do not talk to an insurance agent about getting it. If you don't ask a representative about whether it will be able to get a plan that does not require any type of tank, which will be able to give you a direct answer. You can visit us in order to find all the information no deposit monthly payments car insurance.

In Under Two Minutes: Catalytic Converter Theft

 

Missing Catalytic Converter

What's missing in this picture? Catalytic converters contain precious metals, making them tempting targets for thieves
You walk out to your car and it's gone. Not your car itself, the navigation system or even your cell phone. The "it" is your catalytic converter. If you don't happen to notice it right away, the moment you start your car, you will. The sound has been described as "a deep loud noise," "an unmistakable roar," and even like "a Harley Davidson."
Dan McColl of Upland, California, remembers when it happened to him.
"When I got out of the gym, I started up my truck and it sounded like there was a hot rod in the parking lot," said McColl. "In fact, I didn't even think it was my truck at first. But when I cut the engine and it stopped, I knew that it was me. I was able to drive it, but it was like the gas wasn't really engaging. I drove it to the mechanic and he was able to tell me right away that the catalytic converter had been stolen."
The catalytic converter was mandated for all U.S. cars and trucks in 1975, to convert harmful pollutants into less harmful emissions before they left the exhaust system. Precious metals such as platinum, palladium, rhodium or gold are used as the catalyst. Depending on which metal was used, thieves can sell the converters to metal recyclers for $20-$200. The recyclers then extract the metal and resell it for as much as $6,000 an ounce, as in the case of rhodium. While national theft figures are not recorded for catalytic converter theft, the crime has risen in tandem with sharply rising metal prices.
The unfortunate vehicle owner will have to pay $1,000 or more for a replacement converter to be installed, depending on parts and labor charges. If the thief damages the vehicle's wiring or fuel line in the process, the vehicle could be left in a dangerous state and cost far more to repair. If the thief steals your converter without causing additional damage, you should still be able to drive your vehicle, but you'll need to install a replacement converter as soon as possible if the law still requires one. Ironically, during the writing of this article, a catalytic converter was stolen from a Toyota truck belonging to the brother-in-law of Edmunds.com Director of Vehicle Testing Dan Edmunds. The quote to replace it was $1,200, but because there is no smog testing program in the rural county in which he lives, he's not sure he'll replace it.

An Easy Grab and Go

Thieves can remove a catalytic converter quickly, often in less than two minutes, so theft can even occur in broad daylight. The only tools a thief needs are a wrench (for converters that are bolted on) or a reciprocating saw (for converters that are welded in). Some thieves bring a mechanic's creeper. Then all they do is slide under the vehicle, remove the bolts holding the converter, and take it. Thieves can remove the unit within a minute or two.
Typically, catalytic converters are stolen from cars and trucks in driveways, strip malls or in parking garages. "Anywhere cars are exposed," says Detective Abram Yap of the Long Beach Police Department.
The most commonly hit vehicles are SUVs and trucks, especially late-model Toyotas, because they sit higher off the ground (making for easier access) and the bolts that connect the converter are easily removed. Yap says his department has been seeing more Nissans targeted as well.
Rudy Espinoza, wholesale parts manager for Surf City Nissan in Huntington Beach, agrees, noting an uptick in requests from owners of older-model Nissan Frontiers. "It's crazy," he says. "We get calls, "How much is a catalytic converter? Mine was stolen!"

How To Prevent Catalytic Converter Theft

There are a few options that may help prevent this type of theft. Some mechanics suggest welding the heads on the catalytic converter bolts — or simply shearing them off.
The aftermarket has responded by designing products to deter and prevent catalytic converter theft. The idea behind such devices is that if it takes too long to make the steal, the thieves will move on to easier pickings. The CatClamp, for example, which starts at $150, is a hard-to-defeat cage installed around the catalytic converter. This product can be installed by a mechanic or at home with an included specialized tool and is backed by a money-back guarantee.
While most owners don't give much thought to their catalytic converter, those with vehicles high off the ground might want to think twice. It's always wiser to park in well-lit or protected public parking lots, and to park your car in your home garage if possible. Owners whose vehicles have easy clearance underneath might want to take it a step further with an aftermarket product. Taking these precautionary measures will hopefully deter thieves and keep your car running smoothly.

Does Your Credit Score Affect Your Car Insurance Rate?

Does your credit score impact your car insurance rate? It's a question you might have wondered about before — especially if you have a particularly spotty credit record. Unless you live in California, Hawaii or Massachusetts, the short answer is yes. The explanation of the relationship between credit scores and car insurance rate-setting is more complex, however.
What Factors Into a Car Insurance Rate?
Obviously, your driving record has an impact on the estimated risk your insurance company assumes by taking you on as a driver. There also are other risk elements that affect your car insurance, according to the Insurance Information Institute: where you park your car at night, your gender, your age and the kind of car you drive. Also relevant to your rate, according to insurance companies, is your credit score.
The practice of using credit scores in setting insurance rates has been around for at least 20 years. According to at least two studies, a 2003 study done at the McCombs School of Business at the University of Texas at Austin, and a 2007 study by the Federal Trade Commission, there is a statistical correlation between how much a consumer costs an insurance company and that customer's credit score.
The Texas study looked at a random sample of 175,647 people in the state and found that "the lower a named insured's credit score, the higher the probability that the insured will incur losses on an automobile insurance policy, and the higher the expected loss on the policy." The study's authors noted that they did not attempt to explain why credit scoring added significantly to the insurer's ability to predict insurance losses.
The FTC study found that credit-based insurance scores are effective predictors of risk under automobile policies. "They are predictive of the number of claims consumers file and the total cost of those claims," study authors write. "The use of scores is therefore likely to make the price of insurance better match the risk of loss posed by the consumer. Thus, on average, higher-risk consumers will pay higher premiums and lower-risk consumers will pay lower premiums."
It's also important to note that insurance companies don't use traditional credit scores. They build their own scores based on FICO or Experian scores: Basically, companies take your score and use it in their own model.
But Is This Fair?
According to J. Robert Hunter, director of insurance at the Consumer Federation of America, credit scoring was the first classification factor used by insurance companies that was not based on traditional actuarial research. Before this, he says, rate factors were determined by developing a thesis and then testing it by collecting data to determine if it was correct. For example: If the thesis was that drivers with a DUI conviction might have more claims in the following year, actuaries might look at statistical evidence to see if such a thesis was correct.
Hunter said that advocates for the use of credit scores in car insurance rate-setting "still cannot explain what they are measuring, coming up with explanations like, 'Sloppy with finance means sloppy with driving.'
"Of course, when the 2008 financial crisis hit, many people developed worse credit scores that had nothing to do with their sloppiness," he said.
"The fact is that credit is a surrogate for prohibited rate classes such as income and race," Hunter said. "Insurers are prohibited from using these factors in all states and we think this is their way around the prohibition."
But others argue that insurance is a numbers game and the practice, even if unfair, might be logical. Frankie Kuo, an analyst at ValuePenguin.com, says that insurers are "doing their best to find out whether their future and current policyholders are a good or bad risk to take."
What You Can Do To Mitigate Your Costs
Regardless of whether the use of credit history is fair, it is legal in all but three states. So what can you do if your credit score is in less than perfect shape? As always, your best bet is to shop around for an insurance company.
"Insurers always differ in how much weight they put on each rating factor, and I guarantee you consumers will always find one that finds their imperfect credit score less of a problem than other insurers do," Kuo explains.
According to a study by WalletHub, Geico appears to rely the least on credit scores, while Farmers Insurance seems to lean on it the most heavily.
For consumers who have difficulty finding coverage at all, in almost every state there is an assigned risk plan that helps high-risk drivers find coverage for a limited period of time. "Even if the rates may be higher than if they obtain a policy in the voluntary market, they will be avoiding insurance lapse, which not only contributes to higher rates in the future, but also possibly legal consequences," Kuo explained.
Finally, improve or maintain your credit history by paying your bills on time and not skipping payments. You also should check your credit report and keep an eye out for possible errors. Consider free credit monitoring with a company like CreditKarma and free annual credit-history reports from AnnualCreditReport.com.

Car Insurance Companies Use Facebook for Claims Investigations

In the hours after a car accident, filing a claim with your auto insurance company is one of the first steps you should take. But auto insurance industry insiders say a smart second step is giving social media accounts the once-over to prevent all or part of that claim from being denied.
In the past five years, the use of social media has exploded within the insurance industry, says Frank Darras, an insurance attorney in Ontario, California, who represents plaintiffs in suits against insurance companies. Because social media Web sites provide a real-time examination of users' lifestyles, insurance companies, claims adjusters and attorneys have begun to monitor and mine them as a valuable source of claims-investigation evidence. Insurers are reviewing information found on such social media sites as Facebook, LinkedIn, Instagram, Twitter, Foursquare, Google Plus and Pinterest, and applying it to auto claims, says Chicago personal injury lawyer Michael Helfand.
"This happens all the time," he says.
Facebook is used in almost every claim now, especially when there is an injury. "Checking social media accounts has become one of the first things an insurance company or adjuster will do when you file a claim," adds Darras. Especially when any injuries stem from the accident.
Claims Investigation by Social Media
Part of the new claims-investigation process is for an adjuster, agent or insurance company to look for the Facebook, Twitter or other social media account of a person claiming bodily injury stemming from an accident, Helfand says. They're looking for proof that the person is filing a fraudulent claim, he says.
If the part of your accident claim is for a back injury and you share post-accident pictures of you golfing, surfing or playing ball with the kids, your claim could be denied.
"Over the years, social media has killed a bunch of claims," says Helfand.
"Almost every insurance company has a special investigation unit (SIU), and policyholders should work on the assumption that SIUs will look into questionable or fraudulent claims," says Michael Barry, vice president of media relations for the Insurance Information Institute.
"Mining social media for clues is one of the fastest-growing areas of insurance-fraud investigation," says James Quiggle of the Coalition Against Insurance Fraud in a report published in 2012.
While insurance adjusters or agents may not look into the social media accounts of every person who files a claim, they will definitely dig into social media if they have any reason to suspect a fraudulent claim.
"It's simply part of the due diligence in investigating a case, because so many people are brazen or dumb enough to say one thing to an insurance adjuster while at the same time telling the world something else," Helfand says. "It's not unusual for a person to tell the adjuster and doctor how much their back hurts and then post photos from their softball league.
"Facebook and other social media sites have become a great tool for fighting claims because the 'look at me' nature of social media causes people to shoot themselves in the foot," he says.
A claims adjuster will also stick directly to the language you use in the claim. If you report that you're unable to lift more than 20 pounds, but a picture on social media shows you doing otherwise, Darras says you can expect the claim will be denied.
The same goes for tweets and status updates detailing your mood or mental state related to the accident. A stream of tweets about your road rage or noting that you're driving against doctors' orders because you're under the influence of medicine will raise red flags on any auto-accident-related injury claim.
Switch Your Privacy Settings
Using Facebook or Twitter activity in the claims process is completely legal — as long as the information is part of a "public" profile, Darras says.
"It is generally understood that if the adjuster or insurance company has to 'friend' or have a third party 'friend' the claimant on Facebook to obtain the information, then it becomes unethical and an invasion of privacy. Unfortunately, that doesn't necessarily make it illegal," Darras says
You can reduce your exposure by adjusting the privacy settings for Facebook accounts so that only people you select as friends can read your status updates or view photos on your account. And make sure privacy settings on Twitter are set to "Protect my Tweets" to limit who can read your timeline.
But beware: Your friends' social media accounts could also complicate an insurance claim. A photo or post on Facebook that's visible on a friend's public page might also be spotted, and used, by a car insurance company or claims adjuster, Darras says.
To be safe, Darras suggests removing the Facebook photos and tags or tweets of anything incriminating. For instance, delete a post in which your friends say that you're a terrible driver — even if they're joking. Helfand says an insurance company could use this evidence against you during the claims-investigation process.
"The responsibility to be constantly vigilant with Facebook profiles and Twitter streams is ultimately on consumers," says Helfand.
Keep Quiet
Don't rely solely on privacy settings to protect a claim. Helfand says the best advice is zipping your virtual lip.
"No matter how rattled, irritated you are, it's never wise to tweet or post on Facebook that you were involved in an accident," he says. "There's nothing to benefit from doing that."
In fact, getting social about an accident or car insurance claim is possibly the worst thing you can do.
"Doing this is just asking the insurance company to use the information against you, even if what you said was harmless in your eyes," Darras says. "Remember that jokes and sarcasm aren't conveyed well on social media and the insurance company will use everything they can."
Often insurance companies ask a person injured in a car wreck to provide information about their activities for a two-week period, says Darras. If any public Facebook activity doesn't match the log, the insurance company can think you're lying and treat the auto insurance claim as fraud.
Disputing the Social Scoop
If the Internet interferes with your claim, all is not lost. It may be possible to dispute anything an adjuster turns up on your social profiles.
"One of the biggest arguments consumers can use against insurance companies is their failure to investigate the information further and receive third-party support of the information they found on social media," says Darras.
And because social media should be a starting point, not the only evidence used in approving or denying a claim, you can press the insurance company to consider statements from other sources, such as doctors or witnesses, or allow you to explain the circumstances around the information found on your social networking profiles.
The Bottom Line
There is a time and place for social media, and it's not necessary to shut down your accounts after an accident. But it is important to watch what you post and be cautious about your participation in conversations, says Darras. And remember, regardless of your privacy settings, social media is never really private.

How Car Insurance Companies Handle Car Accident Claims

After an Accident, Collect Information

From the second after the accident, keep good records. Among the information items to collect are: the time and location and the other driver's name, license number, insurance company and contact information.When Apple programmer Kit Cutler's 2012 Ford Focus was slammed from behind by a silver Lexus, the hit was so hard that it shoved his car into the Honda Accord in front of him. Although no one was hurt in the accident, the driver of the silver Lexus drove off without providing insurance information to anyone. Cutler and the Accord's driver exchanged insurance information, filed reports with the police and went home. The accident was only slightly more confusing to Cutler than the insurance claims process that came after.
That car insurance claims process baffles nearly everyone. "Most people only file a claim every eight to 10 years," says Jeanne Salvatore, vice president for public affairs and consumer spokesperson for the Insurance Information Institute, an industry-supported, non-lobbying group dedicated to improving public understanding of insurance.
Cutler filed his claim by phone. "In that initial interview, the agent told me very quickly that I wasn't at fault," he says. Then she asked him questions about the accident and typed his answers into an online form. Cutler checked and verified the information.
"They go through it all very quickly, so you have to pay attention," he says. "I hadn't been in an accident before, and I didn't know what was going on."
This article explains what insurance companies are doing behind the scenes in the wake of an automotive mishap or collision. It also discusses what happens if you're hit by an uninsured or underinsured driver.
Immediately After the Accident
If you're involved in an accident, "The first thing to do is let your insurance company know you were in an accident and provide all the specifics of it," Salvatore says. "From the second of the accident, keep good records." Use your smartphone (or keep a notebook in your glovebox) and write down the time, date, plate number, make and model of their car, their registration information, license number, name, insurance company and contact information.
If the police are on the scene, Salvatore says, take their names and badge numbers. Get the names of any witnesses and note whether emergency medical personnel were called. "Photos are helpful. Take pictures of the car and the license plate," she says. "If the claim is straightforward, you may not need any of it, but if a problem occurs, you need all the information possible." Again, with the prevalence of smartphones these days, this is all quite easy to do.
From filing the claim to resolving it, every insurance company's methods are different. However, the essentials of the process are fairly standard. You'll only see part of the process, though. All negotiations between insurance companies about payments and reimbursements will be carried on behind the scenes.
Filing Your Claim
As with Cutler's case, it's standard for your insurance carrier to call soon after you report an accident. During that call, "We'll match the person to their policy, determine what happened in the accident, find out about any injuries, the extent of damage to both vehicles and get some demographic information," says Mike Flato, a process business leader for Progressive Insurance. "We'll make sure everyone is OK; if not, what happened and then who'll handle the medical claims."
After a claim is filed, your insurance company assigns you a claims adjustor, who is your contact from then on. Adjustors coordinate teams that look at medical reports, investigate the accident, speak with witnesses, view the scene, examine the vehicle damage, manage all the repairs and any medical treatments, check all coverages (how much your policy pays for medical injuries and property damages) and ultimately determine fault.
"The claims process is the business of the insurance company," says Salvatore. "Every situation is different, and the better organized you are, the easier the claims process is."
While adjustors work, medical treatment and auto repairs start immediately, with each insurance company covering its own driver's injuries and property damages. This process of "making you whole" is known as indemnification. Your insurance company indemnifies you, not the other way around. Later, after the insurance companies assess fault, they will negotiate to determine which one will reimburse the other for claims paid.
Who's at Fault?
Fault assessment is not necessarily a simple matter. "Liability laws don't govern how you assess fault," says John Murphy, service center business leader for Progressive Insurance. "They dictate how much you can collect and who is eligible." Therefore, fault determination is up to the insurance companies.
"There may be an allocation of fault, such as 60/40," says Scott Spriggs, a member of the Insurance Council of Texas. "In that case, payments may be apportioned by percent of fault." That is, the insurance company of the driver who is 60 percent at fault pays for 60 percent of the claims and the other company pays for the rest.
"Sometimes, if one party is allocated more than 50 percent of fault, that driver's insurance company pays for everything," Spriggs says. "In no-fault states, each driver's insurance company pays for its own customer's claims."
If one driver is wholly at fault, it's much simpler. "In at-fault states, at-fault drivers try to collect from their own insurance, whereas the person who is not at fault collects from the at-fault driver's insurance company," Salvatore says.
When an Uninsured or Underinsured Driver Hits You
It may come as a surprise, but the process doesn't change much when uninsured or underinsured drivers are involved.
"Each state has its own rules about what qualifies as uninsured and underinsured," says Murphy. If an uninsured driver hits you, and you suffer injuries, "your insurance company will pay you," he says. However, you must have collision insurance or coverage for uninsured or underinsured drivers in order for your carrier to pay for your car's damages. After any payments to you, your carrier "will try to find the uninsured driver and get reimbursement for its payments," he says.
Fortunately, Cutler got a photo of the Lexus' license from the Accord's driver. The photo meant Cutler's insurance company could find the hit-and-run driver and demand reimbursement for the $11,000 it paid to repair Cutler's car. Because of the photo, Cutler says, his insurance company waived his deductible.
Every state but New Hampshire and Virginia requires auto liability insurance. New Hampshire requires that drivers set aside funds for accidents, but Virginia doesn't, according to the Insurance Information Institute. Despite this, the institute says your chances of encountering an uninsured driver in the United States are about one in seven.
When a driver is underinsured, "your insurance company will work with the other driver's company to cover your claim," Spriggs says. For example, suppose the underinsured driver's policy covers up to $5,000 of property damage, but your vehicle sustained $10,000 in damage. In that case, the underinsured driver's insurance company will pay $5,000 and your insurance company will pay the other $5,000. Your insurance company will then go directly to the underinsured driver and seek reimbursement for its payment to you.
Although claims adjustors determine fault, "subrogation units" use those determinations to decide which insurance company pays and how much it pays.
"Subrogation is the substitution of one creditor for another," Spriggs says. "If I am hit by someone else, my insurance company will cover that damage." In other words, you substitute one creditor — your insurance company — for another creditor (the other driver's insurance company). That is subrogation. Then, of course, your insurance company seeks reimbursement from the other insurance company or the driver.
In Cutler's case, neither he nor the Accord driver were at fault. Therefore, each driver's insurance company paid its own customer's claim. No subrogation was involved.
How Carriers Resolve Payment Disputes
When each driver's carrier completes its claim investigations, "one insurance company will send a demand [for payment] to the other," Murphy says. "That will be countered. The carriers will then work out liability and who pays what. Most of the time, we make the appropriate payments. The faster we can do that, the faster we can pay out."
If companies can't agree on payment, they can request judgment from Arbitration Forums, an industry-funded nonprofit set up to handle insurance carrier disputes.
"For arbitration, the two companies apply and present all their information," Murphy says. "The arbitration panel makes a decision." Those decisions are final and binding, and there is no appeal.
What You Need To Know
Even the most minor car accident can shake you up. But it's important to know the steps to take so that everything will go smoothly in the claims process.
If you need to file an auto insurance claim, know what kind of coverage you have, be prepared with as much information about the accident as possible, stay in touch with your claims adjustor and know your state's laws regarding liability.
"Every state has an insurance commissioner," Salvatore says. "You can go to that Web site to learn about your state's laws."