How to deal with insurance companies following an accident

Many people are more concerned about their motor vehicle than their own injuries and future health. The following steps will help ensure that you collect everything you are entitled to from the insurance company(ies) you deal with following an accident.

1. Gather all the facts about the accident. This includes getting a copy of the accident report as soon as possible. This helps determine who the police concluded was at fault (or responsible) for the accident. Insurance companies rely on these reports the majority of the in deciding liability relative to property damage claims.

2. Read your automobile insurance policy. I recommend that you check your insurance coverage and read your policy on a yearly basis.

3. If you were at fault in an accident with another vehicle, tree, garage or mailbox, you need to check you own auto policy for collision coverage. Collision coverage will repair your vehicle regardless of fault in accordance with your policy terms.

4. If the accident was the fault of another vehicle in Florida, you can recover from their third-party liability property damage coverage or under your collision coverage.

5. Decide which insurance company should pay and for what. In order to make that decision, you must first determine the facts and examine the applicable insurance policies.

6. If you have collision coverage and the other party is at fault, you can still choose to have your insurance company pay your claim. If your property damage was more than $10,000, you would definitely make your claim under your collision coverage—especially if the responsible party only had the minimum property damage coverage of $10,000. (Florida law requires all owners to carry a minimum of $10,000 liability property coverage on their vehicles to be legally licensed and driven in Florida. This coverage is checked annually when you renew your registration and also when you renew your Florida Driver's license.) This is the only way for you to make a full recovery. Collision coverage is not limited to $10,000.

7. If you choose to have the damages paid under your collision coverage, there is usually a deductible amount in the range of $200-$500. Your insurance company should recover this amount for you, when they make a subrogation recovery from the party at fault or their insurance carrier. You should advise your insurance company in writing about protecting your deductible. Keep a copy of that letter for your records and verification. You should be aware this recovery process might take some considerable time (3-12 months).

8. Understand how insurance companies pay for damage to your automobile. They will pay the fair market value of your vehicle or repair costs, whichever is less. If the repair costs exceed 80 percent of the fair market value, the adjuster will declare the vehicle a total loss. The liability insurance company should also pay for towing, storage and reasonable rental car bills.