Answers to Common Insurance Questions

This is the first in a series of articles providing answers to some of the questions most commonly asked by our customers after a loss. We hope that they will help you to better understand the claim’s procedure.

Answers to Common Insurance Questions

Let’s dive into our common insurance questions:

Are there any specific time limits for an insurance company to pay for collision or comprehensive claims?
There are no specific time limits for the settlement of claims. By law, insurance companies are required to pay all claims in a prompt and reasonable amount of time. However, what constitutes “prompt and reasonable” may vary from claim to claim – claims that require special or extended investigation may take longer to resolve. Mother Nature can also impact claim processing – inclement weather conditions can often increase the number of claims being filed as well as slow the settlement process down.

If an automobile is declared a total loss following an accident, is the insurance company required to give me the replacement cost?
When your vehicle is declared a total loss, your insurance company will only pay you the actual cash value of the auto on the date of the loss, not the cost to replace it. If your vehicle has substantial value because of its exceptional condition (such as an antique, classic or restored automobile, you should have it appraised and then consider insuring it for the appraised value.

Do I have to pay an auto insurance premium after my vehicle is declared a total loss?
Yes – the vehicle is considered insured until the policyholder returns that plates to the Registry of Motor Vehicles. If you don’t have your plates because your automobile was either stolen or lost in a fire, you must go to the nearest registry office and obtain a lost/stolen plates receipt. This receipt must be presented to your insurance company in order to cancel your policy and eliminate your need to pay any additional premium.