Getting insurance is a requirement of the law when you buy a car. Most experts would tell you to get one that you can afford. However, before you make a decision, you need to know how car insurance works. To gain more information about car insurance claims, here are 5 things you need to know.

  1. Claims can significantly help you financially

A car insurance claim is applicable when you and your vehicle sustains damage due to an accident. If the damages to your vehicle are minimal, it is best to get payment in cash. It will allow you to maintain an NCD or No Claim Discount. For major damages, it is important to get a car insurance claim. There are different types of claims. The most common are the “Own Damage Claim” and “No-Fault Damage Claim”.

You can also hire a car accident lawyer to help you with claiming your insurance. For example, if you are involved in a car accident in Seattle, working with car accident lawyers in Seattle can greatly help.

  1. You won’t get anything if you’re the one at fault

Most insurance providers won’t care who is liable for the accident. Their only concern is the likelihood for them to pay out insurance claims. When you get into an accident, your insurance company will still pay for the repairs of your car and the car of the other involved party.

However, if you’re involved in a collision as the at fault party, you can’t receive any repairs if there’s no collision insurance on the policy.

  1. Coverage

Coverage is the total liability or risk that is covered for an individual and his car. A basic insurance will cover the damages to your vehicle. It includes damages that are caused by a third party or damages caused by you. It will affect the total amount you can get when you claim your insurance. Keep in mind that some policies differ from car to car.

Coverages that are a bit pricey may include injuries or death caused by a vehicular accident. It may also include damages from acts of nature such as landslides, storms, and flood. You will have the option to choose the additional coverage.

  1. (NCD) No Claim Discount

The NCD or No Claim discount is a discount you get when you don’t make any claims from your insurance in a specific period. You will have to more careful to prevent accidents. If you manage to avoid all that, you will get a discount once you renew the insurance for another twelve months.

The discount is bound to your name and not the vehicle. As a result, you can transfer the NCD to a different car. You can still make a claim from your insurance and get the No Claim discount as well. If you are not the cause of the accident, you can still claim your insurance and get the NCD.

  1. You’re not liable if it’s a “No Fault” accident

In many states, there are no-fault laws which mean that you can get insurance regardless of who caused the accident. This is a system that protects both parties from dealing with lengthy court battles just to determine the at fault party.

You must always know the updates of your insurance policy. Also, you must double check it to make sure that everything you want to be covered is included. Updates will also affect the amount you can get when you claim your insurance policy. Often times, the insurance companies might not update you on the changes and the total claims you can get. Do not hesitate to call a lawyer or the insurance provider to answer your questions about your insurance claims.

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