We all know how insurance companies work. They won’t let any opportunity to slip by where your insurance could not be claimed. Even after all the conditions are met, they expertly crunch the insurance amounts.
With little variability this goes for all insurance enterprises, but agents of automobile insurance companies bear the most ferocious reputation. They know the rules and policies as those are imprinted on their brains. When you look out to recover insurance money for a damaged car, they stand as a wall between you and your money, with tons of questions that must accurately be answered.
Most consumers think they understand how car insurance works, which turns out to be a disappointment when it comes to reclaiming the insurance. Insurance providers are relentless towards your emotions, doesn’t matter how humble and friendly they appear to you at the time of application. Remember, they have nothing to do with your emotions. So you must know about the working rules and try to comply with them if you are counting on your insurance. Here are a few things your insurer already knows about you.
The Vehicle’s History
They do not only check your claims history, motor vehicle record and credit history, but also pull reports on your car’s mileage, vehicle registration, ownership history and even your driving record. Their agent also knows whether the reports are used in calculating your insurance score, which is similar to the credit score. You also don’t have access to your FICO insurance score, by the way.
Vehicle’s ISO rating
ISO Vehicle Series Rating system enumerates a car’s make, safety ratings, physical durability and other parameters, which are used by the insurance company to evaluate the risk of insuring a particular model. Higher the risk, higher is the premium you get.
Speeding and Parking Tickets etc.
Yes, this is included in your vehicle’s history and can be used against you to cut down the rates of your damaged car. I bet you didn’t know that. Moreover, they have a predefined reduction value for each category of tickets, which is subtracted from the total recovery you will be paid. This shouldn’t be a concern for you if you have been a law abiding citizen of the UAE or Saudi Arabia, otherwise all those traffic offenses will mock on your face when you go collect your insurance money.
Your Driving Record
Insurance fund is based on accidental damage of your property, which in this case is your car. This is the reason why the insurer will track history of your driving behaviour to map out whether the accident was your fault. As a result, a drunk driver has to remain silent with zero chances to get anything back. Likewise, number of violations to traffic rules and regulations can also considerably cut-down the total amount paid to you. Remember, the insurance agents are master at tracking down evidence better than real cops, and they are paid well for their skills.
The Vehicle’s Repair History
When you insure your car, the insurance providers replicate the initial condition of the car. We know this is not the same amount that will be returned, because cars are subject to minor damages, repairs and reversing performance with time. Perhaps, you already know this, what you do not comprehend is that a certain number of repairs can declare your car at total loss, which means zero reimbursement. The criteria for evaluating whether a vehicle is a total loss is different for different companies, according to rules set by the State.
Your Personal Score
It encompasses your criminal record, unpaid tickets, DUI, license suspension, traffic offenses etc. If you are a subject of these activities, you won’t get car insurance at the first place. If these actions are observed afterwards, they can definitely affect your car insurance or cancel its renewal. This could also include minor offenses that you’d deem unreasonable. You can’t sue the company because this policy is based on guidelines provided by the State and backed up by the law. There is exception in rare cases for which you have to consult a lawyer or an agent who is on your side.
Hiring the Vehicle
It is not too hard to find out, if you have been renting your car for hire. This completely violates their policy and as a result voids your car insurance coverage. The policy clearly states, you cannot use your vehicle in the transportation of goods or people. This means, if you get into an accident while doing so, you will be held liable and your insurance money will not be reimbursed. Some auto insurance companies amend policies to specifically exclude personal vehicle-sharing programs.
We have just scratched the surface, if you go into details of above headings, you will find out how far the insurance providers go to save a single penny that should go to your pockets. If you are new to auto insurance, just telling you to read their terms and conditions is not enough, you would need more homework.