Having the security of auto insurance policy allows us not to worry about consequences of owning a vehicle. Also knowing that our state has a good control over companies offers us extra security. If millions of motorists are going to feel comfortable with paying billions of dollars there must be confidence in the market.
This comfort is taken from the knowledge that most companies are well established and a few of them are well over hundred years old. They pay billions of dollars every year on claims and sometimes they have to put their hands in their pockets to meet them. There are years that claim payments are more than the premiums collected.
If any company wants to offer insurance products or sell them in any state they will need to register with the insurance commissioner and get licensed. It is illegal to deal with these products without a valid license. Firms have to comply with the requirements of the state and they need to meet financial criteria.
They need to subscribe to state insurance safety net. This is on its own an institution formed to protect policyholders in the even of any of the licensed companies going down. State will use the funds to pay the outstanding claims and if any money remains they will pay back the unused portion of claims. So, there is a good guarantee for the policyholders and this guarantee helps increase the confidence in the system.
You can also contact the state insurance commissioner’s office for information, guidance and support. You can complain about the way you have been dealt by an insurer and they will take it up with the company on your behalf. They have can apply certain degree of pressure on the firms but obviously cannot make them take a decision in favor of you unless a law has been broken.
When you have an issue with your provider you should first call them and try to resolve it with communication. Try to talk to a superior in the company and explain your situation or appeal to a decision made. This is your contractual right and you will be taken serious. It is in the best interest of the provider to solve the problem with you instead of having to answer to their head office or third party bodies like courts.
If all fails you should evaluate your position carefully and seek legal advice. There are countless occasions companies refuse a claim only to end up paying much larger settlements in the courts. Think about your chances of challenging a decision and costs. It is not cheap to employ a lawyer and you don’t want to end up with nothing but bills if you fail.
These are the types of issues we will be dealing on this website and you should check the posts. If you like it, please bookmark and come back again to see the new posts. You can also reach us through the contact form. We will try our best to be of help.