I heard about this diminished value of a car after an accident from someone here in New Jersey. Are car insurance companies responsible for the diminished value if the policyholder files a car insurance claim?

Paul

Passaic, NJ

The discussion about diminished value has been in frenzy for years since majority of car insurance policies were mum about the subject matter whether car insurance companies are responsible for any or believed decrease in car’s value after an accident, even if the car has been fixed to its pre-accident condition. Car insurance companies fight that diminished value would not be covered, but policyholders don’t agree. And there have been a lot of court cases in which the policyholders battle with their car insurance companies about diminished value compensation.

However, the Insurance Services Office or ISO, the agency that gives insurance forms and data, has written a policy language that car insurance companies could now use in 45 states (New Jersey included) and Washington, DC that legitimately takes car insurance companies not liable for diminished value compensation in bodily damage coverage car insurance claim. In some cases, auto insurance policies work this way — the ISO puts forward sample property or casualty guidelines to state insurance departments all over the US that make it easier for car insurance companies to change and simplify their car insurance policies. A number of state insurance departments should authorize the report of the ISO prior to a car insurance company taking on any guidelines suggested by the ISO.

I had an accident before and unfortunately filing a claim is a strange thing for me that I used my own money to do the repairs even if I have car insurance. The thing is, I don’t know how and what to do, if and when an accident occurs to me again, what are the things I should do to report a claim and what are the things I should expect my insurers to do here in Missouri?

Sam

Columbia, MO

Many people are no experts regarding car insurance claims especially when a driver doesn’t usually get an accident for fun. But then again, everybody whose car is insured is definitely informed what to do but when an accident happens almost everything we know about our policies are forgotten due to shock or pressure but definitely you will remember your car insurance especially when the expenses are flooding in.

If a driver had an accident here in Missouri, the first thing they should do is to call or inform their insurers in which you should know the car insurance companies 24-hour hotline or log in to their website where there are preliminary questions you will be answering. And after that a claim representative will call you within two hours upon your claim report in which you have to schedule the assessment of your car and don’t be shy to ask anything regarding your deductibles and your coverage. Your insurers will be inspecting your car the day you have agreed and they will help you with the repair service. Other car insurance companies usually let you choose your own repair facility and they will also help you rent a car when you really need it.

Are there any hidden fees that car insurance companies charge that I have to be careful about? I also need to know some tips on how I can be able to save some money for my car insurance here in Washington.

Nicholson

Tacoma, WA

You may encounter some instances wherein car insurance companies give the lowest cost for car insurance but add up to their costs in some other means. Some car insurance providers charge yearly percentage rates for monthly insurance payments of almost 40 percent. Other car insurance companies are making up for the losses on their too low cost insurance rates by charging an extra fee every time a client travels out of the country in their vehicle. In other words, you don’t have to trust the publicity of the car insurance companies and do your part in researching for the best policy that suits you from different car insurance companies.

There are a number of ways that you could be able to save on your auto insurance. First is that you could keep your no claims bonus so that this way, you may save up to 70 percent on your insurance costs after five years in case you don’t have any accidents. A lot of people discover that their insurance costs increase harshly following the first renewal period once they have lost their no claims bonus, so keep being accident-free as long as possible. Another way to save money for your car insurance in Washington is keeping your vehicle secure. You could put anti-theft gadgets and make sure that the garage where you store your vehicle is fully protected. It’s sure fire that you will have cheaper car insurance if your vehicle is less likely to be stolen.