Auto Claims Payment
How Do Auto Insurance Claims Payments Work?
Whether youâ€™re in the process of an auto insurance claim or you just want to be prepared for dealing with one down the road, understanding how auto insurance claims payments work is an important consideration.
Because of the costly nature of auto incidents, drivers need to know when theyâ€™ll receive payment and how the entire process works.
Understanding Auto Insurance Claims Payments
One of the first and most important things to remember about auto insurance claims payments is that every insurance company is different. Thatâ€™s because there arenâ€™t laws in place that dictate how insurance companies must make payments, so itâ€™s left up to the company to determine their own payment policy.
What does this mean for you? Well, if youâ€™re receiving a payment from someone elseâ€™s insurance company when theyâ€™re at fault, the process might be different than how you would receive reimbursement from your own insurance company.
The Ways that Insurance Companies Issue Payments
Some insurance companies issue payments directly to the repair shop. Others require that you make the initial payment and youâ€™ll then be reimbursed.
Some insurance companies might even send an adjuster to a repair shop to get an estimate or even require several estimates from different shops to ensure theyâ€™re getting the best deal.
What is the Best Option?
There isnâ€™t one right answer to what kind of auto insurance claims payment procedure is best, but many policyholders prefer a policy that pays directly. That means youâ€™ll never receive a payment or have to make a payment, because the insurance company will be responsible for paying the repair shop themselves.
However, sometimes policyholders prefer a company that reimburses them after the repair work is done because they can then use the money however they want.
Thatâ€™s right – just because you receive a check from an insurance company to cover the cost of repairing your vehicle, you arenâ€™t technically required to put that money toward the repairs.
However, there is one important caveat here: If you lease or finance your vehicle, youâ€™re responsible for repairing the car to its original condition because you donâ€™t hold the title.
When youâ€™re shopping for a new insurance policy, itâ€™s important to ask how the issue auto insurance claims payments ahead of time. If Lupton and Luce Insurance is your provider or if youâ€™re thinking of making the switch, call us today to learn more!