My Personal Finance Blog

When facing an insurance case, people often find it frustrating to wait for the insurance company to settle their case and ask how long it takes to process a claim. Many customers look for legal support of their anticipation, asking if there are any laws regulating the duration of insurance procedures.

Every state has its own regulations and legislation concerning insurance activities to which the insurance companies have to abide. In some states you may also find things like “Unfair Insurance Practices Act” or “Unfair Claims Settlement Practices Act”, which are more specific and targeted at insurance activities in contrast with broader laws and regulations presented in other states. The nuances and specifics of such regulations have their own peculiarities across different states, however there are certain common points that they all share in regard to insurance companies, imposing them to: a) accept your insurance claim within a specific period of time (usually 15 days); b) conduct a prompt investigation on your claim a) make everything possible to process and settle the claim with a clear liability. Besides, the insurance company has no right to refuse your claim a payment without delivering a valid and clear reason.

In case you feel that your insurance agent or company representative did something without correspondence to state legislation, you might want to speak to the person’s supervisor first. In case the attempt wasn’t satisfactory, it’s time for you to file a report in your state’s insurance regulation department. If the department has other similar claims concerning the same company it will conduct an investigation and is likely to impose a fine or even revoke the company’s license if the case is quite severe.

In some states you are even allowed to take legal actions against an insurance company individually, if you feel to do so. In case you choose to pursue in a lawsuit against your insurer, there are certain regulations that might help you: a) broader interpretation of coverage provisions, b) limited interpretation of exclusion provisions c) favorable interpretation of any ambiguities contained in the policy. However, take into account that in certain states, in case you’re successful with your legal action you will only get the claim amount, while in other states you may also be reimbursed with court fees and punitive damages.

Here are some helpful tips you may use in order to be prepared in case of filing a home insurance claim.

Prior getting the policy:

• Write down the coverage proposals told by the agent, you may need them for reference in the future
• through the policy before signing it, making sure that you understand its contents
• Don’t misinterpret or change the information provided to the application

Prior to filing a claim:

• Read your current policy thoroughly

When the claim is filed:

• Review your actual home insurance policy and the notes you’ve taken when signing the policy
• Inform the insurer about your loss in a prompt manner
• Keep the claim as objective as possible
• Log your communication with the insurer (especially when speaking by phone)
• Get all the materials proving your claim (such as receipts)
• Have copies of any documents you give to the insurer no matter what
• Estimate the loss on your own
• Sign releases or checks only if you think they’re fair

It should be a big surprise to anyone that young drivers have higher insurance rates than older car owners. There is a set of reasons behind such a state of affairs and parents unwilling to pay high premium rates for their teenage drivers shouldn’t think about dropping the coverage altogether. Instead, there are effective ways your teen driver can opt for lower insurance rates and save you some buck from the family budget. Here are some tips on how to do that:

1. Learn the offers at the market.

Shop around and see what local insurance companies have to offer. There are providers that specialize in high risk drivers (and teens also make part of this group), however there is also a small number of companies that work exclusively with teenage car owners and offer preferential rates. If you are able to find such a company in your area that would be the best option for you. Otherwise, compare the rates with different companies and choose the one that is more liberal towards young car owners.

2. Be a good student.

Good students can usually opt for special discounts with the majority of car insurance providers. This is because the statistics have proven that good students are safer and less risky drivers and thus can have lower rates. However, you should ask the insurance company what are the requirements and will be ready to provide proof with your current

3. Encourage the teen to pay a part of the premium.

Nothing encourages better saving and hard work when financial interest, so when you make the teen pay a part of the insurance premium you will instantly see how he or she tries to minimize these costs. This can be a good push for better grades and research on other insurance options. But be realistic about it, if your teen can’t manage to pay the premium in whole don’t put the burden and make him pay only the part he can.

4. Raise the deductibles.

Deductibles are the amount of money you have to pay upfront from your wallet before receiving the insurance benefits. And they are reverse-related to the insurance premiums, meaning that the higher is your deductible the lower premiums you will pay each year. So if your policy carries the smallest deductible, it’s better to raise it to the amount you can really pay out of pocket if something happens. This will cut your premiums for about 10-20%

5. Buy a vehicle that will give you low car insurance quotes.

It shouldn’t be a revelation to most of you that the car you drive strongly influences the rates you pay for insurance. And finding an insurance-friendly auto for your teen will really help cut the costs. Try searching car insurance quotes online to see what autos offer you the best saving opportunities and cost less to insure.

6. See if you can include the teen into your policy.

Some auto insurance companies allow parents to include teens into their insurance policies and sometimes it will help you in saving on insurance rates compared to having a separate policy for the young driver. Ask your insurance agent about your possibilities and if has any financial sense and provides some money saving options then write your teen in.