Chicago Auto Insurance Claim – Who Gets The Money
Reader question:
When I make an auto insurance claim in Chicago, then who gets the money, me or the repair shop or the other driver?
Greg
Thanks for asking, Greg.
Well, that depends on a few things. Was the accident your fault or the other driver’s fault? Because those are the two defining issues. If a car accident is your fault, then the title put on the IL auto insurance claim is first party claim. On the other hand, if the car accident is not your fault, then the IL auto insurance claim is instead called third party claim. Here is a break down of the two.
- First party claim.
You file a first party claim on your IL auto insurance policy if you are found at fault for an accident and yet you have collision coverage to take care of damage to your own property. You will first pay the deductible that you have signed up for, and when the claim is approved, your IL auto insurance company will issue a check. Whose name is on the check depends on what terms you signed off on in your contract. So long as you agreed to it in your contract, you have no right to complain.
In most cases, the check for a first party claim will have both your name and the name of the mechanic who is repairing your car. The reason for this is that lots of fraud goes on and this insures that the check cannot be used for fraudulent purposes and that you end up repairing your car as desired. In some cases, though, your IL auto insurance company might make the check out to you. You will then be allowed to find a repair shop that you like and have your vehicle repaired there. It all depends on the company and, most of all, the contract.
- Third party claim.
Third party claims are a lot easier, because you are working with the other driver’s car insurance company. Since you have no obligations to them, not having signed their contract, they have to treat you better than they would their own IL auto insurance policy holder. This usually goes more quickly, and the claims check is made out to you.
Cheers,
Fashun Guadarrama.
Help With Auto Insurance Claim In Illinois
Reader question:
I’ve made a claim with my auto insurance company, and it’s taking forever. Is there anything I can do? I need to move on!
Lily
Bloomington, Illinois
Excellent question, Lily.
Your auto insurance company is really messing things up here, as it should know what its obligations are in regards to paying you quickly and to your needs. There are actually laws mandating that your auto insurance company pay you promptly. However, you should take a couple of steps before you start trying to get those laws enforced. Whatever the outcome, you might want to look into changing to another auto insurance company.
First of all, call your auto insurance company and ask them what is going on. If you can’t get an answer, then ask to speak to someone who is higher up. There could be a real reason for why you have yet to have had your auto insurance claim settled. They should have contacted you whatever the case, but there still might be a reason.
If they cannot give you an explanation for the delay, then ask when it is you should expect your claim payment. It is possible that you could catch them at their inefficiency and they can fix things for you right away. Give them a chance to wrap things up first, and then take the next step.
If your auto insurance company fails to act, then it is time for you to act yourself. You can go to the Illinois Department of Insurance website, and there you can read about how to make a complaint about your auto insurance company. Normally, if you make a complaint then they will request that you follow it up with documentation. You submit this, and if they see it is a reasonable complaint, then they will take it up with the auto insurance company.
Cheers,
Fashun Guadarrama.
I Got Into An Auto Accident In Illinois But Not My Fault
Reader question:
I got into an accident and it was the other driver’s fault, so I filed a claim with their Aurora IL auto insurance company. Apparently, now they’re lying and saying it was my fault! What do I do? It was not my fault!
Sammy
Excellent question, Sammy.
I hear your concern. The trouble with much of our high insurance rates among Aurora IL auto insurance companies comes from fraud, and this is a small type of fraud in that this person is claiming that you were at fault for an accident that was not your fault. This puts you into a difficult situation because his Aurora IL auto insurance company is going to be inclined to believe their own customer, and thus the burden of proof is now on you to prove that you were not at fault for this accident.
This is where your documentation should come in, and let’s hope you have it. First of all, at the accident did you call the police and was a police report filed? This will be of great importance in proving that you were not at fault to his Aurora IL auto insurance company because normally the police report will say who was negligent or deliberate in causing the car insurance accident. If you don’t have a police report, then shame. You should always get a police report when a claim is going to be filed, because otherwise you run into problems like these later on. If you want a copy of the police report, you can usually get it from your police department for a few bucks.
Beyond that, were there any witnesses to the accident? You could call on them to make statements to the effect that you were not at fault for the accident. Another thing to consider is whether or not you have photos of the accident, or at least what the cars looked like immediately after. Their positions could be a good indicator as to whom was at fault.
If all else fails to convince the Aurora IL auto insurance company, then you would do well to contact an accident attorney. They can help you make your case stronger so that you can continue to file your claim.
Cheers,
Fashun Guadarrama.
How To Handle Your Auto Insurance Claim Check
Reader question:
Does it make any difference to your car insurance claims check if you’re still paying off your car?
Susan
Great question, Susan.
It sure does make a difference if you’re still paying off your car, and it adds a twist to the whole third party first party dynamic and makes the whole process a lot longer and more frustrating in most cases. In some cases, you won’t have any hassle. For example, we recently got into a fender bender with another guy and filed a claim with his car insurance company. They repaired the car, gave us a rental car, we were in and out in a couple of days and all I had to do was give a call to my car dealership. Very easy, but not always the case.
In many cases what you will have to do is contact the institution that is financing your car, and they might have to send someone from the bank out to inspect it and verify the damages. You’re going to be getting your car insurance claims check with both your name and the lien holder’s name, so you really have no options here because you can’t get anything done until they endorse the check. This might take a few weeks.
Most of the time you just take your car up to the lot and have them look at it. Then, later on, you will have to send the bill of services that you received from the mechanic, along with photos of your car now that it is repaired, and the check ready to be signed. If all is well, then they will endorse the check and send it back to you and you can go on your merry little way.
Cheers,
Fashun Guadarrama.
When Should You File a Car Insurance Claim
Reader question:
When should I file a car insurance claim?
Alyssa
Excellent question, Alyssa.
Your car insurance policy may say that you have to call them up immediately if your vehicle so much as lightly ticks your mail box, but that doesn’t mean that it’s so. As the coach said in Waterboy, “What mama don’t know won’t hurt her,” and the same philosophy (if you want to call it that) goes for your car insurance company. In fact, some claims, if they are reported to your car insurance company, could actually hurt you.
The reason that your car insurance company wants you to tell them about every little nick, scratch, and bump is because they want to avoid any kinds of fraudulent claims for damages that weren’t incurred in any accident you may later claim. This is understandable, but Belvidere IL car insurance law does not require it, so you can be the judge of your own intentions.
So how do you know when to file a claim and when not to? Well, the standards that I will go by would be:
- If someone is hurt, nothing else matters. You need to call your car insurance company and file a claim.
- If your damages are under the amount of your deductible, then there is no need to file a claim.
If you file a claim when it is unnecessary, then you could risk some consequences, such as having your car insurance policy canceled or not renewed at the end of your policy term. To find out what the requirements are for a company to be able to cancel your claim, call the department of insurance and ask.
Cheers,
Fashun Guadarrama.
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