Handling an auto insurance claim is serious business and is often complicated. Make sure you know these common terms:
Collision vs. Comprehensive Coverage
Collision coverage helps pay for damage to your vehicle if it hits another car or object, is hit by another car, or rolls over. Comprehensive coverage helps pay for damages to your vehicle that are not caused by a collision. Examples include theft, vandalism, hitting a deer or other animal, storms, and certain natural disasters. Typically, comprehensive coverage also covers glass damage.
The fixed dollar amount that is your responsibility as the policyholder. For example, if your policy includes a $1,000 deductible, you will be required to pay that amount towards the repair of the damages, or that amount will be deducted from your payment if your vehicle is damaged beyond repair or a settlement check is sent to you directly.
Your car may lose value over time due to factors such as age, wear and tear, and obsolescence. When Travelers is determining the value of your vehicle, depreciation will be among the factors considered.
All claims need to be investigated. This may entail reviewing the details of your accident, contacting witnesses and assessing the damages.
If you cause an accident, hurt someone or damage property, this coverage may provide compensation to the harmed party or pay for your legal expenses if you are sued. This coverage is required in most states.
Loan/Lease (Gap) Coverage
If you are making payments on your car and it is damaged during an accident or a Total Loss, this coverage may pay all or a portion of the cost difference between your outstanding loan amount and the actual value of the vehicle.
If you have rental coverage and your car is damaged during an accident, this coverage may pay all or a portion of the costs associated with renting alternative transportation.
If your vehicle cannot be driven as a result of damage or mechanical failure, Travelers may be able to help. Depending on your policy coverages, there may be charges for which you will be responsible.
If another person is responsible for the damage to your property, Travelers may seek reimbursement from that other person or that person’s insurance carrier. If there is a recovery, you may receive reimbursement for some or all of your deductible.
When a vehicle is considered unsafe to use or damaged beyond repair.