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The
Information below was provided by the the Massachusetts
Department of Insurance.
 Are
there any specific time limits for an insurance company
to pay for collision or comprehensive claims?
My
auto was declared a total loss following an accident. Is my company required
to give me the replacement cost?
Do
I have to pay an insurance premium after my auto is declared a total loss?
May
I keep my auto if I have a collision, limited collision or comprehensive claim
and my insurance company
declares it a total loss?
The
body shop is repairing my auto after an insured loss. Will my insurance company
pay for original equipment manufacturer (OEM) parts?
An
object damaged my windshield and I am unable to determine where it came from.
Am I covered for this loss?
Can
my insurance company deny a claim for damages to my auto if the principle place
of garaging listed on my
application is false?
Is
my insurance company required to notify me of its decision to cancel my policy?
What
can I do if I actually receive a cancellation notice?
Who
is liable for the storage charges on my damaged auto when there is a dispute
as to the amount of the claim payment?
May
an insurance company request a down payment in advance when I purchase or renew
an auto insurance policy?
And is it possible to pay my premium monthly?
If
I own an auto with collision and comprehensive coverage, will my insurance
apply to a rental or borrowed
private passenger auto?
How
do I go about switching insurance companies without
paying a penalty?
1.
Are there any specific time limits for an insurance
company to pay for collision or comprehensive
claims?
. There are no specific time limits for the settlement
of claims. Insurance companies are required by law to pay all claims in a prompt
and reasonable amount of time. However, what constitutes "prompt and reasonable" may
vary from claim to claim. Claims that require special or extended investigation
may take longer to resolve. Inclement weather conditions often cause an increase
in the number of claims filed and that can slow the process down as well.
2.
My auto was declared a total loss following an
accident. Is my company required to give me the
replacement cost?
When your auto is declared a total loss, your insurance company will only
pay you the actual cash value of the auto as of the date of the loss, not the
cost to replace it. Your auto's value is determined by the following factors:
the retail value for an auto of like kind and quality prior to the accident;
the price paid for the auto plus the value of prior improvements to the auto
at the time of the accident; the decrease in value of the auto resulting from
prior unrelated damage which is detected by the appraiser or for which a claim
has been paid; and the actual purchase cost of an available auto of like kind
and quality.
If your auto has substantial value because of its exceptional condition such
as an antique, classic, or restored auto, you should have it appraised and
then insure it for the appraised value.
3.
Do I have to pay an insurance premium after my
auto is declared a total loss?
Yes, the auto is considered insured until the policyholder returns the license
plates to the Registry of Motor Vehicles. If you don't have your license plate
because your auto was stolen or because your auto and plates were destroyed
in a fire, you must go to the nearest Registry of Motor Vehicles office and
obtain a lost or stolen plates receipt. This receipt must be presented to your
insurance company in order to cancel your policy and avoid paying any additional
premium.
4.
May I keep my auto if I have a collision, limited
collision or comprehensive claim and my insurance
company declares it a total loss?
Your insurance company has the option to take title to your auto when it
issues payment on your claim. The insurer is entitled to any salvage value
your auto may have. You can, of course, negotiate with your company to purchase
your auto for the agreed salvaged value.
5.
The body shop is repairing my auto after an insured
loss. Will my insurance company pay for original
equipment manufacturer (OEM) parts?
If the repair of the damaged part impairs the
operational safety of the auto, the insurance
company will pay to replace it with an OEM part.
For non-safety
parts, unless your claim occurs during the first 15,000 miles on the auto’s
odometer, you are not entitled to OEM parts. For autos with more than 15,000
miles, state regulation allows for the replacement of damaged parts with used,
reconditioned or after market parts. You can insist on OEM parts, but you will
have to pay the difference in cost.
6.
An object damaged my windshield and I am unable
to determine where it came from. Am I covered
for this loss?
Yes, if you have comprehensive insurance you are covered for the full amount
of the loss, unless you opted for a $100 deductible for glass breakage. The
$300, $500, or $1000 deductible, or whatever you may have selected for comprehensive
coverage, does not apply to a glass loss.
7.
Can my insurance company deny a claim for damages
to my auto if the principle place of garaging
listed on my application is false?
Yes. If you or someone on your behalf gives false, deceptive, misleading
or incomplete information on any application and if such information increases
the insurance company's risk of loss, your company may then refuse to pay claims
under any or all of the Optional Insurance coverages of the policy. Such information
includes the description and place of garaging of the vehicles to be insured,
the names of the operators required to be listed and the answers given for
all listed operators.
In the event that you have moved since you filled out your initial application,
promptly notify your insurance company and the Registry of Motor Vehicles of
your new address.
8.
Is my insurance company required to notify me
of its decision to cancel my policy?
Yes. Your company must send you a notice at least 20 days prior to the effective
date of the cancellation. A notice sent by regular mail with a certificate
of mailing receipt obtained from the Post Office is considered sufficient.
Certified or registered mail with a return receipt is no longer required.
9.
What can I do if I actually receive a cancellation
notice?
You can pay the exact amount called for on the notice or, if you feel that
the cancellation is unjust, you may submit a written appeal to the Board of
Appeals at One South Station, Boston, MA 02110-2208. This must be done prior
to the effective date of cancellation.
10.
Who is liable for the storage charges on my damaged
auto when there is a dispute as to the amount
of the claim payment?
The insurance company is responsible for paying storage charges until it
makes a reasonable offer to settle the claim. However, if the consumer disputes
the amount offered and the company revises its offer, this does not necessarily
mean that the original offer was unreasonable. Disputes over what is reasonable
can be resolved with your company through the process described in your insurance
policy. You can also submit a written complaint to the Division of Insurance
if you are unable to settle the dispute.
11.
May an insurance company request a down payment
in advance when I purchase or renew an auto insurance
policy? And is it possible to pay my premium
monthly?
Your insurance company may request up to a 30 percent down payment of the
annual premium prior to the renewal or issuance of your policy. Many companies
offer an installment payment plan for the balance of the premium. You should
check with your agent or company to see what options are available to you.
12.
If I own an auto with collision
and comprehensive coverage, will my insurance apply
to a rental or
borrowed private passenger auto?
Yes. Your collision and comprehensive
insurance coverages are transferable to a substitute rented or borrowed private
passenger auto that is damaged while it is being operated by you or members
of your household with the consent of the owner. There is no coverage under
your policy for family friends or significant others. You should be aware that
your coverage is available only if you rent or borrow a private passenger auto
in the United States or Canada. You should also be aware that your policy does
not provide coverage for a borrowed or rented truck. If you are renting a truck,
you should check with the rental company regarding the purchase of collision
and comprehensive insurance. If you are borrowing a truck, make sure you determine
whether or not the owner has purchased collision or comprehensive coverage.
If the owner does not have insurance, you may be personally liable for any
damage to that truck which is the result of your negligent operation. If the
use is for business rather than pleasure, call your agent first. Business use
is usually not covered under your personal auto insurance policy.
13.
How do I go about switching insurance companies
without paying a penalty?
Once you receive an invoice reflecting
new (not estimated) rates and any applicable new deviations or discounts, you
have 30 days to change insurance companies without paying a "short rate" penalty.
If you make a change within this 30 day period, you will pay your former insurance
company on a pro-rata basis at its newly established rates until the date the
coverage with your new insurance company begins. If you choose to switch insurance
companies outside of the 30 day period, you will be subject to a short rate
penalty which decreases as your policy year progresses. |
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