Feb. 1 - National Car Insurance Day

February 1st can only mean one thing, and it’s not that we’re already one month into the new year. Believe it or not, it’s National Car Insurance Day.

While you may not be celebrating with carols heralding the benefits of insurance or gathering around the decorated “insurance tree” to exchange gifts, it is a good time to think about the type of auto insurance you currently have and the coverage it provides.

It’s not uncommon for claims to cost tens of thousands of dollars, if not more. Insufficient coverage can result in higher out-of-pocket costs or a significant financial burden. When choosing insurance, it can be tempting to choose a lower-cost insurance policy, however, if you were to experience an auto accident how well will you be protected?

In general, a basic auto insurance policy contains six types of coverage that include:

• Liability coverage;
• Medical payments;
• Personal Injury Protection coverage (PIP);
• Collision coverage;
• Comprehensive coverage; and
• Uninsured/Underinsured motorist coverage.

Depending on where you live, some of these coverages may be required by law.

An insurance agent can be a great resource to answer questions and help provide an overview of options available in the marketplace.

Understanding auto insurance claims

In addition to making sure you have the right level of coverage, it’s helpful to understand how the claims process works. If a claim does have to be filed, a common question is just how long will it take to complete that process?

There are several factors to keep in mind regarding auto insurance claims and the length of time it will take to process.

Two of the biggest factors impacting the claims process is the severity of the accident and the type of auto insurance you have.

If the accident involved a number of people and/or significant property damage, or there are delays in response times to requests for additional information, the claims process can also be prolonged.

Additionally, there could be delays related to actually repairing a vehicle that could prolong the process. Delays can result from a repair shop being booked up or waiting for a parts delivery to complete the repair.

The bottom line is that the sooner you file a claim the sooner it will be completed. One of the best ways to speed up the claims process is to file your claim digitally immediately after an accident.

You can find additional information about auto insurance and the claims process by visiting www.thesilverlining.com.