Lots of online advice will lead you to believe that there are benefits to not filing a claim with your auto insurance in Peoria after a minor accident. Some sources will tell you that filing claims is just a time-consuming hassle that will raise your premiums. The truth is, when you choose to circumvent the claims system and seek a private settlement with another driver, you put yourself at risk. Today we’ll be discussing the pitfalls of opting for a DIY accident resolution—and the benefits of using the insurance you’ve already paid for.

Underestimating the Damage

So, you’ve had a fender bender. The damage appears to be minor, all cars involved seem to be driving fine, and thankfully everyone is able to walk away from it. But even a minor crash can cause a raised heart rate and a rush of adrenaline. As a way to cope with these sensations, many people will jump to the conclusion that everything is ok. It’s important not to let this impulse overtake your better judgement; you still need to file a claim, and here’s why.

Delayed Pain After an Accident

It’s not uncommon for an impact like a car crash to result in soreness, pain, and injuries that set on some time after everyone has walked away. Failing to take an accident seriously from the start may delay critical medical intervention, resulting in greater pain and suffering later on.

Delayed symptoms of an injury could include:

• Back pain
• Headaches
• Abdominal pain
• Pain in the neck or shoulders
• Numbness or tingling in the limbs
• Emotional pain and suffering (depression, anxiety, or PTSD)

While some of these will fade on their own without serious consequences, several of the symptoms listed above could serve to indicate a very serious injury. For example, an individual may walk away from an accident feeling more or less normal, only to have their mobility threatened by an initially undiscovered spinal injury. Therefore, it’s best to seek out a professional medical opinion and make a claim on your insurance immediately following an accident.

Medical Costs

Depending on the details of your policy, involving your insurance company can help alleviate the financial burden associated with automobile accident injuries. With the seriousness of a physical injury hanging in the balance, it’s best to alert your auto insurance company and make a claim as quickly as possible.

If your coverage has a “med pay” clause, the other driver’s medical bills will be covered up to a specified amount if you are responsible for the accident. Should you be injured, the reverse is true. If you opted for comprehensive collision insurance, your own automobile insurance may provide funding for your own injuries as well. The sooner you alert your insurer, the faster you will have access to the tools you need to recover from your accident.

Improve Your Legal Position

Car accident lawsuits are among the most prevalent types of personal injury lawsuits filed in the United States. If you, the other driver, or any of your passengers develop a medical issue as a result from the collision, a legal suit may soon be on the horizon. If you call your insurance provider immediately following an accident, you give yourself a stronger position from which to respond to—or file—a lawsuit.

First, taking this responsible step provides evidence of your upstanding character, which will help improve how you come across in court. Second, involving your insurer will create firm documentation for every step of the process (your lawyer will thank you). Third, and perhaps most important, you will not be handling the burden of investigating your case alone. Auto insurers specialize in getting the details of an accident and may make recommendations that can help you.

When Not to File an Auto Insurance Claim

If you have liability-only insurance and experience an accident that leaves only your car damaged, there is no need to file a claim. With liability insurance, only cars owned by other people involved in the accident are covered. Even with collision coverage, you may not want to file if your minor accident results in no injuries and only slight damage to your car. Examples could include denting the door while playing 1-on-1 in the driveway or scraping the bumper while pulling out. If you are unsure about filing a claim, it’s best to review the details of your policy.

Auto Insurance in Peoria

If you are seeking affordable auto insurance in Peoria, IL or near any of our other locations, Accurate Insurance can connect you with the most affordable quotes around. We offer competitive quotes that help get customers back on the road fast with the coverage they need. We also assist those who need motorcycle insurance, Indiana SR-50 insurance, SR-22 certificates, and rideshare insurance. It’s easy to receive an instant quote online or on the phone. We’re here to help, so please do not hesitate to reach out with questions.

The term “totaled” comes from the insurance term “total loss.” Put simply, when the cost of repairing a damaged vehicle exceeds the cost (or a set percentage of the cost) of repairing the vehicle, it makes little financial sense to spend the money for repairs. The insurance company calls the vehicle a total loss, and gives you cash for the vehicle.

Many drivers are upset when an auto insurance company tells them that their car is totaled. When we think of a totaled car we think of a mangled pile of steel. Since the decision to total the car is based on the amount of money it would cost to fix the car, some vehicle owners (especially those who are attached to their vehicle) will want to look for other options.

In certain states, drivers have some recourse, and can work with the insurance company on determining what will happen to the vehicle. For instance, shopping around for better estimates from trusted body shops, or finding shops that will use non-manufacturer parts, may lower the cost of fixing the vehicle. Check out state websites and know your rights.

It’s important to keep in mind that the total insurance companies are working with includes the cost of repairs, your rental vehicle, towing, storage, and any other incidental expenses associated with a lengthy and complicated repair. You may also be able to keep the vehicle if you are hopelessly attached (it is your property after all), but the insurance company will not be able to get paid by the salvage yard, and this may affect your payout.

How “Actual Cash Value” is Calculated

If your vehicle ends up totaled, despite your efforts to work with your insurance company, you will be given the “actual cash value” of the vehicle (or “ACV”). This amount is based on a claim adjuster’s estimate of what the car may have been worth prior to the accident. In many cases, the payout provided falls short of the true cost of replacing the vehicle.

Totaled vehicles are not good for the driver, and not good for the insurance company. So drive safe and avoid accidents! 

If the airbags deploy, is the car totaled?

One commonly held belief is that deployed airbags automatically render the car ‘totaled.’ While deployed airbags alone will not total a car, the cost of replacing the airbags can push the calculation for repairs higher than the ACV of the vehicle. Each individual airbag is likely to cost at least $1,000, with additional costs to replace modules or other related parts.

What happens if you total a leased car?

An accident with a leased car can be very expensive for the driver. If you total your leased vehicle in an accident, your insurance will be on the hook to pay out the ACV to the leasing company. The problem that can arise in this situation is that the driver will still be liable for the remaining payments on their leasing schedule. Oftentimes, the amount remaining on the lease exceeds the insurance payout, causing the driver to pay the rest.

Making the Most Out of a Wrecked Car

If your vehicle has been totaled in an accident, it is important that you take the following steps following the accident in order to salvage the unfortunate situation as best as you can. Following a total loss accident, both you and your insurer have options. Before explaining these, you should know the things to do after your accident.

Clean out your car.

Be sure to remove all personal belongings and papers from the vehicle. Depending on what happens next, you may not be able to access them later.

Report the accident and file your claim immediately.

A total loss claim can sometimes take weeks to complete, and the sooner you file your claim, the sooner the insurer can begin working on it. Don’t procrastinate!

Have the vehicle towed to the insurer’s preferred repair shop.

If you think there’s a good chance the car has been totaled, have it towed to a body shop preferred by the insurance company. Many companies have shops they work with, and you may speed up the claims process by using one of their shops. You can have your car towed to the tow company’s lot, but they’ll probably charge a storage fee. The preferred shop will usually hold your car without this fee.

Locate your title.

This is no time for your title to go missing. If your car is a total loss, you’ll have to sign the title over to the insurance company. If you can’t find it or you’ve lost it, you’ll have to file for a lost title at the DMV, delaying the claims process.

Review your car loan.

Knowing the balance on your car loan can prepare you in case the outstanding loan is greater than the current value of your car. Insurance loss claims are not paid out on the basis of what you still owe but on the current value of the vehicle.

One form of protection against this situation is to purchase what is called gap insurance. This pays the difference between what your car is worth currently and the amount you still owe on your loan. A rule of thumb for gap coverage: If you are less than halfway through the term of your loan – say two years on a five-year loan – having gap insurance is probably a good idea.

Do your own research.

This is not a requirement, but doing research at websites like Kelley Blue Book (kbb.com) can help you determine if the payout offered by your insurer is reasonable. Also, if you’ve made any recent major upgrades, it’s a good idea to collect the receipts as the improvements may be a factor in your final payout.

Fill out all required paperwork quickly.

Total loss situations often require a lot of paperwork, and finishing it as quickly as possible helps to speed the process. If you have an outstanding loan on the car you’ll probably need a signed, notarized power of attorney transferring ownership to the insurer once the loan is paid off. Be sure to sign your name exactly as it appears on the car’s title.

The Insurer’s Options

In a total loss situation, your insurer can choose whether to replace your car or reimburse you with a check. If they offer a replacement, it must be a make and model comparable to your totaled vehicle, and the condition must be as good as or better than your car was before the accident. The insurer must also buy from a legitimate dealer, and if it’s not more than three-years-old, provide a warranty.

Your Options

• You can reject the replacement vehicle offered by your insurer, and the company can then settle the claim by paying you the price it would have paid for the replacement— including taxes and transfer fees.
• If within 30 days of receiving a cash settlement you find a replacement that costs more than the settlement, your insurer must either pay to cover the difference, find a cheaper car or negotiate a lower price.
• This requirement does not apply, however, if your settlement was based on the price of a replacement car you refused to accept.

Keeping Your Totaled Vehicle

If for some reason you want to keep your totaled vehicle, it can be fairly difficult to do under Illinois law. Some of the factors that impact this choice will include:

• To discourage “chop shops” – criminal operations that break cars down for their parts – Illinois law says if your totaled vehicle is less than 9 years old, you must turn it over to the insurer with the title.
• If the totaled vehicle is 9 years or older, you may keep it. However, it becomes a “salvage vehicle,” and these cannot be legally driven on Illinois roads.
• If your totaled vehicle has only sustained extensive hail damage but is otherwise drivable, your insurer may allow you to keep it.

Looking for Affordable Car Insurance?

We hope that you have found our explanations helpful, and that you’ll think of us for instant auto insurance quotes. This article is brought to you by Accurate Auto Insurance, where even less-than-perfect drivers get the lowest auto insurance quotes every day.

First, it’s important to make sure you understand exactly what a totaled car is. To put it simply, it’s when it’s determined to be a “total loss,” or it would cost more to repair the car than the car is worth. Read this for more information on what a totaled car is.

Then check out these common questions (and answers!) on totaled cars. We hope you never have to undergo this experience—but it’s always best to be prepared.

1) How common is “total loss”?

A totaled car, or a car determined to be a “total loss,” is more common than you might think. According to CCC Information Services lead analyst Susanna Gotsch, 14.24% of all vehicle appraisals in 2013 were determined to be a total loss.

2) Who decides if my car is totaled?

Both your insurance provider and your state’s laws determine whether your car is totaled or not. Be sure to be aware of both your insurance coverage and how your state defines total loss.

3) What is the worth of my totaled car?

Your insurance provider bases this off of the market value of your car right before the accident. It’s determined by type of car, mileage, condition, standard features, extra features, and where you live.

If you want to figure out what your car’s market value was before the accident on your own, you have a couple of options. You can use websites like Kelly Blue Book to look up a typical market value of a car like yours or you can get another estimate from an appraiser.

4) What is gap insurance and how does it work? Do I need gap insurance?

Gap insurance is important to be aware of. If necessary, gap insurance can cover the difference between what your car is worth and the balance you owe on it. If you’re financing or leasing a car, gap insurance could be helpful for you—especially if you are less than halfway through an auto loan. If you own your car or if you owe less on the loan than the car is worth, gap insurance isn’t necessary.

If you have a totaled car and you are in the first half of financing or leasing a car, you could still owe money on a loan—for the same wrecked car. That’s where gap insurance can come in handy.

Any questions? Contact Accurate Auto today

To learn more about how a totaled car could affect you, feel free to contact the auto insurance experts at Accurate Auto today. Check out our FAQ for more answers to common questions.

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Fortunately there are auto insurance companies that specialize in classic cars. Often the same companies insure classic boats, modified cars, and sometimes even priceless heirlooms. Since these companies specialize in antiques and collectibles, they will be better able to determine the insurance value of your car, ensuring that the loss of your vehicle, should it occur, will not be financially devastating.

Several qualifications must be met for classic auto insurance. Most importantly, these insurance companies will not insure daily use vehicles. Often a limit of 5,000 miles per year is imposed, to allow for pleasure driving and short trips to shows (for longer trips the vehicle should be towed). This is the same limit enforced by motor vehicle divisions when you apply for historic license plates. Next you must check with the insurance provider to make sure your car really is an antique or collectible car. Some 1970s and 1980s models will not qualify, but if your car was made before 1972, you’ve got an antique on your hands, no doubt. Finally you must make note of all modifications, updates, and restorations made to the car. A classic car insurance agent is an expert who will know the true value of your vehicle, and can ensure that any repair work done to it uses the appropriate parts.

If you choose to go with a classic car insurer rather than a typical auto insurance policy, you may be surprised by how affordable your premium quote is. This is mostly because of the low miles the car will clock on the road – it is out of harm’s way most of the time, and therefore a very low risk to insure, even if it is worth $30,000 or more. Inexpensive classic car insurance can also be obtained for vehicles completely off the road for restoration or storage, covering theft, fire, and other non-collision losses.

So if you are thinking of restoring a car, it is probably unwise to do so if you must use that car for everyday driving. Your insurance company won’t cover the true value of the car, and you could be out all of your work in the case of an accident. But if you have a beauty that you can afford to limit the miles on, it may be worth keeping her off the streets in order to qualify for classic car insurance. With a low premium and the peace of mind that you are insured for the full value of your investment, you can better focus on your hobby.

Gap insurance can sometimes be purchased on newer used cars, where the dealer price of the car still may be significantly higher than an insurance payout would cover. Some insurance companies will only cover brand new cars, however.

So how do you get gap insurance? First ask your current or prospective insurance provider if they can give you gap coverage. Just like you would shop around for your basic auto insurance premium, you may want to shop around for your gap coverage. It is usually very affordable, and worth the extra cost to ensure that you do not end up carless and saddled with thousands of dollars in debt. Some dealers may try to sell you their own auto gap insurance as an add-on, but you can often get a better deal by purchasing this special coverage on your own.

Gap insurance is often required when leasing a car. It the coverage may be included in the lease price, but if not you will need to make sure you are covered. Since you didn’t purchase the car, the dealer will lose money if it is totaled. So they may want repayment from you immediately.

Finally, if you have an older car you are probably not eligible for gap coverage. If you still owe money on your older car, the best thing to do to protect your investment is to drive safely!

Whether or not to purchase gap insurance is a decision only you can make as a car owner, balancing the supplementary insurance premium cost against the potential risk of finding yourself with a totaled car in the future. Like all insurance, you never know when you might need it, but you sure are relieved that you are covered when an accident happens.

This article is brought to you by Accurate Auto Insurance, where Chicago, Illinois and Indiana drivers get quick, free auto insurance quotes.

Top Ten Websites for Auto Insurance Laws

Searching all over the web to find out your state’s coverage minimums? Need to find out your rights as an auto insurance consumer? We’ve put together a list of some of the top websites for insurance law information.

1. Insurance Information Institute
http://www2.iii.org

At the Insurance Information Institute you can find out how auto insurance works, determine how much coverage you need, and learn the steps of filing a claim. You can also explore statistics for things like teen driving, driving and cell phones, etc, and watch videos of what to do after an accident.

2. Auto Insurance Remedy
http://www.carinsurancerates.com/

At Auto Insurance Remedy you can review the lists of minimum coverage requirements by state, and read articles from some of the nation’s top insurance providers.

3. Consumer Action
http://www.consumeraction.gov/caw_insurance_auto.shtml

At this federal government site you can find links and contact information for your local insurance regulator, and read tips on finding insurance that complies with state laws. Consumer Action also helps you know your rights as a consumer, and provides advice on staying safe while researching auto insurance online.

4. About.com on Auto Insurance
http://personalinsure.about.com/cs/vehicleratings/a/blautominimum.htm

About.com has good articles on anything you want to know about insurance, by a real life auto insurance expert! This link is to a list of state minimums, with lots of in-article links to state law information, and an educational video.

5. Wikipedia on Auto Insurance
http://en.wikipedia.org/wiki/Vehicle_insurance

While you should always visit your state’s official site for your specific insurance minimums and insurance consumer rights, Wikipedia has a comprehensive article covering auto insurance and auto insurance laws around the world. The article also contains good general information on coverage levels and insurance terms, and links to articles by reputable sources. If you are completely new to auto insurance, Wikipedia is an excellent place to start!

6. CyberDrive Illinois

http://www.cyberdriveillinois.com/departments/vehicles/mandatory_insurance.html

At the official website for the Illinois Secretary of State (Illinois’s DMV), you can review Illinois state minimums, find out where to purchase Illinois auto insurance, and read about vehicle codes and laws that affect Illinois drivers.

(Note: We’re based in the Chicago area, so we’re including these two Illinois government sites – #8 and #9. Every state has different laws and regulations, so we recommend that you go to your state’s specific website(s) to get the appropriate information.)

7. Illinois Department of Insurance
http://insurance.illinois.gov/

The Illinois Department of Insurance provides news and articles for consumers, businesses, and insurance providers. Stay up to date on the latest insurance laws in Illinois, and know your rights as a consumer of auto insurance.

8. Accurate Auto Insurance
https://accurateautoins.com/

Accurate Auto Insurance provides definitions of insurance terms and descriptions of insurance laws via their helpful “Insurance Information” articles. A leading provider of Illinois auto insurance, Accurate specializes in guiding the consumer who is new to auto insurance, or who has had past auto insurance troubles.

Hopefully this list helps you find the information you need about your state’s insurance laws, and provides you with the knowledge to help make purchasing auto insurance online a safe and painless process.

This list was compiled by Accurate Auto Insurance.

While you probably wouldn’t want to change your life situation (i.e. marital status, home ownership) simply to lower your insurance rates, you could consider a safer, slightly older, or less valuable vehicle. You can also modify your vehicle to make it lower risk, for instance by adding an alarm. But chances are you already have a vehicle, and you want to keep the rates on it low without spending more money to do so. The easiest way to do this by maintaining your driving record – fortunately something you have a good bit of control over, and can work on doing every day.

Avoiding moving violations and infractions such as speeding and reckless driving is the easiest thing you can do to keep your insurance rates low. Moving violations happen when you break the law while the car is moving. Speeding, not using turn signals, running red lights, etc, are all preventable infractions that are completely up to you to prevent. Some states even consider a seat belt violation to be a moving violation. If you are not sure what is considered a moving violation in your state, you can get a free driver’s handbook from your local DMV. Ignorance of the law is no excuse for breaking it. Driving the speed limit, driving courteously, and buckling up will prevent you from getting ticketed for a moving violation, and leaving a mark on your record, which lasts three years in most states.

Avoiding a criminal violation while driving is a no-brainer. DUIs and criminally reckless driving will get your license suspended and could even get you jail time, not to mention the ticket fines. These violations can stay on your record for ten years or more, and usually increases your insurance rates, probably requiring you to carry an SR-22. Here are some common-sense driving habits that will help ensure that you don’t get involved in an accident or moving violation:

• Don’t drink and drive.
• Don’t drive under the influence of drugs that affect your physical or mental faculties.
• Don’t drive when feeling high stress or extreme emotion.
• Don’t drive when you are fatigued.
• Drive according to the law.
• Drive defensively, anticipating trouble before it happens.
• Stay aware and alert behind the wheel.
• Minimize distractions like music or other passengers.
• Pull off the road and stop to attend to tasks, including talking on the phone, reading a map, having an intense conversation with a passenger, etc.
• Use courtesy and respect in your interactions with other drivers and the driving environment.

Avoiding an accident is a great way to keep your rates low, but unfortunately even the safest drivers will likely be involved in an accident at some point. We can’t control everything that happens on the road, and we certainly can’t control other drivers. However, safe driving at safe speeds can greatly reduce your chances of causing an accident. Tickets for causing an accident take many forms, but they will usually stay on your record for three years. If you find yourself the victim of someone else’s negligent driving, you may still see an accident (“not at fault accident”) show up on your record, though it won’t affect your rates as much as if you had caused an accident yourself. The only way to prevent this from happening is to always be vigilant and pay attention while driving. Your own safe driving could keep you out of harm’s way.

Finally, if you have been in an accident or received a ticket for a minor infraction such as speeding, you can still keep your rates low if you choose to go to traffic school. You may arrange this with the authority that issued the ticket, and upon completion of the course the infraction will be removed from your driving record. Traffic school usually costs about the same as a ticket (which you still have to pay), however your savings on insurance over the next three years will probably make it worthwhile. But be careful! Most states only allow one traffic school exemption every 18 months.

Following these simple safety suggestions will greatly reduce your risk of being involved in an accident or bring ticketed for a moving violation. Your clean driving record will reflect that reduced risk, bringing you lower rates and a more affordable premium payment.

This information is courtesy of Accurate Auto Insurance, providing low auto insurance rates to safe drivers and drivers with not-so-spotless records throughout Illinois.

Finding Auto insurance discounts is important for seniors on a fixed income, and fortunately there are many discounts that they can take advantage of. A senior’s clean driving record will get them started with a good driver discount, and their older vehicle often needs less coverage than a new car would require. Depending on how vital the car is to their daily routine, they could even remove collision coverage at this point, keeping liability insurance only (keeping in mind that if the car were damaged, insurance would not pay to repair it). This would make their insurance payments much lower. Some insurance companies also offer discounts if a senior driver takes a “refresher” driving instruction course, or if a senior has an AARP membership. Finally, be sure to ask the insurance agent about any other discounts that may apply.

For those of us who use the internet to find the best rates on everything from car insurance to hotels, we know how easy it makes finding discounts. If you know a senior who needs car insurance, or who may be paying too much for car insurance, see that they shop online before making a final decision on a new policy. An elderly person may be paying high premiums just because they can’t conceive of buying insurance from anyone but the same insurance company they have used for decades. But that insurance company may no longer meet their needs. Just like seniors deserve the same coverage as younger drivers, they also deserve to benefit from the savings that are out there. They just may not know how to find the discounts on their own.

This information is courtesy of Accurate Auto Insurance, providing discount auto insurance for drivers young and old.