This is what your insurance company does not want you to know

This is what your insurance company does not want you to know

• September 28, 2011
• By Gerard Devita
• 

Navigating the insurance landscape can be complex and, at times, frustrating. There are several facets of the insurance process that companies may not readily disclose to policyholders. Understanding “what your insurance company does not want you to know” can significantly empower consumers, helping them make informed decisions and secure better outcomes.

Keep reading to learn the lesser-known aspects of insurance policies. At Carner & DeVita, our Suffolk County personal injury lawyers are here to guide you on legal, viable tactics for maximizing your claim. Call (631) 543-7070 or contact us online to schedule your free consultation today.

What car insurance companies don’t want you to know

Car insurance companies have a myriad of practices and clauses that they prefer to keep under wraps. Here are key insights that Carner & DeVita believes every car owner should know.

The right to choose your repair shop

After an accident, many insurers will direct you to their network of pre-approved body shops. However, in New York, you have the right to select the repair shop of your choice under the New York Insurance Law § 2610. This statute ensures that you can choose where your vehicle is repaired, despite the insurance company’s recommendations.

Diminished value claims

Insurance companies rarely inform customers about the possibility of filing a diminished value claim, which is a claim for the reduction in your vehicle’s market value after an accident, even after repairs. New York allows for diminished value claims, but understanding how to navigate and negotiate these claims can be challenging without legal help.

Non-OEM parts

Insurers might push for cheaper, non-original manufacturer (OEM) parts to save on repair costs. Policyholders, however, are often entitled to demand OEM parts, especially if it’s stipulated in their policy.

Insurance companies hope you don’t know this trick

A particularly useful yet underutilized strategy involves the “Appraisal Clause” in your insurance policy. This clause can be a powerful tool in disputes regarding the value of a claim, especially in cases of property damage or total losses. Here’s what you need to know.

Appraisal clause

If there’s a disagreement on the value of a damaged item or the cost of repairs, either party—the insurance company or the policyholder—can demand a binding appraisal. Each party selects an appraiser, and the two appraisers choose an umpire. The appraisers then submit their estimates, and if they can’t agree, the umpire makes a binding decision. This process can often lead to a higher payout than initially offered by the insurance company.

Leveraging the clause

Many policyholders are unaware of this clause, and insurance companies might not highlight it as an option. By invoking the appraisal clause, you can avoid prolonged disputes and potentially secure a better compensation deal without resorting to litigation.

Carner & DeVita is here to empower you against insurance pitfalls

By understanding “what your insurance company does not want you to know,” you can better protect your interests and potentially enhance the benefits of your insurance coverage. Carner & DeVita emphasizes the importance of being informed and prepared to assert your rights within the framework of New York insurance laws.

For those facing issues with an insurance claim or who need guidance on navigating the complexities of insurance settlements, consulting with experienced legal professionals like Carner & DeVita can provide the necessary support and advocacy needed to achieve favorable outcomes.

Related articles for further reading

• Should I speak to the other driver’s insurance company?
• How long does a car accident affect your insurance in New York?
• How long does a car accident stay on my record?