Important Things I've Learned While Working with Auto Insurance Claims

I interrupt your normal house progress (or lack there of) post for an informative post that everyone should read about auto insurance. Maybe you'll find it boring, but I find the inner workings of any job, and the "behind the scenes," tips and tricks interesting. Plus, these tips can save you big money if you're in an accident.

Working with auto insurance claims has been fascinating. I've learned so much that is so important, but that hardly anyone knows. So, I figured I'd share a few tips...

There is no such thing as a no fault accident.
The roads were bad due to weather, neither party saw the other, the officer said it was a not at accident for both parties- we've heard it all, but regardless, there is no such thing as a no fault accident. Someone is always at fault, and many times fault/negligence is shared. If the roads are bad due to weather, you have a duty to either drive slowly and with extra care due to those conditions, or, if they are still unsafe, even when driving slowly, you have the duty to choose not to drive. As for the officer, he may not write anyone a ticket, but someone was still at fault.

It's not always 100% one person or 100% another person at fault.
Many times there are percentages of liability assigned. It is the job of the liability investigator at both insurance companies to determine who is at fault, and to what degree. Both insurance companies come up with a determination independently, and then duke it out later when recovering the losses paid out. When determining liability, the following pieces of evidence are used: statements from both drivers, the police report, and photos of the damages to both vehicles (the photos are the most important, and your insurance company (or the other, if you go through them directly) will take them when you get your damages appraised).

The officer may have said you're not at fault, but that doesn't mean your insurance company will agree.
The officer wasn't there (at least not typically). (S)He didn't see the accident and doesn't know exactly what happened. (S)He is just going based on what they see and the statements from both drivers. Both insurance companies involved will use the police report as a piece of evidence, but it will not be the only thing considered.

You need to call the police.
Many times they won't come out for accidents without injury, but if you can get the police to come to the scene, you should. There are situations where someone will deny being involved in the accident, and, if they have no physical damage to their car, and you don't have a police report to prove that there were there, you will have a difficult time recovering the losses paid out on your claim.

Where you live has a big impact on what kind of coverage you should have.
Different states have different laws for handling the percentages of negligence assigned in an accident. This can be important when you're deciding on whether or not to have collision coverage on your vehicle. Some states, like Maryland, for example, are contributory negligence states. That means that if you contribute even 1% of negligence to an accident, you do not have the right to recover any losses paid out on your claim. Florida is a pure comparative state, which means you can recover any percent to which you are not negligent from the at fault party. Example- If you are in an accident and the other party is 90% at fault, and you are 10% at fault, you can recover 90% of your damages from their insurance company, and they can recover 10% of their damages from your insurance company.
Quick tip: many people chose to drop collision on older vehicles, but the older your car is, the cheaper the coverage is. Do you really have the money set aside to replace it or put a down payment on a new car? If not, you should have collision coverage.

Can you live without your car for a week or 2? If not, you need a rental endorsement.
When your car is in an accident, and is in the shop being repaired, it's likely that you will still need to get around. Adding a rental endorsement to your policy means that your insurance company will pay for a rental while your vehicle is being repaired as a result of a claim. Do you drive a mini van or SUV? You'll need more than the minimum $30/day for that. You'll likely need $45 or $60/day to cover a comparable vehicle.

Low liability limits could ruin our life.
Let's say something happens. Maybe you have a heart attack while driving and run a red light, or you're jamming out to Shake It Off by Taylor Swift and you don't notice that the person in front of you stopped and you hit them. Shit happens, and sometimes you're at fault. That's why you have insurance, but if you don't have enough insurance, it could negatively impact your life forever. The state minimum in Florida for liability property damage coverage (ie- the money that your insurance company will pay for the other people's property damage) is $10,000. If you total a 2015 Mercedes, you're going to be above that limit. Your insurance company will pay up to your policy max, and anything above and beyond that, the other party can go after you personally for. They can sue you for everything you own, and garnish your future wages. You also need to make sure that your liability bodily injury limits are high. As a rule of thumb, home owners should have at least $100K in liability property damage insurance and at least $300K in liability bodily injury insurance.

Your fancy stereo and rims are probably not covered.
If you have any after market customizations on your vehicle, even those added by the dealership when new, they are not covered under your policy. Your policy only covers items that are permanently installed in your vehicle and come from the factory. Customized equipment and after market ad-ons can be covered if your purchase a customization endorsement.

Recovering your deductible is not an overnight process.
So let's say you're in an accident and you're not at fault, or not completely at fault, and you go through your own carrier. Depending on the type of accident, your insurance carrier will likely have you pay your deductible up front, and then reimburse you for it after they have recovered the losses paid out on the claim. This is called subrogation. It's a legal process, and can take time. We cannot start the process until we have paid out on your claim, and  once we do, we will not get anything back from the other insurance company until they have completed their liability investigation. Sometimes, the information they need in order to do so, they don't get until we start the subrogation process. Long story short, this process takes time. Don't worry, we're working on it for you. We want our money back too, and we want to keep you happy, but it's going to take some time, so be patient.

The Better Car Replacement endorsement is worth every penny.
Many insurance carriers offer some sort of Better Car Replacement endorsement. I added it to my policy for like $1.36/month--super cheap. The thought process behind the endorsement is, if your vehicle is in an accident and is deemed a total loss, your insurance carrier will pay for a better vehicle than your vehicle. I'm sure different companies work it differently, but the company I work for pays you for a vehicle that is 1 model year newer with 15,000 less miles. Because the selling price of your vehicle (which is the driver of the value of your vehicle that your insurance company will pay you when your vehicle is totaled) is often going to be less than the replacement cost of your vehicle (think dealer mark-ups), this endorsement can ensure that you get back into what you had.

You need GAP insurance.
The minute you drive your vehicle off the lot, it loses value, but your loan doesn't go down to match that. In fact, the first few years of your loan, you are only paying interest. If your vehicle is totaled in an accident, and you are upside down in your loan, GAP insurance, which is often purchased when you purchase your vehicle and is wrapped into your loan, covers the difference between the value of your vehicle (which is what your insurance company will pay you), and the amount of your loan. If you do not have GAP insurance, you will be responsible for the balance of your loan even though you do not have that vehicle. Suckie!

Your car isn't in mint condition, and it's not worth as much as you think it is.
Unless you purchased your car as new in the last month and haven't done anything to it, your car isn't perfect. There are glass chips, paint scratches, and parking lot dings that you haven't noticed that our appraiser will. Furthermore, the value of your vehicle is effected by where you live, mileage, and condition (like those dings). It's probably not worth what you think it is. And never, ever, tell an adjuster that your vehicle is in mint condition, or they will think you are an asshole, because it is not.

My last tip is to call me when you are in an accident. I can walk you through the process. It's your insurance company's job to do that, but there are flaws in every system- new people, new processes, people who don't explain everything, etc.- I'll be more than happy to help you. :)

#Japan2015

Going to Japan was, by far, the most incredible experience of my life.

As many of you know, I'm a fanatic member of the Orlando Runner's Club. What you may not know, is that the Orlando Runner's Club (ORC) has a sister running club, the Uraysu Runner's Club (URC), in Uraysu Japan. As a part of the sister running club program, the URC sends runners here every year to do the OUC Half in December, and we send runners to Japan to do the Tokyo Bay Uraysu City Marathon (which is currently a 10k as the city rebuilds after a natural disaster). This year I was selected to go to Uraysu along with another ORC member and her husband.

Arriving in Japan was awesome. The flight was long, but the moment we stepped out of customs, we were greeted by a group of friends with smiles.

That night they had a welcome dinner for us at a restaurant in the mall that was attached to our hotel. It was great to see old friends and make new friends.

The next morning we had a special meeting with Uraysu's mayor, Mayor Matsuzaki. I gave a short speech in Japanese (and I was SO NERVOUS), and we exchanged gifts with the mayor.

Speech Time!

The awesome origami ram (because it's the
year of the ram) my dad made for the mayor

After our meeting with the mayor, our URC friends took us sight seeing in Tokyo. It was a cold day with a "wintery mix," of rain and snow with a high layer of fog. But we didn't let the weather get us down. First we went to the top of a tall building so we could see around. The fog prevented us from being able to see everything, but we could still see many of the beautiful landmarks in the area.

From that viewpoint, we could see our next stop, the Sensi-Ji Temple.

It was a really cool place. There is a long alley leading up to it that houses many shops that sell all sorts of goodies, souvenirs, and trinkets. The Temple itself is beautiful.

Buddhist temples and shrines are nothing like what I would have imagined. I would have pictured them as being, essentially, like a church, except maybe more ornate. Buddhist temples though are like attractions for both tourists and locals. They feature beautiful and symbolic statues, golden Buddha statues, and a million little things you can do for a few yen.

One such thing is fortune telling. Here's how it works:
Step 1- put some yen in the box.
Step 2- Shake the heck out of this can thing that has a bunch of little numbered sticks in it until one comes out of the tiny little hole.

Step 3- Find the drawer with the same number on it as was on your stick, and grab your fortune.

Step 4- Get really confused and kinda irritated because your fortune is bad (lol). But don't fret because apparently they're all bad, and there's one more step to get rid of your newly purchased bad luck.
Step 5- Fold up your piece of paper lengthwise, and tie it on the wire with all the others, and Poof! The Buddha will turn your bad luck into good luck, and it worked. Just as we were leaving the temple, a huge piece of ice slid off the roof and juuuuuussssssst missed me. My new found luck was the joke of the rest of the trip, and was totally worth a few yen.

After some chilly sightseeing of the temple grounds and some shrine pit stops...

 we were off to Tokyo tower! Tokyo tower is like a mini version of the Eiffel tower, and was a gift from France to Japan.

On our way to dinner, we went to Ginza, which is like Tokyo's version of 5th Avenue in New York- fancy shops and fancy people.

That night, we had mange for dinner we had manga, and it was quite the experience. The restaurant was the kind where you take your shoes off and sit on the floor. Manga is a food you make yourself on a cook top on your table. And it's an endless experience, lol. Like, 2 and a half hours, 8 courses, lots and lots and lots of food.

The next morning was training day. We joined the URC for their weekly training and stretching, and even hung out with the Turtles- the URC children's running club.

 Next up, we went to the Meji Shrine. It's a beautiful shrine surrounded by natural beauty.

Barrels full of sake donated to the shrine... yum!

Selfie Stick goes international!!

Hand cleansing for purification

There was a traditional Japanese wedding going on while we were there!

After the Meji Shrine we went to Harajuku, which is the young fashion district. It's also the most crowded place I've ever been.

You order your crepes by number

Harajuku is also famous for their scrumptious crepes.

Strawberries, strawberry ice cream, and cheesecake crepe, YUM!!

The last stop of the day was Shibuya, which is Tokyo's version of times square, and home to the world's busiest intersection.

The next day was race day! We ran the Tokyo Bay Uraysu City 10k. It was SUPER windy and cold, but it was a beautiful course filled with great friends.

 

Mt. Fuji

That night, the URC had an awesome party, and they dressed Marissa and I in kimonos.

The after party was karaoke! Japanese karaoke is a bazillion times better than American karaoke!!

The next day we went to Kamakura, which is a city with very old, beautiful temples, and the Big Buddha.

Gorgeous Japanese-style garden

The Pacific Ocean

That night Azusa, Marissa and Dean's homestay, threw us a party at her house, and, since we "honored," our guests with a beer bong in December, they busted out beer bong glasses for us!

The last day, Rina, my home stay, planned a day in her hometown, Narita. First we went to a really cool outdoor museum. It had a model village to show what villages used to be like. We made rice cakes the old fashioned way.

...and we became samurais!

My home stay Rina and I

A traditional dress worn over your
wedding dress after you get married

After building up the hunger of a samurai, we went to a lunch at a place with the food on conveyer belts.

Even with a flight taking us home in a mere few hours, we still weren't done. February 3rd is the first day of Spring, and they welcome Spring with the Setsubun, aka Soybean Throwing, Festival. We went to a Setsubun Festival at a temple in Narita.

The guys in pink are champion sumo wrestlers, and all the
girls were gaga over them, lol

Selfie Stick strikes again!

The complete explanation of the Soybean Throwing Festival is a bit fuzzy, but from what I understand, they are welcoming in life and warmth and happiness with the coming of Spring. The reason for throwing the roasted soybeans is to cast out the devil/evil/bad things and bring in happiness. In these festivals, celebrities, high ranking religious officials, and people with lots of money (they have to pay like $10,000) throw soybeans at a large crowd. If someone in the crowd catches the beans, they will have good luck and fortune.

After the festival it was time to take the long flight home. I will never forget this incredible journey, and I will always cherish the memories I have with my wonderful Japanese friends.