Friends,
It happens every summer. One morning you walk to your car and it looks as if some wearing golf spikes did a tap dance on it.
Hail storms are just one of the prices we are willing to pay to live in our beautiful state, but it doesn’t less the sting when it happens to us.
Summer storms can cause all kinds of serious damage to automobiles: Damage to the exterior and glass, flood damage to the engine and interior areas, wind-driven debris damage, damage from fallen trees or tornadoes.
Times like these are why it’s important to have good auto insurance. Coverage for these types of losses is provided by your policy under the "Comprehensive" portion of the auto policy. Some policies call this coverage "Other than Collision".
Here are some tips to make this process a little less painful.
How to File and Settle a Claim
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Call your agent or the claims processing center listed on your "MN Insurance Identification Card."
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Document the damage with photos.
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Obtain estimates from repair facilities. Your insurance company may want more than one estimate including one from their preferred facility or claims center.
Repairing Your Vehicle
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If the repair estimates are less than the value of the auto, the insurer will likely proceed to pay for the repairs. Generally repair of the auto is made by using parts of the same year and manufacturer as the damaged auto (used parts). You cannot be required to accept "after-market parts."
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You may choose your own repair facility. However, if that facility is not the low estimate, you may be responsible for paying the difference.
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If the windshield and windows are damaged, original equipment glass is not required to affect replacement.
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Hail damage can be repaired using the dent-less paint repair procedure. If the procedure does not repair the damage, replacement of the damaged parts would be required.
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You can ask for cash in lieu of repair if you don't have a lien holder. However, the insurance company may subtract the profit/overhead that is in the bid of the repair facility. (You can't profit from a claim).
Determining the Market Value of a Totaled Vehicle
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If the estimate of repair is close to the market value of your auto, the insurance company will begin to consider declaring it a total loss.
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Minnesota law requires insurance companies to pay "the cost of a comparable auto, adjusted for mileage, condition and options in the local market place of the insured" (with all applicable taxes and license fees). Usually this is determined by checking internet sources such as CarSoup.com, cars.com, AutoTrader.com and the local newspaper. An insurance company can obtain a market survey of recent sales of comparable autos from a vendor.
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If you disagree with your insurance company over the market value of your totaled vehicle, check with them about whether you can request the "appraisal process." Both you and the insurance company hire appraisers. If the two appraisers can't agree, they jointly hire an umpire to make the decision. You pay for your own appraiser and one-half of the umpire fee.
If you find yourself in need of some additional help, the Minnesota Department of Commerce has resources that will provide it. Its Consumer Response Team is there to make things easier for you as you try to dig out after the storm.
If you have a problem with your insurance company, call the CRT. A representative will available between the hours of 8 a.m. to 5 p.m., Monday through Friday. To contact CRT, call (651) 539-1600 or (800) 657-3602 in Greater Minnesota. The email address is consumer.protection@state.mn.us.
If you are unable to resolve a problem or complaint with your insurance company, the CRT may be able to help. The Minnesota Department of Commerce investigates written complaints against licensees. Investigations seek to determine if there has been a violation of current Minnesota statutes or rules. If a violation has occurred, administrative sanctions (license revocation, fines, etc.) may be taken. The Department attempts to secure the payment of claims or obtain refunds for consumers who have been victimized by licensee misconduct.
When filing a complaint:
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Write, in your own words, the details of the dispute
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Include as many details as possible such as dates, what was said, policy and claim numbers, etc.
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Provide copies of relevant documents
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Include your phone number and return address
Know Your Rights
To fully understand what your insurance company MUST and CANNOT do when processing your complaint, visit our Know Your Rights page and contact a CRT representative with any questions.
We here in District 54A are a family. When something bad happens to one of us, the rest of us are there to help out. If you find that you need my help, don’t hesitate to contact me. I can be reached by phone at 651-296-4342 or by email at rep.dan.schoen@house.mn. Constituents can also visit my legislative page and sign up for email updates.
Take care,
Dan