Hit by Substandard Insurance? What You Need to Know
Getting into a car accident is stressful enough, but the situation becomes even more complex when the at-fault driver carries substandard insurance. Understanding how these companies operate is the first step toward protecting your vehicle and your wallet.
What is a Substandard Insurance Company?
A substandard insurer primarily provides coverage to high-risk drivers. These individuals often have a history of multiple accidents, serious traffic violations, or poor credit scores. Because these insurers take on higher risks, they typically charge higher premiums and offer very limited coverage options. Unfortunately for you, they also tend to provide less comprehensive customer service when you file a claim.
Challenges You May Face
If a person with substandard insurance hits you, the recovery process often involves hurdles you wouldn’t encounter with a major carrier. Here is what you should expect:
1. Limited Liability Coverage
Most substandard policies only meet the bare minimum liability requirements set by the state. If your car sustains heavy damage or you suffer significant injuries, that minimum amount may not cover the total cost. You might find yourself facing a “coverage gap” where the insurance money runs out before the repairs are finished.
2. Significant Claims Delays
Substandard insurers often lack the resources of larger companies. Consequently, they process claims much slower. Expect longer hold times and delays in getting an adjuster to look at your vehicle.
3. Frequent Denial of Responsibility
These companies often contest claims aggressively. They may attempt to shift the blame onto you or minimize their driver’s fault to avoid paying the full value of the claim.
4. Financial Instability
Not all insurance companies are built the same. Some substandard providers lack strong financial backing. In the worst-case scenarios, insolvency can delay your payout for months or even years.
How to Protect Yourself
While you cannot control what insurance the other driver carries, you can control your response. Use these strategies to stay ahead:
- Leverage Your Own Policy: If the other party’s coverage is insufficient, use your Underinsured Motorist (UIM) or collision coverage. Your insurance company can pay for your repairs and then pursue the substandard insurer for reimbursement (a process called subrogation).
- Document Everything: Take high-quality photos of the damage, the street signs, and the other driver’s insurance card. Always call the police to ensure there is an official accident report.
- Maintain Persistence: Since these companies are slow to respond, you must follow up regularly. Keep a log of every phone call, the name of the representative you spoke with, and the date.
Take Action Today
Navigating a claim with a high-risk insurer requires patience and professional support. You don’t have to fight these companies alone.
Were you hit by someone with substandard insurance? Don’t let a “cut-rate” insurance company dictate the quality of your repair.
Call Sharp Auto Body at 847-526-1343 today. We will help you navigate the process, document the damage accurately, and get your vehicle back on the road safely.
