Having a car accident can be a physically and emotionally traumatic event. In addition to this high cost, it can also be detrimental to your finances. This is because a car accident is not a financial event – you will have to pay for medical care, car repairs, legal fees and various other costs. Additionally, your car accident may lead to a case where your insurance claim may be denied or you may be required to pay higher premiums when you renew your auto insurance policy. Here’s how an accident can affect you, from your medical care to your insurance policy, and what you can do about it.
follow the protocol after a car accident to avoid problems with the insurer
the open road is getting safer in singapore, there is still a risk of being in a car accident. If this happens, there is a specific protocol you must follow to ensure you are in trouble with the law and your insurer.
Reading: What happens if you get insurance after an accident
First, you need to call emergency services, your insurer, and exchange details with the other driver. Second, you must take photos of the scene, such as any damage to the vehicle, license plates, skid marks, lane markings, debris, and provide dash cam footage. if there are injured or people requiring medical attention, you should call the ambulance or the police and make sure not to move bodies, injured or vehicles. If you are the injured one, you will need to stay on the scene and prepare to file a medical claim with either your health or auto insurer (as long as it offers medical or personal accident benefits). All claims must be filed within 24 hours of the incident.
your auto insurance may cover personal accident and medical costs
If you have a comprehensive car insurance policy, you should have coverage for personal accidents and medical expenses. This can be very helpful as medical costs can be high after a car accident, from around a thousand dollars for minor injuries to tens of thousands for serious conditions like brain injuries. Since medical expense benefits generally have a certain limit, you can use them to fill in coverage gaps left by your health insurer or Medishield Life.
average cost of treating common car accident injuries
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Personal accident coverage is slightly different and will be paid based on the severity of your accident. for example, you will receive 100% of the benefit if you permanently lose sight in both eyes, but 50% of the benefit if you lose sight in only one eye. filing a claim under any of these benefits will not affect your ncd.
your claim may not always be fully covered
Depending on the type of accident you have, you may be required to pay an excess (an out-of-pocket cost you must pay before your insurer covers the rest of the claim) or your claim may be denied. each circumstance will be evaluated on a case-by-case basis, so even in small accidents, it is often better to file a claim than settle privately. however, if you settle the claim privately, you should be sure to submit a private claim settlement form to your insurer. In most cases of private deals, your ncd will not be affected.
That said, there are certain cases where your claim will be denied outright. For example, if it is determined that you have been under the influence of drugs or alcohol, your claim will be denied. Likewise, your claim will also be denied if your car is found to be unroadworthy, your car accident was caused by your committing a crime, or you were negligent.
To give your claim the best chance of success, remember to read your policy document carefully, submit all of your documents, and include supporting documents where appropriate (ie a sketch of the accident or pictures of the accident). If your claim was denied and you want to appeal the decision, you must first understand why your claim was denied. if it is due to lack of evidence, you can appeal directly to the insurer. If your claim is continually denied or is not due to a lack of evidence, you may need to appeal to the financial industry dispute resolution center.
Your annual car insurance premiums could go up
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If the car accident was your fault, then your premiums may increase when you renew your policy. this is true even if you only damage your own car, like hitting a fire hydrant. In addition, your no-claim discount (NCD) may also decrease, reducing the discount you’ve been enjoying on your premiums. That said, your auto insurance premiums will generally not go up if the accident was not your fault, in situations where your car broke down and you needed roadside assistance, or if your windshield was damaged.
If you file a fault claim after an accident, your annual premiums could increase by between 24 and 300 Singapore dollars, depending on the auto insurance policy you have. Plus, if you have two at-fault claims, you could see an increase of $1,000 or more in your annual premiums and your NCD could drop back to zero.
take advantage of safe driver benefits to reduce accident-related costs
If you’ve been a safe driver all your life and want to protect your hard-earned premium discounts, you should consider adding an NCD Protector benefit the next time you renew your auto insurance policy. For example, Directasia’s NCD Protector will “protect” this discount even if you have an accident in which you are at fault (unless you were under the influence of drugs or alcohol). In either case, be sure to check the wording of your auto insurance policy to see how well your discount will be protected.
Without an ncd protector, you would lose your discount after accidents where you were at fault. this means that it would have to go years without an accident to reach its previous discount levels. the small extra cost of s$100-s$150 on your annual premium could end up saving you hundreds of dollars on your premium when you renew your policy in the year after the accident. therefore, this feature can be a saving grace for drivers who have spent years practicing safe driving but were in an accident in which they were found to be at fault.
See also: Does Insurance Cover a Crashed Car and Will My Rates Go Up? – ValuePenguin
Although it is impossible to completely prevent car accidents, practice safe driving for your health and wealth
Car accidents can happen, and at the end of the day, the most important thing is your recovery. Although it is impossible to prevent accidents, the best thing you can do to reduce your risk is to be a safe driver. Driving safely will not only lower your chances of dealing with costly accident-related medical problems, but you’ll also save money every day in so many ways, from saving on gas to paying cheaper insurance premiums and enjoying insurance discounts. /p>