Increased claims costs and litigation, coupled with high verdicts and settlements, are driving up Commercial Automobile insurance costs. Another factor behind rising insurance costs is late or unreported accident claims.
There are various reasons why waiting to file the first notice of claim with an insurance company or not filing at all increases costs. The insurer is at a significant disadvantage in investigating a claim if it comes one or two years after the incident when a lawsuit is filed. The insurer cannot promptly investigate the scene, gather evidence, or interview witnesses. This delay can lead to incomplete or less accurate information, making it more difficult to establish fault or defend against claims. The longer the delay, the greater the chance that crucial evidence (like dashcam footage, witness statements, or vehicle damage) may be lost or deteriorated, increasing the insurer’s liability and, consequently, a policyholder’s premiums.
Additionally, the longer an insurer has to resolve a claim, the more likely the issue may grow into a larger settlement or payout. Injured parties may incur lengthy medical treatments or submit additional claims that may have been avoided with quick action. These settlements and verdicts and higher associated costs impact insurer profitability and result in higher insurance rates.
Early reporting also often allows insurance companies to negotiate, settle, or handle minor claims before they escalate.
Another important issue is to ensure that you report all drivers to the insurance company before hiring them. Much too often, insurers receive late notices of claims with unreported drivers who would not have been accepted (due to violations or previous accidents) if they had been reported.
Prompt reporting of trucking accident claims is crucial in controlling costs and managing insurance premiums. Late or unreported claims lead to more expensive claims, higher legal costs, and missed opportunities for early settlement.
About Western Truck Insurance Services
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