Car Accident Claims Settlement
Accidents will come without warning, with three major causes being human errors, mechanical mishaps, and natural reasons. The consequences of accidents can lead to destruction and injuries, both serious and minor. There are several ways of cushioning yourself from this unforeseen misfortunes. These include obeying traffic rules religiously, respecting other road users and getting an insurance cover.
Due to the unpredictable nature of accidents, an insurance cover is your best option. In case an accident occurs, you will receive some compensation to help you ease up your pain and make things a little better for you. The million dollar question is, are accident settlements taxable? Well, these settlements are not taxable.
Process of filing an insurance claim
Informing the police
After an accident, the chances are that you will probably be shaken. It is essential to stay calm and not to flee the scene. Call the police to draft a police report which will be vital when making a claim. The officer will also ensure that an ambulance and medics are dispatched if need be. The other parties may exhibit unruly, and the officer will also make sure that you are safe.
Filing an accident report.
The paramount thing is understanding your legal accountability and fully oblige with what needs to be done. In case you are unsure, it is necessary to enquire from your insurance agent or contact relevant authorities that will fill you in with all the needed information.
Draft information about your car accident
Collecting this information will go great lengths in helping you track all the information you will need when filing the insurance claim. This information will be vital o your insurer as it will go great lengths in making the settlement of your claim easy and timely
Go ahead and call your insurance company
If you are safe, have called the police filed an accident report with the police and still, on the accident scene, you can go ahead and call your insurance company. Your insurer will always advise you what to do, in most cases, your insurer will save you from incurring unnecessary expenses. These expenses include towing your vehicle if it is not drivable; in some cases, the insurer will dispatch a car to assist you with means of transport.
Once the report is in the hands of the insurer, they will identify a claim specialist who will look into your case and make all the necessary recommendations. His recommendations will include comments about types and the amount of compensation.
The above are the primary and initial steps that are vital when making an insurance claim. Following these steps will ensure that you save time, avoid run-ins with the law enforcement agencies and save you from unnecessary expenses.
What the law says
the general rule is that you do not need to pay taxes from your insurance settlement money. This will put a smile on your face as you are going through the healing process or simply trying to get things back in order. However, in some cases, the settlements are taxable this will largely be determined by the amount of compensation in your settlement and the losses incurred.