Insurance tips: "My PIP claim is months late. What's going on?"

Q: My auto insurance was supposed to pay for medical expenses under my Personal Injury Protection (PIP) coverage, but my insurer didn't pay all the bills. They waited for two months before making a decision. What's going on?"

Our consumer advocacy hotline gets questions like this fairly frequently. Insurers should be reviewing the bills as they are received. As a general rule, we would expect that an insurer would review the bills and make a coverage decision within 30 days of getting them. If there are delays, we'd expect the insurer to be able to explain why.

If you're having problems getting your insurance -- health, auto, homeowners, etc. -- to pay a claim, feel free to contact us. We accept complaints online 24/7, and have a toll-free consumer hotline (1-800-562-6900) staffed by experts.

Insurance Q&A: "How much is a pet worth?"

We periodically field questions from bereaved pet owners who've had a pet killed by a car, only to be offered what seems like a very low sum -- typically $50 to $100 -- from the driver's insurance company.


The reality is that pet owners usually can't recover much more than their out of pocket expenses when an animal is killed due to someone's negligence. And sometimes they won't even cover medical expenses for the injured animal.

Here's why: under current law, pets are valued as property and valued at what they'd cost to replace. (That's the same way insurers decide the worth of, for example, a totaled car.) You may be able to negotiate a slightly higher payment -- our consumer advocacy staff once helped get more money for a slain goat -- but the sentimental value of a longtime pet is often much, much higher.
In recent years, there have been a growing number of cases in which plaintiffs are arguing that a beloved pet is more than just property, and that insurance payouts should recognize that.

The Wall Street Journal last week reported on a Texas case in which a shelter mistakenly put a dog to death. The owners sued, claiming emotional damage from the loss of their 7-year-old dog, whom they felt was part of their family. An appellate court ruled in the couple's favor in 2011, saying that the special value of "man's best friend" should be recognized.

The case is now in the hands of the Texas Supreme Court.

The good news: your insurance likely covers meteorites & space junk

In light of the passing asteroid and the (unrelated, apparently) meteorite that hit Russia last night, we'd point out that in the extremely unlikely event of a meteorite or old satellite crashing into your home, your insurance would likely cover the damage to you, your car, business or -- hopefully not -- yourself.

The Insurance Information Institute took a look at this issue a couple of years ago, concluding that:

"Damages caused by falling objects are generally covered under standard auto, business, homeowners and life insurance policies."

Our in-house consumer hotline folks add that if a meteor struck near a home, with no direct hit, but that the impact and shock wave caused damage, that damage too would likely be covered in a standard policy.

Again, the odds of getting hit by something like this are very, very low, although not zero. An Alabama woman was struck by a meteorite in 1954, and in 1992, a car in New York state was hit.

Insurance tips: "My insurer won't pay my policy limits!"

Q: "I turned in a valid claim and my insurer won't pay me the limits that I have on my policy. What's going on?"

A: We get this type of question a lot. The limits shown on your policy are simply that -- an upper limit that is the maximum available to you for a covered claim.

But being paid the maximum is rarely automatic. Even though it is your policy, and you've paid your premiums faithfully, you still have the responsibility to document the value of your claim. It's not at all unusual for the value of a claim to be below a policy's limits.

Industry professionals: We want your opinion on our new website

Note to agents, brokers, and insurers licensed in Washington state: We're evaluating our newly redesigned website, with the goal of making it as easy as possible for industry professionals to find what they need.

Please take a few minutes to take our online survey. It takes about five minutes to complete.

Your feedback will help us improve the website.

Thanks much.

Buying a used car? Here's a way to check if it's stolen or salvaged.

The National Insurance Crime Bureau, an anti-fraud group made up of hundreds of insurance companies, car rental companies, auto auctions, etc., runs a free online site where you can check to see if the car you're about to buy has been reported as stolen or salvaged.

It's called "VINCheck." You type in the vehicle identification number. On most modern cars, the VIN is usually a long combination of numbers and letters on a plate or tag at the front of the dashboard. It's easily read from outside, through the windshield.

VINCheck will tell you if the vehicle has been reported as stolen and unrecovered, or if it has been reported as a salvage vehicle, by participating NICB members.

A maximum of five searches are allowed from each IP address per 24-hour period.

"My homeowners insurer canceled me because I made two water claims in three years. Is that legal?"

Yes, it often is. Insurers are required to send you a written, advance notice listing the reason why they're canceling your coverage, but they're not prohibited from canceling (or not renewing) coverage due to claims.

What can you do? Well, you can talk to your agent, who may be able to work with the insurer to keep your coverage, albeit possibly with some changes.

The insurer might want you to take on a higher deductible, for example, or might want a home inspection report by an outside consultant.

If it's the latter, they'll likely be paying particular attention to the overall condition and care of the home and condition of the utilities.

If you like your insurer, it's worth at least asking the question.

Also, if you have questons like this and you live in Washington state, we're happy to contact your insurance company on your behalf and ask for an explanation of their decision. You can file a complaint online 24/7 or give our consumer advocacy staff a call at 1-800-562-6900.