If you’ve been in a car accident, having your claim denied just adds to the stress. Before this happens, you should understand the common reasons that car insurance claims are denied so you can avoid this happening to you.
Here are a few of the most common reasons for claim denial.
Policy and Coverage Issues
Unfortunately, many times the insurance company is perfectly valid in its denial of a claim because the insured party does not fully understand the policy. This is why it is important to review and understand what your policy covers, and what it does not cover. If you submit a claim for damages that aren’t covered, it’s an automatic denial.
One of the common mistakes people make is not carrying full coverage. This means collision and comprehensive coverage that are intended to protect you if you hit another vehicle, object, or if damage is done to your vehicle in other ways such as a hail storm.
If you are not carrying full coverage, and only have liability coverage, you are only minimally covered. If you cause an accident, and only have liability insurance, your claims will be denied.
Accidents Involving Violations of the Law
If you violate a law and cause an accident, your claim may be denied. For instance, if you get into an accident and you are convicted of driving under the influence your auto insurance claims will be denied.
Not Filing a Claim Immediately
If you have an accident, or notice damage to your vehicle, you must report it immediately to your insurance company or your claim may be denied. Similarly, you should seek medical attention immediately after an accident, otherwise your insurance company may suspect you are claiming damage or injuries that were not caused by your car accident. And, making false insurance claims is a felony.
Misrepresentation of Information
Even if it was not intentional, a misrepresentation of your situation while getting an auto insurance quote can lead to claim rejection. For instance, if you have your car insured in one zip code because it’s cheaper, but it is actually housed in another you could be denied if the insurer figures this out during the course of the accident investigation.
There are a few things you can do to protect yourself from denied claims. First, make sure the information you provide to obtain your policy is accurate. And after an accident, be sure to contact your insurance company right away. Exchange all the information you can with the other party, such as insurance information, license and registration, and license plate number.
And, if you’re ready for new insurance quotes, InsuranceWins can help you with our quick and easy form that will have you covered in no time.