Reasons That A Car Insurance Claim May Be Denied
There might come a time when your insurance provider might deny your car insurance claim. This can be extremely frustrating and you may not be very happy with the reasons given for the denied claim. They could differ based on both state laws and the individual car insurance provider's policy terms and guidelines. Generally, denied claims can be a result of omissions, misrepresentations, concealment of facts or wrong statements. Other reasons include using a vehicle without prior to permission and causing an accident on purpose.
Inadequate coverage is one of the most common reasons for a denied claim. It could have happened that in order to save money on insurance coverage, you only bought liability coverage. In such a situation, your car insurance provider will deny your claim. Another reason for a denied claim is if the driver is not included in the car insurance policy. For example, if your teenager or a friend was involved in a collision and was not named insured on the insurance policy, then your insurance claim will be denied. Giving wrong information on the car insurance claim is another common reason for a denied claim. For example, if you filed for an Uninsured Motorist Claim and the driver in the other car did have insurance, then your claim will be denied.
When you filed for the claim, maybe you overlooked the fact that your car insurance coverage had already expired or had been dropped. If you do not make payments even after the grace period, your car insurance policy will be dropped and claims made after this will be denied. When you buy a new car, your car insurance provider gives you a specified amount of time to add it to the policy. In case you forgot to do this and you make a claim for this vehicle, it will result in a denied claim. This not only leaves you with a damaged new car, you will also have to bear the expenses for the repair on your own.
Insurance companies will also deny a claim when the damages are above the limit stated on the car insurance policy. You can avoid a similar situation in the future by increasing your car insurance coverage limit. Your insurance company can deny your claim for a wide variety of reasons. Sometimes, the reasons for a denied claim may not be justified. In such a situation, you can either discuss the claim with your car insurance provider or hire an attorney to fight for justice. At other times, the only thing you can do is to learn from your mistakes and not repeat them ever again.