Car insurance quotes provide information about the policy you have purchased; however, they do not go into finer detail such as disclosing when an auto insurance company might repeal or deny coverage. The insurance policy spells out all of the terms and conditions. When a claim is filed, the car insurance company conducts an investigation. If the investigation determines that there was no coverage under your policy, then they send a coverage denial letter.
I was rear-ended. Am I covered? I was driving a rental vehicle. Could my claim be denied? My son's girlfriend wrecked his car. Is it covered by my insurance?
Customers who experience a traumatizing car accident often have more doubts and fears than family and friends are able to address. No one ever really thinks about car accidents and car insurance until they experience a loss. Then, it is perfectly natural to worry about how your car will be fixed and what will happen if someone was injured, especially if the loss was in any way unusual or out of the ordinary.
There are some commonly held misunderstandings and misconceptions about when an insurance company has the proper grounds to repeal or deny coverage. For instance, an insurance company cannot deny coverage simply because you experienced an automobile accident that would qualify as a covered loss under the terms of the policy. You should also be covered under your own policy when driving a rental or borrowed vehicle, or when a permissive driver is operating your car.
Of course, some claims are denied for coverage reasons. Failure to pay your premium, policy exclusions and excluded drivers are common reasons for such denials. An auto insurance company may also deny coverage due to fraud. An insured may have deliberately misrepresented the facts on their insurance application, or may be claiming false or inflated damages as part of the claim.
Car insurance quotes usually only provide the customer with the types of coverage and dollar limits which are being purchased. To better understand your insurance, it is necessary for you to study your policy. Your car insurance policy will explain what is covered and what is not. It will include a declarations page, and spell out the terms, definitions, exclusions and endorsements of the policy.
Of course, not every customer is going to be familiar with how to read an insurance policy or understand how to interpret what they are reading. When it doubt, it is advisable to call your car insurance agent with any questions or concerns. Remember that while the insured customer has the burden of proving the loss, the insurance company has the burden of proof when denying coverage.