Auto insurance policies are issued to drivers to protect them from financial losses they may incur from motor vehicle accidents or other claims. If a person is involved in a collision and needs to file a claim with their car insurance provider, the process can be quite lengthy. There are instances when a driver may find themselves faced with a rejected claim. There are a variety of reasons as to why car insurance providers can reject claims and fortunately, there are ways that a driver can appeal these decisions.
If you file a theft claim and the insurance company concludes that the theft was due to your negligence, then that could result in a rejected claim. For example, if you leave your doors unlocked or leave the keys in the vehicle. Your claim may also be denied if you cannot present receipts or invoices to prove that your vehicle had a stereo or other electronic equipment that you reported as stolen.
Another, more serious reason as to why a claim may be rejected by car insurance providers is because of incorrect or false information. Providing an insurance company with untrue information is considered fraud and is one of the most common reasons for an insurance claim being denied.
Other insurance claims may be denied because the insured fails to follow the conditions of the car insurance policy. It is imperative that you always keep all receipts, invoices, and other pertinent paperwork that relates to your claim. The police report is one of the most important documents. After a motor vehicle collision or a theft claim, the police will usually attend and take everyone's statements. They will provide you with a file number that you should pass on to the insurance company. If you don't keep your medical receipts for such services as physiotherapy, acupuncture, or chiropractic, the insurance company may refuse to pay back your out of pocket expenses.
Regardless of the reason that an insurance claim was denied, there is still hope. An insured has the right to dispute a claim refusal and file an appeal. This appeal will be reviewed by an insurance ombudsman who makes sure that both the insurer and the insured have been treated fairly in regards to the claim. The ombudsman will take over the claim and directly contact the insurance company so that you don't have to. The job of an ombudsman is to look out for the best interest of the insured. If he or she decides to resubmit the claim, then be prepared for a lengthy wait. This process can take some time which can be inconvenient to a person who has no vehicle.