Having car insurance doesn’t always mean a claim will be covered. Here are some common reasons for companies to deny claims.
You missed a payment
If you miss or are late on a premium payment, your insurance company is likely to deny your claim. The company has no reason to approve a claim on a policy that has not been paid for. Take care to make all your payments on or before their due date.
Your application wasn’t completely honest
A bad driving record can cause your premiums to go up, and it is common for drivers to change insurance companies after major incidents in order to hide their past and lock in lower rates.
However, insurance companies tend to expose certain data, giving the company grounds to deny your claim.
The damage incurred is not covered by your policy
A common misconception amongst drivers is that all car insurance policies offer full coverage. In truth, most car insurance policies can leave you hanging in a few scenarios. For example, uninsured and underinsured motorist coverage is not included in basic car insurance plans. Without this, if you are hit by a motorist without coverage or with poor coverage, you will end up paying out of pocket for your vehicle.
The driver is not listed in your policy
Do you let people borrow your car? This could be a big mistake. Many insurance companies will only insure drivers who are either named in the policy or who live at the same residence as you. If you allow a friend to borrow your car for the day and they get into an accident, your insurance company could have reason to deny your claim.
You did not document the scene of the accident
Insurance companies require proof than an accident occurred how, when and where you say it did.
Take photos and videos and record important information at the scene of an accident. If necessary, get the police involved so you can use their report as evidence. And remember: if you don’t get a medical evaluation, your insurance can deny any injury claims.
If you have any questions about your policy, speak with your insurance broker.
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