Getting insurance for your car is one of the most crucial aspects of its ownership. Even if you may not end up using it after the term completion, it still gives you peace of mind because accidents may happen any time. Whether it is bent fenders, theft, weather damage or car crashes, insurance has you covered most of the time. All you need to do is to file your claim when something unfortunate happens and the insurance company will take care of much of the expenses, except the deductible that you need to pay.
However, there are cases when the insurance claim may be denied. This could happen due to varying reasons and you need to be aware of them so that you can handle them and still get your claim. Even if your claim gets denied, you may still file an appeal against the denial and reclaim the compensation from the insurance company. Here are some reasons that could be responsible for your car insurance claim being denied.
Exhausting policy limits
When you buy car insurance, you get the choice of the coverage that you want to get and the limits to the policy that you want to buy. The claim is most likely to be denied if it goes beyond the coverage limits. This can also happen if you have already exhausted the policy limits. Therefore, when you do buy a plan, ensure that you have optimal coverage for better risk prevention.
This is why it’s best to compare car insurance companies and policies. Doing so will relieve stress and ensure peace of mind with regard to policy limits. To start, you can check out this farmers insurance review to get an idea of coverage options.
Non-payment of premium
Paying the insurance premium on time is extremely important because failure to do so can result in a poor insurance history and you may even end up with a canceled contract as well. In case you get into an accident at the time when the premium was unpaid, the provider has a right to deny the claim irrespective of the fact whether the reason for the missed premium was genuine or intentional.
Avoidable accident
If the insurance company believes that the accident was avoidable and caused due to the negligent behavior of the driver, you can expect a rejection of the claim. If you think otherwise, you may file an appeal. When you request an internal appeal, Justin Kimball from www.preszlerlaw-ns.com explains that it means that you want your insurance company to review your claim one more time to see if it can qualify.
Provision of misleading information
The provision of misleading or false information to the insurance company makes another valid ground for the denial of your claim. The information could include your personal details as well as information related to your vehicle. Personal details cover your address, driving history and previous accidents. Vehicle details include information related to any previous damage to the vehicle and modifications made in it. These factors are essential for determining the premium value in the first place.
Accident caused by a non-authorized driver
Another reason that could be accountable for your claim being denied is an unauthorized driver being behind the wheel at the time of the accident. In fact, the insurance premium of your car may go up if you have young people in your family because this indicates that they will have access to the vehicle. If you fail to disclose their presence and they end up doing an accident, the insurance company will not give you the claim on the grounds of negligence.
Violating the law
If the accident occurs due to the violation of the law, the insurance provider has all the reasons for denying your compensation claim. This could happen in several circumstances, from an under-aged driver being allowed to drive the car to the cases of drunken driving, texting while driving, and more. If it is proved that the accident could have been avoided by following the law, you can absolutely expect a denial.
Not following the right process
Ideally, a proper process has to be followed for claiming compensation for an accident from an insurance company. The steps include reporting the accident immediately to the authorities and insurance provider, getting documentation for medical treatment expenses, collecting the requisite evidence, ensuring completion of paperwork and filing a claim. You also need to hire an attorney who can file the claim on your behalf or make an appeal in case of denial. Not following the right process weakens your case and increases the chances of a denial.
If you want to get compensation for sure, knowing all the possible reasons for the denial and sidelining them completely is the right approach. Ensuring that you do everything right maximizes your chances of getting coverage for the losses caused by accident or theft.