Why Your Car Insurance Claim Can Get Rejected

26 Oct

Your car is one of the significant assets you should always protect with insurance. But the unexpected, like an accident, can happen and force you to make an insurance claim. Once you file an insurance claim, the claim can either get approved or rejected.

As a policyholder, being aware of the reasons for car insurance claim denial is crucial to help you avoid unexpected frustrations. Read on to know what can make an insurance company deny your car insurance claim.

Failure to Notify the Insurer in Time

As a policyholder, it’s your responsibility to let your insurer know about your car accident immediately after it happens. The standard time within which one should file a car insurance claim varies from state to state. So, ask your insurance company about its reporting procedures when you purchase your car insurance to avoid missing the deadline.

Failure to Renew Your Insurance

When you fail to renew your insurance as per the agreement with the insurer, your car becomes uninsured. That means the insurance company will not cover the damages even if the accident happens one day after the expiry of your policy.

Always make your car insurance premium payments in good time to prevent the denial of your claim. You can also contact your insurer for a better payment plan to enable you to make partial payments.

Being at Fault for the Accident

Your insurance company will analyze the evidence you present to determine the possible cause of the accident. The insurer will likely deny your claim if they determine that the accident was due to intentional wrongdoings, like texting while driving or drunk driving. Also, the lack of a driver’s license can make you liable for fault if a car accident happens.

The Insurance Doesn’t Cover the Accident

Car accidents vary, and so do the types of car insurance. To prevent an unexpected denial of your car insurance claim, contact your insurer upfront and ask them what your policy covers. Also, a periodic review of your insurance policy can give you a greater knowledge of your policy and help you avoid any uncertainty.

Failure to Cooperate With the Insurer

For an easier evaluation of your claim, the insurer will likely ask you to provide certain information and documents that prove the accident. Failure to provide whatever the insurer asks for can result in the denial of your insurance claim. To prevent claim rejection or its delayed processing, ensure you provide everything the insurer needs as fast as possible.

Provision of Misleading Information during Insurance Purchase

Misleading information or an attempt to lie to the insurer during an insurance purchase is a form of fraud. Your insurance company can use any wrong information you provide to deny your claim. Whether it is information about your driving record or anything else, ensure the information you provide is accurate before you sign your insurance policy.

Violation of Your Insurance Policy Terms

A car insurance policy has certain conditions that outline how you should use your vehicle. For instance, you can’t use a vehicle covered under the private category for commercial works. Understand and comply with all your car insurance policy conditions to prevent denial of your claim after an accident.

Lack of Evidence

Your insurance company will require proof that the damages to your car were due to an accident and not any other cause. You must gather adequate evidence, like accident photos and police reports to convince the insurer that you were in a car accident.

If you take the discussed reasons and preventative measures seriously, your car insurance claim process will be successful. For affordable auto insurance in Lakeland, Florida, and satisfaction as a policyholder, reach us today at Family Insurance Centers.