If you were involved in a car accident that left you injured and sidelined from work, you may be struggling to make ends meet. The last thing you want to hear is that your auto insurance company is denying your claim. Unfortunately, there are dozens of reasons why an auto insurance provider might deny your claim, and it is important that you are familiar with them so you can be confident that your claim will be approved if you ever have to file.
Let’s examine a few of the most common reasons why auto insurance carriers deny claims:
1. You Missed Your Premium Payments
Your auto insurance policy is essentially a contract between you and your provider. While your provider agrees to pay for covered damages up to your policy limits, you agree to pay your auto insurance premiums on time. If you fail to do so, it is likely that your car insurance company will deny your claim.
Missed premium payments are one of the most common (and easily avoidable) reasons why car insurance claims are denied.
2. You Lied On Your Insurance Application
For many drivers, car insurance takes a major bite out of their monthly budget. To reduce this expense, some motorists act deceitfully and lie to their insurance company about their accident history, DUI history, annual mileage, or other important details. If you file a claim and your insurance company discovers that you lied on your application, your carrier will most likely deny your claim.
3. Your Auto Insurance Policy Does Not Cover The Type Of Damage In Your Claim
When you purchase auto insurance, you will have to specify the types of coverage you are purchasing. Although you are only required to buy coverage that meets your state’s minimum limits, there is extra coverage available for accidents with uninsured motorists and other scenarios. If you are in a collision with an uninsured driver but you rejected this coverage when you purchased your policy, you will not be able to claim those losses from your insurance provider.
4. Your Name Was Not On The Policy
If you are driving a vehicle owned by your friend or family member, your name might not be on the policy. In this scenario, you may not be covered in a collision depending on the language of the policy. Keep this in mind if someone else asks to borrow your vehicle.
Ask your insurance provider if other people are covered when driving your vehicle.
5. You Did Not Document The Scene
In order for your car insurance claim to be successful, you will need to prove that you were involved in a collision and that you incurred damages as a result. If you leave the scene without recording important information, it is likely that your insurance company will dispute your claim.
To give your claim the best chance at success, remember to take the following steps after a car accident:
- Call the police so an officer can create an accident report;
- If anyone was injured, request emergency medical assistance;
- Record the name, phone number, and insurance information of all drivers involved;
- Record the names and phone numbers of any eyewitnesses, and write down what they saw;
- Take photos of any injuries, property damage, traffic signs, and skid marks; and
- Seek immediate medical attention.
The last step is very important. Many people forego their medical evaluation because they fear the cost of visiting the doctor. This can prove to be a costly mistake because you will need evidence of your injuries and medical bills if you intend to include them in your claim. If you put off your medical evaluation, your insurance provider may say that your own negligence contributed to the severity of your injuries or that they were caused by something else.
6. You Waited Too Long To File Your Claim
Each insurance company and each state has specific time limits for filing a car accident claim. As a rule of thumb, it is best to contact your insurance company and report the collision as soon as possible.
As you can see, there are many reasons why a car insurance company might deny your claim. If you are ever involved in a collision, it might seem impossible to focus on financial or legal concerns, but one small mistake could put you in a world of financial trouble. Keep this information in mind if you are ever involved in a serious collision.