Did you know your Auto insurance claims can be ruled out for a bunch of reasons? Even if you have lodged a claim on your car insurance policy, unfortunately, your auto insurance provider has refused to pay, it can be for a variety of causes. Some of the most common reasons a claim is rejected include the following:
Comprehensive & Collision Coverage are excluded in the policy
One common reason for a claim denial is that the policy does not have comprehensive and collision coverage. The at-fault policyholder may have chosen to lay aside money by purchasing liability coverage alone. Alas, after a collision, the policy will cover the other driver, merely not the policy owner.
Sometimes a claimant will exaggerate or lie in an attempt to get coverage, and the insurance company will reject the claim, and understandably so. Also making a claim denial, filing a fraudulent claim is thought a felony crime.
Damages may exceed the policy’s limits. If the at-fault driver’s coverage is not enough to pay all damages, the other driver involved can sue that driver directly for the amount not covered. In the end, it would have cost the policy owner more to be sure they have adequate coverage in the first place.
Premium payments are due.
An auto insurance policy can be suspended if the holder has missed even a single premium payment. This may not be obvious at the time insurance information is switched by the drivers affected.
The Driver Is Charged With Driving Under The Influence (DUI)
When a driver gets into an accident and is cited for drinking or taking drugs before or while driving, an insurance company has the right to deny any insurance claims filed.
The Accident Was Not Reported On Time.
A policy can include a deadline for reporting an accident. This is one reason why it is important to report an accident right away.
The Driver Is Excluded From The Policy.
If the responsible driver isn’t listed on the policy, or the insurance company has specifically excluded the driver to be on the policy due to a bad driving record, the claim will not be compensated.
Medical Issues Weren’t Immediately Attended
When medical help is not pursued as soon as possible, the insurance company might question if the injuries truly resulted from the accident.