Reasons why your Insurance Claim Has Been Denied
Sometimes the unthinkable happens, and when you’re driving your vehicle there’s always a chance of you getting into an accident. Just because you have auto insurance doesn’t necessarily mean that you’re covered, by that I mean there are chances where your insurance claim could be denied. Most of the times claims are denied simply due to the fact that a person does not respect the terms and conditions of their contract. If that ever happens that puts you in a position where you have to pay for all damages out of your own pocket. To make sure that before you start driving review your auto insurance policy to ensure that no matter what you do you’re always in the right.
But we do feel that it is important for you to understand and know why an insurance company may deny your claim.
Insurance policy limits. Remember when you select your insurance policy you have to make sure that you select the right one. Don’t put yourself in a position where you’re cutting corners on what your insurance company would cover in the midst of an accident. For example, if you have been in an accident and your insurance company has capped out on what they’ll offer you on your policy that means that the difference will be paid out in your pocket. Situations like these most of the time it’ll be better to pay the extra premium each month to give you that peace of mind later on.
Payments. Make sure to stay on time with your payments. If you miss a few payments in a row you may actually be insurance coverage by your insurance policy. If you miss payments you are known to have a lapse in insurance coverage, and two insurance companies’ individuals who have a lapse in insurance coverage are categorized as high-risk.
Filing wrongful claims. When you stretch your insurance policy make sure that you reviewed to know what exactly you’re covered for. If you file insurance for coverage tahat you don’t have more than likely it’ll be denied by your insurance company.
Customization. If you’re into upgrading your vehicle, make sure that when you’re changing out Parts on your vehicle you would have to let your insurance company know. If you customize things such as the engine, your insurance company my actually drop you as a client to avoid any risks. Be careful about what you customize in your vehicle, and run it by your insurance company before you take the next step.
Use the vehicle. If you start a new job and now you are required to use your vehicle to perform business work you do have to let your insurance company know. The reason for this is if you’re driving your vehicle during working hours to conduct business, and you get into an accident the claim may be rejected simply due to the fact that you’re using the vehicle for means outside of what it’s insured for.
These are just a few of many reasons why your insurance claim would be denied, don’t let the scenario scare you away. We strongly advised for you to review your insurance policy and I’m sure that you understand everything down to the key. By doing that you minimize the risk is having your insurance claim denied which ultimately leads you to fork money out of your pocket?
If you are looking for a new insurance policy or a cheaper rate, check out the various auto insurance companies we deal with.