Why is my car insurance claim denied? | Policy Advice

Let’s talk about an essential aspect of every car owner’s life: car insurance, and more precisely, let’s discuss why an insurance claim can be denied. We will also cover things you can do if the insurance company denies your claim.

Top Reasons for Car Insurance Claim Denials

If your claim is denied, you will receive a denial letter stating why your auto insurance will not pay. Fortunately for you, you do not have to accept this as a final judgment and can challenge the grounds for denying the claim. rejections often occur due to a lack of substantiated facts.

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Let’s take a look at the most common reasons an auto insurance claim may be denied.

reason 1: car accident damages from drunk driving

If you are involved in an accident while driving under the influence of alcohol or drugs, the auto insurance company will most likely deny your claim. however, if you don’t tell the insurance agent about the dui, you risk getting into more significant trouble.

wondering if there are any exceptions? yes, but it is complicated, since you will have to prove that you were not under the influence of alcohol or drugs, or in other words, you will be guilty until proven innocent.

reason 2: the driver who caused the accident does not have insurance

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If you are in a car accident with an uninsured motorist, your car insurance may refuse to pay the claim. Another reason the auto insurer will not pay is during a hit and run situation.

Reason 3: The at-fault driver’s insurer denied your claim

When another driver is at fault for the accident, your auto insurance may deny the claim. There could be a number of reasons: lack of coverage or providing incorrect insurance details.

Reason 4: You didn’t file your claim on time

In the unfortunate event of an accident, first seek help for all injured persons as soon as possible. then report it to the police, take pictures with your phone, call the insurance agency and report the accident. If you fail to report the accident in the allotted time, your auto insurance claim will be denied.

reason 5: your claim was denied in bad faith

Being denied an insurance claim in bad faith means that the insurance agency lacks adequate evidence to make a proper decision. You have grounds to appeal if this happens.

reason 6: you did not provide proof of your losses

Proof of loss must support your auto insurance claim application and if you refuse to provide it, the claim will likely be denied. Proof of loss can be a medical bill, auto repair bill, police report, and similar documents.

reason 7: the condition of your vehicle played a role in the accident

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An auto insurance claim will be denied if you drive a defective vehicle or if you use your vehicle for purposes not stated in the insurance policy. In addition, if you have been negligent with your car or have made modifications that you have not reported to the DMV, you risk having your auto insurance claim denied.

Reason 8: You made a false statement when filing your claim

all auto insurance claims must have the correct information. If you enter false information by mistake or on purpose, your claim will be denied and you may also be found guilty of misrepresentation. It is illegal to lie on your auto insurance claim. however, if you make a small mistake, such as entering the wrong date of birth, it can be easily fixed.

reason 9: You have not done everything necessary to protect your legal rights

In the event that your insurance claim is denied, you have the option of filing a lawsuit against the insurance company. You can sue them for bad faith insurance practices, breach of contract, violations of your state’s insurance code, and more.

Reason 10: You have not responded to requests for information about your claim

When filing an insurance claim, you will be required to submit supporting evidence for your claim for a specified period of time. Your auto insurance claim will likely be denied if you do not respond to this request on time.

what to do when your insurance claim is denied

in conclusion

While many insurance claim denials are valid, in general, insurance companies will do everything in their power to deny a claim and save money.

Now that you know the most common reasons why this happens, you can take all the necessary steps to prevent your auto insurance application from being denied.

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