You met with a car accident, and you filed a claim with your car insurance provider, but unfortunately, they denied your claim. You were not expecting this from your insurance company. You bought a cheap car insurance policy from your provider but, they didn’t accept your claim. Read this guide to know the reason behind the denial of your claim.
Listed below are the 6 main reasons why car insurance claims are getting denied:
- You are At-fault for the accident
- You didn’t get any medical treatment
- Insufficient coverages to cover your damages
- You didn’t inform to the insurance company
- It’s an illegal activity
- Denial made due to bad faith
Let’s dig a little deeper into each point so you can understand them easily.
- You are At-fault for the accident
If you violated the terms of your coverage, your insurance company is not obligated to pay your claim. It’s important to understand how your insurance policy contract works. The company will not pay if you were at fault for an event that wasn’t covered in your insurance policy. - You didn’t get any medical treatment
It can take days or weeks for injuries to appear after an accident. The crash may not be proven to be the cause of your injuries if you do not have an immediate evaluation of your condition. When you cannot prove that an injury occurred as a result of the crash, the insurer might refuse to pay for treatment. - Insufficient coverages to cover your damages
Making sure your insurance policy meets your needs is crucial. You may be able to have your claim paid up to your policy limits if the damages exceed your policy limits. However, your insurance company may deny your claim if the damages are beyond the policy limits. - You didn’t inform to the insurance company
After a crash, you need to notify your insurance company. However, your claim wasn’t filed within a given period; car insurance companies may deny your claim for this reason. Always file a claim immediately after an accident. - It’s an illegal activity
It is possible that you violated the law when you were involved in an accident, so your insurance claim was denied. You will not be covered by your insurance policy if you engaged in illegal activity. If you are engaging in a commercial activity, check your insurance policy for coverage. - Denial made due to bad faith
A bad faith claim denial means the insurance company denies your claim for reasons that are not valid or unethical. Bad faith lawsuits are based on a breach of contract. Bad faith refers to an insurance company’s refusal to pay a claim when there’s no authorized reason to do so.
Over To You!
It is very frustrating to have your car insurance claim denied. We hope this guide helps you to know the reasons why your insurance company denies your claim. Despite paying a high insurance premium, the insurer has denied your claim. Did you know? You can save money by switching car insurance companies.
