1. Policy Coverage Doesn’t Apply
One of the most common reasons for claim denial is that the damage or incident isn’t covered by your policy. For example: Liability-only policies won’t cover damages to your own vehicle. Exclusions may exist for certain incidents, such as using your vehicle for commercial purposes without the proper coverage. If you didn’t opt for comprehensive coverage, damages from theft, weather, or vandalism won’t be covered.
2. Insurance Policy Lapses
If your policy has lapsed due to non-payment, you won’t be covered, even if the accident occurs shortly after the lapse. It’s important to ensure that your premium payments are up-to-date to avoid this situation.
3. Driver Exclusions or Omissions
If someone who isn’t listed on your policy was driving your car at the time of the accident, or if a specific person is excluded from your policy, the insurer may deny your claim. Always check to ensure that all potential drivers are covered under your policy. If the insurance company feels that you deliberately excluded or hid a driver, they may deny your claim for what they consider misrepresenting your driving exposure.
4. Fraudulent Claims
Insurance fraud is taken very seriously. If the insurance company believes that you’ve provided false information or exaggerated your claim, they may deny it. This could include: Falsifying details about the accident. Making claims for pre-existing damage. Exaggerating the extent of injuries or damages.
5. Unlicensed or Unauthorized Driver
If the person driving the vehicle at the time of the accident doesn’t have a valid driver’s license or wasn’t authorized to drive the vehicle, the claim may be denied. It’s important to ensure that all drivers of your vehicle are licensed and insured.
6. Vehicle Use Not Covered by Policy
Personal auto policies generally exclude coverage if the vehicle was being used for commercial purposes, such as ridesharing or delivering goods, at the time of the accident. If you’re using your vehicle for business purposes, it’s essential to have the appropriate coverage in place.
7. Intentional Damage
If the insurance company believes the damage was intentional or self-inflicted, the claim will likely be denied. This can include situations where someone intentionally causes damage to their own vehicle to collect on the insurance.
Conclusion
In summary, if you pay your car insurance premiums, have all drivers listed that are in your household included in your car insurance policy and are honest with the car insurance company, you will not have any problems with your car insurance claim being denied. We do run into a lot of scenarios where an insurance client believes a claim should be covered that isn’t a part of your contract. If you have an insurance claim that you believe should be covered, review your car insurance policy and ask the claims adjuster what provision applies or does not apply to provide coverage. For questions on your car insurance policy, don’t hesitate to reach out to us to review your policy. Happy to help!