You take car insurance to protect you in case of accidents or incidents. If you get into a situation, the company should compensate you. That is what you expect at all times, right? Well, forgive us for putting a damper on your thought process.
You see, there are times when the underwriter can deny a claim. And, in most cases, the law will back them up. Now, the money you were counting on is not available. You find yourself in a tough spot, trying to get by as you fight the underwriters for settlement.
The good news is there is a way you can get by during this time. Car accident loans provide fast and affordable funding. Best of all, the lenders do not use your credit score to determine eligibility. That means you enjoy competitive interest rates, even with a bad credit score.
Let’s look at some reasons why insurers can deny your claim and what to do about it.
1. Negligence is the Reason for the Accident
Accidents can occur due to negligence on your part. The underwriters can reject the claim if you could have done more to avoid the situation.
You had a little too much to drink. Instead of taking a cab home, you decided to drive. Bad idea, the insurance company will deny any claims if you get into an accident.
Reckless driving, such as speeding, is another reason. Did you perhaps give your car to unauthorized users? Was the vehicle in a roadworthy condition? Does the car have necessary safety equipment, such as winter tires for snowy days?
Were you inattentive while driving or ignored traffic lights, and so on? You must present a strong case to show that you took the necessary precautions to avoid accidents.
Remember, insurance companies are in the business to make money, not to dish it out. They will protect their interest in whichever way they can.
Do observe the necessary precautions when operating your vehicle. It is not only about getting approvals for claims. Instead, focus on the bigger picture, which is saving your life.
2. Ignoring Premium Payments
The only way to keep your policy active is to pay your premiums. Failure to do so will render your policy inactive. Do take note of the payment dates. As long as the accident occurs outside of the coverage period, they will deny your claim.
Yes, that means if your policy expires at midnight. And, you have an accident at 12:30 a.m. the cover will have elapsed. The insurer will deny your claim.
Always ensure your policy is up to date. If you had renewed the cover a day before, the insurer would have had no choice but to cover the 12.30 a.m. accident.
3. The Policy Only Covers Specific Areas
When taking insurance, take the time to understand what it covers. There are many types, including damage liability, third-party, comprehensive, and collision coverage.
Different states have different requirements regarding insurance coverage for auto vehicles. Some are mandatory, depending on the state.
Others are optional, depending on your preference as the car owner. Third-party liability, for instance, will only cover damages to the other party. That means you must meet your costs for damages, medical bills, and so on.
Also, have clarity on personal vs. commercial insurance covers. If the underwriter finds out that you have been using your personal vehicle for commercial purposes, they can deny your claim.
Say you want to make a little money as an uber driver on the side. Ensure you disclose the information to the insurer. The insurer will deny any claims that your policy does not cover.
Do take the time to read the policy documents carefully. Do a little research to have in-depth knowledge of insurance covers. Also, let the professionals guide and give advice when shopping for insurance.
4. Lack of Proof of an Accident
What happens if you have an accident? Of course, if there are any injuries, seek immediate medical attention. If you can, take photographs to capture damages and any injuries.
Exchange contact details in case there was another car or persons involved. If there are any eyewitnesses, get their details as well.
The next step is to report whatever happened to the police and the insurer. All these steps are critical because an underwriter can argue against a claim settlement.
You will need all the proof you can get to support your claim. Do not give any misleading information or fail to disclose pertinent information. If they catch on to what you are doing, it could land you in trouble.
5. Lack of Disclosure or Misleading Information
Underwriters require a lot of information before giving insurance. You may think you are doing yourself a favor by lack of disclosure or providing misleading information. But, you may want to avoid doing that.
You have, for example, decided to soup up your car. To further lift it off the ground, you have installed spacers. But, such may interfere with the stability of the car. When filling out the documents, you leave out this part.
Now the assessors are going through your vehicle after the accident. They find the spacers and determine they could be the cause of the accident. Since you did not indicate the modifications in the policy, it is grounds for claims denial. And, the worst part is you have no defense.
Yes, disclosing the information might have meant higher premiums. Some underwriters have no issue customizing policies depending on your needs. But, it could have saved you the heartbreak of a denied claim.
Total honesty is a requirement when taking insurance. Do talk to the professionals and ask all the relevant questions.
Final Thoughts
Taking car insurance does not always mean you will get compensation. We have shared some of the reasons why the underwriter can deny your claim. Read the policy documents very well.
Do your research and seek professional advice for the best cover. It helps to ensure that you do all you can to safeguard your interests. Even if they deny the claim, that is not the end of the world.
You can appeal if you feel you have a strong enough case. During this time, Auto accident loans can tide you over. You get funding to help with bill payments as you fight for a settlement.
