You file a claim with your auto insurance provider. You think you have proper coverage and expect a check. It doesn't come.
Upon investigation, you find that the insurance company denied your claim.
Why did this happen? There are many potential explanations.
Here are five common reasons why you may have a denied auto insurance claim.
#1: Missing Information
It is always essential to provide comprehensive information to your insurer at the time of the claim. This includes:
- The location of the incident
- The time the incident occurred
- Photos of what happened
- An explanation for the cause
- Information about the other car involved
- The other driver's information
There are many details you need to communicate to your insurer when filing a claim. This can ensure the adjuster can make the right decision for you. Most often, the insurance denial outlines what information is missing.
#2: Lack Of Coverage
Your policy outlines the type and amount of insurance coverage you have. Keep in mind that if you do not have coverage for the claim, your insurer cannot help you. Look at the exclusions listed on your policy. Are these what caused your losses?
You may also want to consider the limits of your coverage. If the claim is over the limit, you may not receive the full amount owed to you.
#3: Information Differs On A Police Report
If you are in a car accident, the insurance company contacts the police department to get a copy of the accident report. They use this to verify the information you provide. If the report does not match your account — or discredits your information in any way — chances are good the insurer will deny your claim.
#4: Your Policy Is Not Active
If you miss a payment on your car insurance, it may become inactive. Your insurance company does not automatically renew your policy if it is late or in a cancellation period. If you lack coverage due to nonpayment for any reason, the company will not cover incidents occurring with that period of time.
#5: You Have Not Responded To Your Insurer
It's also important for you to respond to any questions asked by your car insurance company. They may contact you to clarify details. Do so in a timely manner.
Avoiding these issues can help you avoid claim denials. It is always a good idea to keep conversations open with your insurer.