7 Reasons Your Car Insurance Policy Might Not Cover You After A Collision

As a driver or car owner, you’re exposed to numerous risks. But insurance policies are reliable when it comes to mitigating some of these risks. For instance, if you get into an accident and damage your car or injure people, your insurance can safeguard you. If you’re looking to buy quality auto insurance, you can rely on San Angelo Insurance. Check out this page to see their range of services.

When Claims Are Denied

Following an incident or accident, a policyholder files a claim, but sometimes, their claim may be denied. The following are some of the instances when claims may be denied.

1. You’re Not Covered

Sometimes, policyholders have an inaccurate comprehension of what their policy covers. And so, when they file a claim, the insurance agents investigate and conclude that they aren’t covered. For instance, if you get into an accident, and injure people or damage their belongings, you would require liability coverage to cater to the resultant financial responsibilities. And so, it’s extremely crucial to have a sharp grasp of the extent of coverage before buying a policy.

2. Engaging In Criminal Behavior

A claim can be denied if it’s determined that the incident or accident was precipitated by the criminal acts of the policyholder. For instance, if a traffic stop escalates into getting chased by the cops, and the car ends up getting damaged, the insurance company can deny your claim. In some cases, the insurance company can also cancel your policy. Engaging in criminal behavior not only puts you at loggerheads with your insurance company but can also lead to fines and sentencing.

3. Deceptive Activity

Some people are under the impression that insurance companies pay claims without investigating. And this can motivate them to stage incidents and accidents in the hope that they will get compensated. If an insurer determines that you engaged in deceptive activities, they would deny the claim, or cancel your policy. There’s a range of scams that go on around insurance claims, but insurers have departments for investigating and are pretty good at unearthing fraudulent activity.

4. Filing Claims Too Late

Most insurance companies require policyholders to report incidents and accidents as soon as they happen and start the claims filing process soon. But for different reasons, some policyholders can wait for so long before filing claims, only for their claims to be denied. Policyholders need to find out the maximum time that their insurer allows to lapse before filing a claim. Some policyholders can be late to file a claim from a point of ignorance.

5. Providing Untrue Information During Application

An insurance company needs to know specific information about you before they can determine your risk score and work out your premiums. And so, if you mislead them by providing false information, those are grounds for denying a claim. Some people lie about their driving background, history of accidents, and medical conditions. In some cases, providing false data can lead to policy cancellation.

6. Lack Of Evidence Of An Accident

When you get an accident and file a claim, the claims investigator tries to piece together events leading to the accident, and the aftermath. And so, if the claims investigator finds no evidence that the accident took place, those are grounds for the insurer to deny your claim. Following an accident, these are some of the things you should do to avoid your car accident claim being denied.

  • Alert law enforcement about the accident
  • Record critical details about the accident e.g. victims’ names and car registration
  • Take photos of the scene, including accident victims, and damaged property
  • Seek medical attention

Unless the accident is particularly minor, never talk yourself out of informing your insurance company. It might complicate things later.

7. Expired Or Cancelled Policy

If you seek compensation during a time that your insurance policy is expired or canceled, your claim would be denied. As a policyholder, you should take the initiative of keeping your policy active. If you can’t locate the expiration date from the documents, call your insurance company and find out. If your policy is canceled, your claim would also be denied. The following are some of the instances where your insurer may cancel your policy:

  • If they find that you damaged a covered property deliberately
  • If they discover that you are wanted for crimes
  • If you routinely fail to make premium payments
  • If they experience a massive number of claims for certain policies
  • If the risk increases significantly

You need your policy to be active for your insurer to pay your claim.