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The Reasons for Which Car Insurance Claims are Denied and How You Can Avoid Them

When you get into a car accident, you should immediately file a claim with the insurance company of the at-fault party. The compensation you receive from the insurance claim is needed for lost wages, medical bills, pain and suffering, other damages related to the accident, and the resulting injuries from it.

The bad news is that a lot of car insurance claims tend to be denied, and the reason for the denial can be different depending on the case. In most situations, you can avoid an initial claim denial by taking the right steps when you’re filing your claim. Car insurance claims can be denied for many different reasons, and we are going to share some of the most common ones with you right here.

1. Policy Doesn’t Have Comprehensive & Collision Coverage

One of the main reasons auto insurance claims are denied is that the policy doesn’t include comprehensive and collision coverage. The policyholder at-fault may have tried to save money and only purchased liability coverage for themselves. Unfortunately, it means that after an accident, the policy will cover the other driver, and the policy owner isn’t going to be covered.

2. The Claim Is Fraudulent

There are times when a claimant may try to lie or exaggerate to get coverage after an accident, and car insurance companies know this trick very well. They will reject the claim, and apart from earning a claim denial, it is a felony offense to file for a fraudulent claim. It is in your best interest that you don’t make a fraudulent claim with the insurance company.

3. The Coverage for the Claimant Is Insufficient

There are times when the damages following a car accident may exceed the limits of the policy. If the at-fault driver’s coverage isn’t enough to pay for all the damages, the other driver involved in the accident can sue that driver for the amount that isn’t covered. At the end of the day, it will cost the policy owner more money to ensure that they have adequate coverage protection.

4. The Premium Payments for the Responsible Driver are in Arrears

Keep up with the premium payments for your car insurance policy; otherwise, it can be suspended. Even if you miss a single premium payment, your policy isn’t going to protect you when you get into a car accident. Therefore, you should make it your priority to ensure that you are making all premium payments for the car insurance policy.

5. The Driver Is Charged with a DUI

An insurance company has the right to deny any insurance claims that were filed if the driver at fault for the accident has been cited for drinking when driving or taking drugs before or while driving. You should not be under the influence of alcohol or drugs when you’re driving. If you get into an accident while being under the influence, your claim is going to be denied by the insurance company.

6. The Accident Wasn’t Reported On Time

A car accident must be reported on time when it takes place; otherwise, the insurance company is well within its rights to reject the claim. Some insurance policies have a deadline for reporting an accident. Don’t waste time, and report an accident immediately when it takes place.

7. The Driver Didn’t Seek Medical Attention

If you get into an accident and are injured but don’t choose to seek medical attention, that is a major red flag for the insurance company. They may assume that the injuries from the accident weren’t serious or that you were already injured before your accident. In any case, you should seek medical attention straight away after an accident, as the medical records will support your claim.

8. The Driver Has Been Excluded from the Policy

If the driver responsible for the accident has been excluded from the insurance policy, the claim is going to be rejected. The insurance company may sometimes exclude a driver from the policy due to their bad driving record, and that’s why their claim isn’t going to be covered.

How to Avoid Having Your Insurance Claim Rejected?

Finding out that your claim has been rejected after getting into an accident is not ideal. However, the good news is that there are certain steps that you can take to ensure that your car insurance claim is accepted by your insurance company. These steps are as follows:

  • When you get into an accident, always exchange information with the other driver, including the license plate numbers, insurance cards, contact information, and car registrations.
  • You should write down the name of the insurance agent of the other driver.
  • Try and note down the date, time, and location of the accident.
  • If there are other witnesses around at the time of the accident, try and note down their names and their contact information.
  • If the police haven’t arrived on the scene, make sure that you inform them, so that they can interview the witnesses and drivers, and file an accident report.
  • Note down the names of the officers, ways of contacting them, if required, and the number of the accident report.
  • You should report the accident to your car insurance company straightaway.
  • Don’t take the blame for the accident right away, even if you were the one at fault. It can be that the police report has some information you’re not aware of that proving the other guy responsible for the accident.

Conclusion

It’s important to always read your car accident insurance policy thoroughly, and you should ask questions if you’re unsure about something from the insurance agent. Make sure you have sufficient coverage and have always followed all the steps to ensure that your car accident insurance claim isn’t rejected by the auto insurance company.

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