What Claims Will an Auto Insurance Company Typically Not Cover?

Insurance companies are in the business of statistics and odds. When you pay a premium for your car insurance, you are essentially betting that you will one day need your insurance company to pay out a sum larger than what you’ve paid in. You are also paying for the peace of mind that, if something goes wrong, you’re covered. Nothing is more frustrating, or more costly, than thinking you’re covered only to find that your claim has been denied. A denied claim not only means you will have to pay for any damages yourself, but it also means your insurance premiums will likely go up.

To help avoid finding yourself in this predicament, it’s important that you have an understanding of auto insurance claims and what your insurance company typically won’t cover.

Driving under the influence

If you are in an accident while under the influence of drugs or alcohol, your insurance company can deny the claim. This will also typically result in higher premiums or even being dropped by your insurer.

Excluded drivers

This is one of the most common reasons a claim is unexpectedly denied. People often assume that their vehicle is covered, regardless of who was driving the car at the time. Unfortunately, this is not the case. If a driver who is excluded from the plan is driving your car at the time of the incident, chances are, your claim will be denied. At the same time, because the vehicle is yours, you are liable for all damages.

Fraud

Insurance fraud is lying to your insurance company. Some people do this intentionally, while others think leaving a few facts out to improve the outcome is not that serious. However, if you are caught, the consequences can be very serious. In the best-case scenario, your insurance company will likely deny your claim and drop you as a customer. In the worst-case scenario, your insurance company will take legal action against you, resulting in hefty fines or even jail time.

Insufficient coverage

Another common reason a claim is denied is due to insufficient coverage. People often don’t look at the limits of their insurance coverage. For example, if you only have the minimum liability coverage, your insurance will only cover damage you caused to another vehicle or property—not any damage to your own vehicle. Be sure that you read your policy carefully so you won’t be faced with any unpleasant surprises.

Waiting to report

If you wait too long to file a claim, your insurance company can deny the claim, saying that they are unable to properly investigate it due to the laps in time. States have laws about how long you have to file a claim, as well. If there is a possibility of bodily injury, it is very important that you report the accident as soon as possible.

If you find yourself needing repairs after an accident, be sure to call Toms Body & Paint, Inc. We’ll work with you and your insurance to get you back on the road!

Categorised in: Collision Repair

This post was written by Writer