When buying car insurance, it is essential to know what coverage is sufficient for you. It is equally important to know what steps to take when filing a claim. Many people forget to ask their car insurance agent the circumstances under which their claims will be denied. Here are a few of them.
The Accident Was Avoidable
If you could have prevented the accident or if you had contributed to the accident, your insurance claim may be denied. For example, you did something to render the policy ineffective, like drunk driving or letting an unlicensed driver operate your car.
Additionally, your insurance claim may be denied if your license has expired or is of a different driver's category. Inquire from your car insurance agent when it considers an accident as avoidable.
Exceeding Your Policy Limits
Every insurance policy has a limit on how much it will compensate you for an accident. If your claim exceeds your coverage limits, you are stuck to pay the excess. In this case, the insurer can turn down your claim.
For example, suppose the limit on property damage liability coverage is $10,000, and you damage a car worth $100,000. In that case, your insurance company will only compensate the other party for the value of your coverage. Make sure you ask your auto insurance agent about your policy limit and deductible.
It's also worth noting that your compensation will depend on your deductible. This is the amount you pay out of your pocket before the insurance kicks in. If your deductible is worth $500, and you cause damages worth $500, the insurance company will turn down your claim.
You Failed to Receive Medical Treatment
The first thing you need to do after a car accident, apart from gathering evidence, is seek medical attention. You should do this regardless of whether you feel injured or not. Some severe conditions like traumatic brain injuries and herniated discs only start to show symptoms weeks after an accident.
When you delay medical treatment, an insurer may claim that your injuries were unrelated to the accident. Inquire from your car insurance agent about their policy on the timeline for seeking medical treatment.
Other reasons an insurer may deny your claim is if you default on your insurance premiums or fill in the wrong information when applying for an insurance policy. To increase the chances of a successful claim after an accident, make sure you talk to your auto insurance agent about all the possible scenarios when you may not get compensated for an accident.
After we had kids, we realized that we needed to up the ante on our insurance coverage. While we had a policy in place, I knew that we had to do something to make sure that we were protected in any instance, which wasn't the case at the time. I began talking with different brokers about what we could do to improve our coverage, and they had some really great suggestions that seemed to help. This website is here to help other people to know how to purchase insurance, and what kinds of policies would work best for your special family.