What to do if auto insurance claims are denied?

 

Nobody ever thinks that he or she would definitely meet with an accident that’s the reason to purchase the auto insurance, but what if you face with an accident you will surely expect that the auto policy will be paid off to you, but what if you file a claim and the company deny to give you the claim sometimes they give genuine reasons but sometimes definitely not, then in that case what can be done and what are the reasons for which they can deny are listed below:-

WHY ARE CLAIMS DENIED BY THE COMPANY?

The people who adjust the claims have reported that the common reasons under which the claim is denied or they don’t pay off the full amount, the common reasons are given below:-

  • Limits of the policy

Every policy has their own limits, there are high chances that you might be stuck for the excess, like suppose you claim higher than your coverage then there is a legitimate reason to that, like you own a Lamborghini and you met with an accident and you destroys someone’s else property (that’s the coverage of damage liability coverage) as state sets $15,000 or $20,000 but what if the damage comes out to be $50,000 then here the deny can be made by the insurer. In short, the higher the deductible the less you will have to pay but to pay the deductible will be your duty, not the insurers.

  • Policy coverage

There are several types of coverages:-

1) Collison coverage- which covers the coverage if your car collides with another car or by a pole.

2) Comprehensive coverage- covers the coverage when your car gets damage from fire or vandalism.

All the coverages are according to the state, some are mandatory and the others are optional, on the other hand, if you have purchased the comprehensive coverage and suppose you drop the coverage and tree falls on your car accidentally and you got no comprehensive coverage, then the insurer can deny the claim, so always purchase comprehensive coverage.

 

  • If you break the law

When you purchase your car you got everything which will protect your car in the future, you are fully secured with the insurance policies of your car but if you break the state law then the insurer may deny the claim, on the other if you are caught drunk driving.

At the end, I would like to say that no matter in the above mention cases the insurer may deny the claim, but there are some other additional reasons also like during the accident you can avoid it but still it happened, like if your case comes on the ground of fraud information then there are high chances that the claim will be denied.

To help yourself if the reason is not legit by the insurer to say no to the claim, you can get your complaint registered in the state insurance department.