April 12, 2024

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Car Insurance Problems – 4 Reasons Why Your Insurer Will Refuse Your Claim

Car insurance is no doubt a legal requirement, but it is something that vehicle owners will find useful if ever they are involved in car accidents. Medical bills can work out to be very steep and so can the cost of repairing a car that has been totally wrecked. While you do need to get the right insurance policy and keep up the payments, you do have to watch out for certain situations that might cause your insurer to refuse your claim. All the money you have paid as premiums will be wasted and you’ll have to pay all the medical and repair bills in full.

The following reasons generally lead to refusals:

1. Your specific policy does not cover the loss you have incurred. You need to go through the policy carefully before you make a claim. Also, you should take a policy only after considering all the repercussions. Most policies also have exclusion clauses; for instance the insurer will not pay out in case you do not have a license or have done modifications that reduce the safety of your car. Further, you will not get a payout in case you have been found to be driving under the influence of alcohol or drugs.

2. You have not given the insurer sufficient information at the time of taking the policy. Auto insurance companies require detailed information about you that will help establish the risk associated with you. This includes whether you have had any auto accidents as a driver and whether your car has already been damaged. Therefore, you need to read the form carefully and fill it correctly when taking out a policy.

3. You have purposefully given incorrect information to the insurance company. Insurers are sure to do a detailed investigation in case they have a doubt that you have committed fraud.

4. If your policy is not active then you will not get a payout. You’ll need to keep up the payments in order to ensure that the policy exists at the time of the accident.
As you can see, it is very important for you to keep your paperwork in good order or else you will have problems with your car insurance payouts. You should also make sure that your claim is done without too much of a delay after a car accident, and preferably with advice from a professional. You can explore legal options in case you feel that you have been cheated.