Possible Reasons For Car Insurance Claim Denial

​After settling your car insurance, you still can't be at ease yet, although you have financial protection for your vehicle. Your auto insurance, however, has limitations in claims, as they have to investigate an accident before paying for it. Insurance claim denial is possible, and here are the most probable reasons behind it.

Direct Violation of Policy
It is necessary to read, understand, and have a print for clauses review of your policy. Familiarizing yourself with the terms of your auto insurance policy lessens the violations you can commit, leading to claim denial. For instance, you got into an accident, but the driver is uninsured. You can't claim from your insurance even though you are insured unless you drove the car during an accident.

Prior Damage to the Vehicle
Some insurance beneficiaries prefer to pull off some tricks to get claims, like prior damage claims. For example, you got into an accident, but the damage in your car happened before the accident. If you file for insurance claims and your insurer found out about it, they will reject you immediately. Should small repairs instead to prevent your premiums from increasing.

Unlawful Activities
Being unlawful can seriously get you in trouble, not only with your insurer but also to the lawful authorities. If your provider discovers your illegal activities, like driving without a license or with an expired one, expect denial from your insurance claims. Aside from being unable to get your insurance perks, you might also get jailed for the violations you have done.

Unauthorized Repair
Along with deductibles, insurance companies also provide a countermeasure called authorized repair limit - the amount of the allowed payments for repairs that do not require your insurer's consent. For instance, your deductible and towing expenses cost $3500, but you spent more than that for the repairs. Thus, your claims may be invalid.

Although it can be displeasing to have your claim denied, getting car insurance is still beneficial for your car and yourself. Meanwhile, you can dispute the claim denials by providing evidence and reporting it to an insurance commission near you.

At Cornerstone Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (888) 661-8831 or Click Here to request a free quote.