My Car Insurance Claim Got Denied: Why?


You finally have comprehensive insurance for your car to financially protect you from any unfortunate accident and damage you might experience on the road. However, having a comprehensive car insurance does not fully guarantee that all mishaps will be covered – especially when reasons for damage include reckless driving, or driving without reasonable caution.


Suppose that you file a claim with your insurance provider concerning a minor vehicle misfortune. You wait for a few days, and you get denied. What might have caused the denial in your claim? Don’t be surprised – there are actually a lot of possible factors.


1. Your Premiums are Unpaid


You didn’t notice, but you have an ongoing outstanding balance with your insurer, and you technically haven’t paid for your policy yet. Non-payment is generally the reason for your denial. In worst case scenarios, non-payment of your policy within the reasonable period set by the insurance contract caused your policy to lapse.


2. Exclusions and Lack of Coverage


Your claim is surely to get denied if the cause of the mishap or the nature of the accident is part of your policy exclusion or is not included in your coverage. In example, you might have gotten comprehensive car insurance for your office car or business car used for your deliveries. In the event that a mishap happens, and the nature of the car use is for a personal party or isn’t business-related, your claim can fully be denied.


3. Illegal Driving


Driving with no license or driving with an expired license can get your claim cancelled, should a misfortune on the road occur. Driving under the influence, beating the red light, swerving, and/or over speeding are also included in the reasons for rejection.


There are many possible reasons as to why your car insurance claim got denied by your provider. Most of the time, they are technical – but are all included in the policy. Make sure to always read, understand, and double check with your agent in order to fully comprehend the details of your car insurance.



Sources:


https://www.eclathealth.com/blog/denials-management-six-reasons-why-your-claims-are-denied


https://ichoose.ph/blogs/insurance-claim-rejected/