In return for paying for car insurance coverage premiums, it is only normal for car owners to expect protection against damages. As such, it can be incredibly frustrating when car insurance claims get denied over and over again. Rejection of car insurance claims is something that has been in the industry for a long time, with several people even claiming insurance companies to be frauds. Before filing another claim for your car insurance, it can be helpful to understand the most common reasons car insurance claims are getting denied.
Driving Without a License/ With an Invalid License
One of the most common cases where car insurance claims get denied is attributed to non-compliant driving behavior, including driving without a valid license. Apart from the 2, another common illegal reason is driving while intoxicated.
Car insurance claims do not cover any kinds of damage that happen to your car, especially when you fail to keep to the law when driving your vehicle. Driving without a license or when intoxicated greatly increases the risk of your car being damaged, which is why they are part of exclusions under car insurance claims.
Failing to Inform Your Car Insurance Company on Time
Another common mistake that policyholders commit is failing to inform car insurance companies themselves after getting into an accident. Many times, people first go to repair a car on their own before approaching their car insurance company for claims. When this happens, it can be extremely difficult for the insurance company to verify the damages of the accident and any repair work conducted thereafter. As such, it could become a valid reason for insurance companies to reject your car insurance claim.
Should you, unfortunately, damage your vehicle in the future, the first course of action should always be to inform your car insurance company. In most cases, the insurer will get authorized personnel to inspect the vehicle and estimate the cost of repair, before helping you through getting the appropriate claim for repair. If you are looking for comprehensive and affordable auto insurance, then we highly recommend that you consider K&N Insurance Brokerage. With flexible policies suited for everyone regardless of age and driving experience, you can be sure to find the type of coverage you need. Experience the best auto insurance policies by working with us today!
Using Private Cars for Commercial Reasons
A less common occurrence, many car insurance companies will reject files for claims if damages occur when your car is being used for commercial reasons. If you registered your vehicle as a personal vehicle, then accidents caused by commercial activities can make it difficult for car insurance companies to approve an insurance claim.
Apart from the above, there are other handfuls of reasons as to why your car insurance claims are getting rejected. These include incorrect information, failure to pay for a premium of the policy, driving outside of a specified area, car modifications, non-cooperation, and others alike.