6 reasons your car insurance claim was denied

reasons your car insurance claim was denied

6 reasons why your car insurance claim got denied

The last thing you want after getting into an accident is to find out that your car insurance claim got rejected.  To ensure you don’t run into any problems when submitting your next claim, read ahead to find out some of the more common reasons why insurance claims get denied:
You never paid your premium
If you want to help your odds of getting your claim approved, you have to make sure you’re actually paying for your policy.  Failure to pay your premium on time can put your insurance claim in jeopardy. Even if you’ve only missed a single payment, the insurance company still can deny your claim.
To ensure your information is always up to date, make sure to notify your provider if you move addresses or banks. This way, you won’t be at risk of missing a payment.
Your policy didn’t cover it
Remember that cheaper policies offer the least amount of coverage.  For instance, if you have liability insurance, but not collision, you won’t have the proper coverage if the accident is deemed to be your fault. While there are certainly benefits to paying a cheaper premium every month, you could run into some trouble if you get into a serious collision.
It could’ve been avoided
Insurance companies aren’t likely to approve your claim if they believe you did a poor job of preventing the accident. If you were driving under the influence or recklessly, an insurance company may not reimburse you for your own careless mistakes.
Your license was suspended
This one may seem fairly obvious, but enough people still try to submit claims after they’ve been in an accident with a suspended license.  Don’t bother trying this out, as the insurance company will likely choose to cancel your policy altogether.
You used the car for business
If you signed up for a personal use policy, you have to make sure that you only use it for personal use. If an insurance company finds out that you’ve been using your vehicle for commercial use, they have every right to deny your claim. This is because business vehicles are used more frequently, and are more likely to be involved in accidents.
In general, it’s a smart idea to be as open as possible when signing up for insurance. If a company ever finds out that you’re lying, you could be in some very serious trouble.
You waited too long 
If you want to make sure your claim gets approved, it’s in your best interest to report it right away.  If you don’t report it within a reasonable time frame, your insurance company has every right to deny your claim.
Take a look at your policy to figure out how long you have to file a report.