It is easy to find cheap insurance quotes online and to get car insurance coverage. However, knowing what to do if your car insurance claim is rejected can be maddening. Spending a little time and effort researching the cause, can possibly result in the decision being reversed. If you feel that your claim is valid and should be decided in your favor, then do not give up.
Read your policy, including the fine print, to determine exactly what your policy covers. Then read the rejection letter from the insurance company to understand why your claim was denied. It is possible to appeal the insurance company’s decision.
Some reasons that your claim could be rejected:
- Your coverage does not cover the claim submitted. For instance, if your older car is only covered by liability and your claim is for collision coverage.
- The coverage has lapsed due to nonpayment of premiums. If you need to find new insurance there are many sites to find cheap auto insurance quotes.
- The amount of damage exceeds your policy limits.
- The driver is not insured under the policy as it is written. For example, your teenager is not covered to drive your car.
- Documentation regarding the claim is incomplete or inadequate to prove your claim.
- Your new car was not added to your policy in the specified time frame; therefore, it was not covered.
- If you were at fault in any way; for example, if your car was stolen because you left the keys inside.
- You provided information that was untruthful. Always provide details as accurately as possible without lying.
What to do if your claim was rejected:
- Provide accurate documentation regarding the reason for the insurance claim, especially if new information has become available or if you did not supply the correct documentation at the time the claim was made.
- Keep records of all evidence and any witness statements or police reports.
- Document all phone calls and letters to your insurance company detailing what information was supplied to you or requested of you.
- Inform your insurance company that you intend to dispute the rejection of your claim.
- If you are unable to get a satisfactory decision from your insurance company, you can appeal to your State Insurance Commissioner.
Sometimes it is not possible to reverse a decision and this will necessitate your looking for a new insurance company. Cheap insurance quotes online are available to help you find the right coverage for your needs. Dealing with insurance companies can be confusing and your experience from having a claim denied will help you learn to read your new policy thoroughly. Cheap auto insurance quotes will give you many options in making the best decision for all your insurance needs.
Photo by: scaredy_kat
Mark-
Oftentimes insurance carriers wrongfully deny claims, breaching their duty of “good faith and fair dealing” to their own insured’s. If you have a legitimate claim that has been denied by your own carrier you may be entitled to go to arbitration under the terms of the policy, and due to the wrongful denial of your claim by the insurance carrier bring a “bad faith claim” against them!
If the claim involves injuries (ie an uninsured motorist claim) you should retain an attorney from the inception of the claim.
Insurance companies will attempt to screw even their own insured’s ( Farmers Insurance recently lost a class action for screwing their own insured’s out of $350 million dollars!!!
I had huge issues with a ‘budget’ insurance company. I would never deal with them again. It was an absolute nightmare trying to get the money I was owed and entitled to. i had to contact the insurance ombudsmen and everything.
Thankfully when we switched our insurance our new company has been amazing. They are totally worth the extra $200 a year vs the budget scam company.
Thanks for your tips.