Can my auto insurance company deny my claim?
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UPDATED: Jul 14, 2021
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- Car insurance companies can deny auto insurance claims
- Your car insurance company must have a valid reason for denying your claim
- You can appeal a car insurance denial
- You have the right to shop for a different policy via a comparison tool if you are dissatisfied with your current insurance company’s handling of a claim
If you’ve just recently filed a claim for damages to your car with your car insurance company, you may be wondering if they have the right to deny your claim.
Under certain conditions, auto insurance providers can deny auto insurance claims.
However, they must provide you with a letter stating the reason for the denial and offer you the option of appealing the decision.
If your car insurance company has recently delayed processing your claim or denied your claim for accident compensation, you can quickly find another insurance carrier with better customer service and a difference insurance policy. You may even save money on your monthly premiums.
To find another insurance carrier, get started by comparing car insurance quotes today!
Auto Insurance Claims
When you get into an accident or incident, you should call your insurance company and file a claim in almost all instances. The insurance company will send an adjuster to look at the damage to your car, and they will investigate the claim.
If your car insurance claim is valid, they will approve the claim and give you a list of repair shops where you can get an estimate and have your car repaired to its pre-accident condition.
If your claim is not valid or the way your car was damaged is expressly excluded in your policy, your car insurance company may deny your claim. You can appeal a denial and wait for a reevaluation of your claim.
However, if it is denied again, you would be forced to pay for the repairs or replacement of your vehicle from your personal funds.
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Reasons Car Insurance Companies Deny Claims
The following are valid reasons why car insurance companies have the right to deny claims:
- Damage Amounts Are Above Policy Limits – If the damages are above the policy limits, you will only receive compensation up to the policy limits. All of the damages and medical bill amounts above the policy limits would be your responsibility.
- It’s Not Covered or Specifically Excluded – Car insurance policies can expressly exclude certain types of accidents and activities. One of the most common exclusions is the business use of a personal car. If your boss wants you to drive somewhere for business or deliver something and you get into a car accident, your insurance policy may not cover you.
- You Committed a Criminal Offense or Were Under the Influence at the Time of the Accident – If you committed a crime, like robbing a store, running from the police, or were under the influence of alcohol or drugs, your car insurance company can deny your claim because you were participating in an illegal activity or impaired at the time of the accident.
- You Exaggerated Your Claim or Committed Fraud – When you submit your claim, make sure you are being truthful. If your car insurance company feels like you are committing insurance fraud or exaggerating the damages uncured, they can deny your claim. You may even find yourself criminally prosecuted.
- You Were Driving Someone Else’s Car – If you do not personally have car insurance and you are driving someone else’s car at the time of the accident, you may not be covered unless you are specifically listed as a driver for that vehicle or the owner specifically pays for insurance that includes additional, non-specified drivers.
Appealing a Denial
If you get a denial letter from your insurance carrier, you can appeal it. However, you will want to provide additional information that proves your case.
If you have witness statements, pictures, doctor’s bills and statements, a police report, or any other information, you will want to submit that information along with your letter of appeal, which should specifically state why you are appealing and the reasons you feel your claim should be approved.
Finding a New Insurance Company After a Denial
If your insurance company has recently denied your valid claim for compensation after a car accident, you do not have to continue to do business with that insurance carrier. Instead, you can use a car insurance comparison tool to search for a new policy with a different auto insurance company.
Car insurance comparison tools take your information and compare it to every available policy in your local area.
The tool then provides you with several results. Once you receive the results of the search, you can browse through the new policies and choose a new one. You may even find better rates.
To use our comparison tool NOW, simply enter your ZIP code below!