Simple Mistakes Can Cause Traffic Accident Insurance Claim Denial
By Jim Greene
Published on March 02, 2010
According to insurance carriers, if you've been in an auto accident, you should call them right away, so they can settle your claim quickly. But when you make that call, you may be in for an unpleasant surprise. There are several reasons why an insurer may deny your claim.
Insurance is a business and insurance companies are out to make a profit. The less they pay out in claims, the bigger their profits. Many claims are denied because of mistakes by the policy holder, but don't expect your insurer to help you avoid them.
Inadequate coverage is a common cause of denied claims. Many people try to save on premiums by paying only for liability coverage, which does not cover repairs to the policy holder's car.
Late Payments May Cancel Coverage
If coverage has expired for lack of payment, a claim will be denied. Most companies have a grace period for late payments; after that, there is no coverage.
If someone else is driving your car when an accident happens and your policy doesn't cover that situation, your claim may be denied.
Excessive damage is that which exceeds the limits of your policy. Beyond that, you are responsible for repair costs. If your vehicle requires special repairs, take that into consideration when setting the repair limit of your policy.
New Car Requires New Coverage
If you buy a new car, be sure you know how long you have to add it to your policy. If you wait beyond the specified time and have an accident, you will have no coverage.
Never falsify information on a claim. You may think a little falsehood will save you some time and trouble, but it may only get you a denial, and the trouble of shopping for a new insurer.
If you've been in a traffic accident, call an experienced attorney before you call your insurance carrier. Having an attorney on your side from the start may help you get the settlement you deserve, especially if you have to go to court. Your attorney will also be glad to help you evaluate your needs when choosing your insurance coverage.
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