WHAT COULD BE THE CAUSE FOR MY AUTO INSURANCE COMPANY TO DENY MY CLAIM?

The last thing you want to happen to you after suffering the trauma of a traffic accident is to receive a letter from the Insurance denying your claim. After all, you rely on the support of your insurance company after an accident. Here we will show you the most common reasons that auto insurance companies use to deny or reject a claim:

FAILURE TO MAKE THE MONTHLY PAYMENT FOR COVERAGE

When you insure your car, you sign and enforce a contract with the insurance company. As an insured, you have to make your payments on time to keep your policy active. Failure to pay can suspend the policy leaving you without coverage. You should consider making the full payment of your policy at the time of purchasing it. You will have a higher payment at the time of making the contract, but you would avoid having to worry about losing coverage due to non-payment. Another option would be to schedule an alert on your phone at the beginning of the month and at the beginning of the week in which you must make your monthly payment. At least one month before your coverage ends, review your charges and request other quotes with better discounts or payment options.

FALSE STATEMENT

This occurs when false information is concealed or provided that would affect insurance premium rates.

SKIP DRIVERS WHO LIVE IN THE SAME HOUSE / EXCLUDE DRIVERS WHO USE THE VEHICLE

Insurance premiums are determined by different factors, including the amount of risk that you or others pose to the insurance company. When other drivers are omitted in the same house or allowing a driver expressly excluded in the policy to operate the vehicle at the time of an accident, you would be deceiving the insurance company. All drivers living in your home must be documented by your insurance company even if they also have a vehicle that is covered by another company. This also applies when renting a vehicle, all drivers who can use the rented vehicle must be included.

DECEPTIVE PARKING

Where the vehicle is parked or stored affects the policy and the coverage options that the insurance company can offer you. Parking or storing your vehicle in a city or state other than the one registered in your insurance policy may be the cause for your insurance company to deny your claim. Liability requirements and/or options may vary by state, causing you to lose your coverage due to state law.

INSUFFICIENT COVERAGE  

The only auto insurance coverages that are mandatory in Florida are Personal Injury Protection (PIP) and Property Damage Liability (PD).

Third Party Injury Liability, Collision Coverage, Total Coverage, Uninsured Driver, and Medical Expense Coverage are all additional coverages that are not required by Florida state law, but are recommended to include in your policy. Your insurance agent can guide you when purchasing your policy, based on your history and driving habits, in which coverage you should include in addition to the basic ones required by law. In many cases, Third Party Injury Liability, Collision Coverage, and Uninsured Motorist are the options you should consider adding to your policy. Like any document you sign, be sure to read your policy carefully and keep a copy for your reference. Some companies already have an application for your mobile phone.

DON’T WAIT TO REPORT AN ACCIDENT

Since Florida is a “No Fault” state, you should notify your insurance company first. Contact your insurance company as soon as you have an accident so they can begin the claim process. Remember that your insurance company needs time to investigate your claim and thus calculate the coverage limits of your policy.

Leave a Reply