Many people believe that their insurance company will automatically cover their expenses if they are in a car accident. However, the truth is that your claim can be denied. This is because insurance companies consider many factors when determining if a claim should be paid out. Here, we’ll go through some reasons your car accident claims are denied.
Insurance Policy has Lapsed.
If your insurance policy has lapsed, your claim may be denied. To receive compensation after a car accident, you must have a valid insurance policy at the time of the accident. If not, you would likely be responsible for all your damages. As a result, it is vital to ensure your insurance policy is up to date before you get behind the wheel.
Fraud or Misrepresentation
Fraud or misrepresentation can lead to a claim being denied. To ensure that your claim is successful, you must be honest about the accident’s circumstances. It’s vital to be truthful about the extent of your injuries. If you exaggerate your injuries or try to include injuries not caused by accident, this will likely be discovered during the claims process and could invalidate your entire claim.
Insufficient Coverage
Another common reason for denied claims is insufficient coverage. To receive compensation from an insurance company, policyholders must have adequate coverage for their situation. For example, if a driver is involved in an accident with an uninsured motorist, they will need to have uninsured motorist coverage to receive compensation. Unfortunately, many drivers are left without recourse after an accident because they don’t have sufficient coverage.
