When you get into an accident or your vehicle gets damaged, one of the first things you do is reach out to your insurance company to file a claim. With that in mind, many people are under the impression that when you file a claim, it is automatically approved. However, that isn’t always the case. In some instances, your insurance company will deny your claim, and you will be forced to pay out of pocket. In today’s post, we will provide you with more information about why your car insurance claim may be denied so that you can potentially avoid it in the future.
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You Are at Fault for the Accident
If you get into an accident with another driver, you may decide to file a claim with the other person’s insurance company in addition to your own. The reason you may decide to do this is because you think the other person is at fault and you want them to pay for the damages. Once you file a claim, the insurance company will look into the incident and create a report. If the other person’s insurance company does their research and determines that you were the one at fault for the accident, they will deny your claim.
There are different types of car insurance coverage, and not every policy includes everything. For example, you may have a basic policy that covers liability but not collision. If you get into an accident and your car is damaged, you will not be covered because you did not purchase the proper coverage. Before you file a claim, make sure you understand what is and is not included in your policy.
With that in mind, when you create your insurance policy, it’s a good idea to work with people who know what they’re doing. Professionals can help you determine what coverage is and isn’t necessary so that you never find yourself in a situation where you don’t have the coverage you need.
When you purchase car insurance, you choose the coverage limits. The coverage limit is the maximum amount of money the insurance company will pay out for a claim. If your car is damaged and the repairs cost more than your coverage limit, you will be responsible for paying the difference.
For example, let’s say your car was in an accident and the repairs cost $5,000. However, your coverage limit is only $3,000. In this case, you would be responsible for paying the remaining $2,000 out of pocket.
There are certain car insurance laws in place that you must follow. If you break one of these laws and get into an accident, your insurance company may deny your claim. One common law that is often broken is the requirement to have car insurance. If you do not have car insurance and you get into an accident, your claim will automatically be denied. Additionally, if you get into an accident and it is determined that you were doing something illegal at the time of the accident, such as driving under the influence, your claim may be denied as well.
These are just a few reasons your insurance claim may be denied. If you’re worried about your policy, or you’re still searching for the perfect insurance policy for your needs, Fabulic Insurance Agency is here to help residents in Indiana and Kentucky! Our insurance brokers have years of experience, and we can work with you to find the car insurance company and coverage that will best suit your needs. Give us a call today!