InsuranceThought — Blogs About Insurance

Insurance Claim Rejection Can Be Costly

Auto insurance is incredibly valuable if you are involved in an accident, therefore it is imperative to purchase your insurance from a reputable, reliable company. Should you choose to insure with a company with internal asset problems, you may be left in financial ruin if you are at fault in a car accident, not to mention you will have wasted an awful lot of money on premiums for essentially worthless insurance. Make certain you do the research necessary to find an insurance company that will be able to pay any claims you might need to make.

There are reasons, however, that, even though they are capable of paying, an insurance company may deny auto insurance benefits; this, too, could end up costing you more than you can afford.

Here are a few reasons companies may reject auto insurance:

1. Intentionally inflicted damages – more often than not, an insurance company will not cover damages that are not accidental. In the case of theft, the company will likely not pay if they can prove that the incident was due to the driver’s irresponsibility (i.e. leaving the doors unlocked with the keys inside).

2. Giving false information – this gives the insurance company grounds fro invalidating your claim. Giving false information can also lead to legal action against you.

3. Losing important papers – losing receipts for repairs or replacement items or other legal documents gives the insurance company valid reason to reject your claim. If you can’t support your claims with legal documents, you have no proof to claim benefits.

If you find yourself being rejected by your insurance company for a claim, be sure to go back and read over your policy documents carefully. If you believe the company has no legal right to reject the claim, you should seek legal counsel to compel your insurance company to pay the amount they should.