We all buy car insurance to protect us financially in event of an incident. But there are times where you could find that your car insurance claim was declined. That may come as a shock to some policy owners who think that insurance is a blank cheque. While the reasons your insurance claim was declined might be few and far between, they do exist and you should know about them. We’re sharing the five common reasons they might be declined.
Five Reasons Your Insurance Claim was Declined
A Policy Limit or Insufficient Coverage
It’s important to know the details of your car insurance policy in depth. One of isure’s certified insurance brokers can help explain the small print of a policy to you. In some cases, your insurance package may not include a particular type of coverage. This is especially true if you lack comprehensive coverage for things like vandalism or fire. Other reasons can be if you hit a limit on your policy. Let’s say your property damage coverage limit is $50,000. If you got into an accident with a McLaren, causing $100,000 in damage – your claim would be denied due to the policy limit.
You Missed a Payment
Always ensure that you pay your car insurance premiums on time! Missing a payment by even a few hours can mean that the insurer denies your claim. The best way to avoid any potential issue is to make monthly payments automatically. Or better yet, pay your insurance in one yearly lump sum. By paying annually, you can save money on your car insurance.
Misinformation or Failing to Disclose
When you submit your details to your insurer, it’s crucial that you are honest. One reason insurance claims are declined is if you fail to disclose important information. It can be an incorrect address or not disclosing a nitrous oxide engine. When providing your information share everything from existing damage to previous claims made. Otherwise, you risk having a claim denied due to failure to disclose.
Using Your Car for Business
If you use your car for deliveries or to be a driver for services like Uber, an insurance claim while on the job could be declined. Personal car insurance policies are for regular usage, and not for business use. If you plan to use your vehicle for business purposes, speak with an isure insurance broker. We’ll compare rates from the top insurers to find coverage for your standard usage as well as for business use like Uber.
Driving with a Suspended License
If your license is suspended for any reason, do not get behind the wheel. An insurer will be well within their right to deny your claim if you’re driving illegally. This can extend beyond suspended licenses as well. If you’re committing a crime, an insurer can also deny coverage. There are other possible definitions that could result in claims being declined as well. In general, if you’re doing anything wrong – don’t expect any claims you make to be approved.