As a law-abiding citizen, you must hold a current car insurance policy. No one is exempt from this rule and for good reason. In the event of a car accident, insurance protects you and others from potentially debilitating financial and legal problems. The United States is one country that heavily penalizes people who drive without proper insurance. If you find yourself in a situation where you need to make an insurance claim, make sure you have the proper coverage. There are a multitude of reasons why insurance claims may be denied. Below are some common mistakes that lead to unwanted surprises when it’s time to file a claim.
Common Reasons Claims are Denied: Vehicle Modifications
It might sound fun and harmless to change the color of your vehicle, but the truth of the matter is that once you alter your vehicle in a permanent way, it could also alter the terms of your insurance agreement. Temporary modifications such as new seat covers will not alter the validity of your insurance policy but permanent changes that affect the appearance or performance of a vehicle can lead to denied claims after you suffer damages.
Failure to Pay
If you are delinquent in your insurance payments, your claim may be denied. There is no way to predict when you might need to file a claim. If you haven’t paid your monthly bill and you get in an accident or your car is damaged in some way, your insurance is not current and you are not covered. Talk to your insurance provider in the event you aren’t able to pay your bill on time. They may be able to help. It will be difficult to find cheap car insurance in the future if you don’t pay.
Honesty is always the best policy. Represent yourself in person and on paper truthfully. If the insurance company discovers that you have misrepresented yourself or the situation, your claim will most likely be denied and you could also face serious insurance fraud charges.
The most common reason drivers are denied insurance claims is because they are driving with a suspended license.
In tough economic times, it’s easier to forgo payments on services where we see no immediate benefits. The nature of insurance is to cover you in the face of unforeseen events- events which are typically very costly and stressful. Keep your insurance and your driver’s license current so you won’t find yourself in a crisis without the coverage and help that you need.