"Simple" Mistakes That May Lead To Auto Insurance Claim Denial

Posted on: 13 April 2017

When you file a car insurance claim, you hope for a quick process that can return you to your pre-loss status as soon as possible. However, this doesn't always happen and sometimes claims get rejected. For example, these three mistakes may look simple, but they can all lead to claim denial:

Modifying Your Car Without Informing Your Insurance Company

Modifying a car changes both its value and its risks of getting involved in an accident. For example, a conventional sedan with an aftermarket performance engine may be more expensive than its stock counterpart. At the same time, if you increase a car's engine power, you do it so that you can drive it at higher speeds, and this increases your risk of serious accidents.

Both factors expose your car insurance company to more risks than it agreed to pay for when you bought your current policy. Therefore, you need to inform your insurer about car modifications so that it can ascertain if it needs to increase your rates. If you don't inform your insurance company, then it might not settle any claims related to the modifications.

Letting an Uninsured Individual Drive the Car

Your insurance company needs to know everybody who will be driving your car so that it can calculate their risks and factor them into your rate calculations. For example, if you have a teenage driver in your household, your insurance company might increase your rates so that the teenager's elevated risk of crashing is covered. If you don't inform your insurer, and the unnamed driver crashes the car, then the insurer may refuse to settle the claim.

Failing to Inform the Police Immediately After an Accident

There are various reasons you need to inform the police immediately your car is damaged or stolen. First, most insurance companies have this (the need to call the police after an accident) in their policies, and you are expected to adhere to it. Secondly, informing the police also legitimizes your claim; insurers receive all manner of car insurance frauds every year. Lastly, the police need to be informed so that they can help mitigating any damages, for example, by redirecting traffic.

Hopefully, you won't face any difficulties if you ever file a car insurance claim. Remember to follow your insurance company's directive to the letter for your claim processing to progress without complications. If your claim is denied, and you feel the denial isn't warranted, consider furnishing the insurer with more information to legitimize your claim. For more information, contact companies like Webers Insurance Service Inc.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!