Auto insurance policies allow drivers to file a claim when they suffer a loss that the policy covers.
Claims are a process in which the policy owner requests the insurer provide payment for the loss suffered. However, there are many instances in which a claim will not receive approval from the insurer.
Denials are common if a vehicle owner simply does not understand his or her car insurance policy. Some of the most common reasons that this occurs are the following.
The Incident Was Due to Neglect
The reason for the incident occurring plays a role in whether or not a car insurance policy will payout on a claim. For example, if you have comprehensive coverage, it might cover damage from a fire in your vehicle.
However, if that fire was due to a lack of maintenance on your engine, the policy may not pay out. Insurance covers unavoidable and accidental incidents first and foremost.
The Policy Doesn’t Cover the Claim
It’s important to understand what your auto insurance covers, but also what it does not. On most insurance policy, there is a list of exclusions. These are the types of incidents the plan does not provide protection for. For example, if you only carry liability insurance, and are in an accident that damages your vehicle, the plan will not cover damage. It will only provide coverage for any other property or person you damaged.
The Plan’s Limits Were Met
Depending on the type of auto insurance you have, it is likely that the plan will include limits. Limits apply on a variety of types of claims. In some cases, the limit is per incident, but it can be for the term of the plan. In addition, many policies offer per-item limits. For example, if you had a theft from within your vehicle, your policy may cover only up to a certain value of the lost item. Know the limits of your plan.
There are various other reasons why your car insurance could deny claim. Most commonly, more information is necessary. You may be able to work with your insurance provider to learn what information they need to approve your claim. The good news is your agent will help you to file the claim and can answer your questions.
We’ve got you covered. Come to McFarlin Insurance Agency for a fast, free auto insurance quote. If you need coverage, we are here for you. Call us at (410) 312-7800 for more information.