Driving a car is unpredictable due to the unique road conditions and behavior of other drivers regularly. Auto insurance acts as a safety net to protect you while you’re on the road. While most auto insurance companies cover damages due to accidents and other situations, there are possible exclusions. Here’s a look at how to proceed if your auto insurance claim is denied.
Common Reasons Auto Insurance Claims Are Denied
It is recommended that you look over your auto insurance in Houston, TX, policy to learn about potential exclusions. Insurance companies often deny auto insurance claims if the policyholder has unpaid premiums or if the claim amount is above policy limits. Your insurer may deny your claim if you were driving a car not listed on the policy or if the car contains expensive custom parts that are not listed in the policy.
You should also avoid letting other persons drive your car, as your insurance claim may be denied if a driver not listed on the policy was behind the wheel when the damages occurred. Giving false information to your insurer regarding the claim will also likely cause your claim to be denied if you were driving under the influence when the damages occurred or didn’t have a valid driver’s license.
Bad Faith Denials
Your insurer is obligated to investigate each claim and cover legitimate claims. Insurance companies who fail to uphold these standards are acting in bad faith. Bad faith denials occur when an insurance company recognizes the merits of the claim and still refuses to cover it or fails to explain valid reasons why they chose to deny the claim. Insurers who refuse to look at evidence that can help your claim are also acting in poor faith. However, insurance companies are guilty of acting in bad faith if they fail to follow the rules and regulations regarding investigating claims.
What Steps to Follow If Your Claim Is Denied
If your auto insurance claim is denied, it’s recommended that you ask your insurer for a letter that outlines the exact reasons your claim was denied. To avoid being denied due to lack of evidence, try to include as much information as possible when filing your claim. You should include pictures of your vehicle, a copy of the police report, and other relevant information when filing your claim. Do note that you have the option to file an appeal if your claim is denied.
Some Things to Consider
If your claim keeps being denied, consider contacting an outside party. To avoid further complications in the future, ensure that all of your policy information is up-to-date. Notify your insurer before making any changes to your vehicle or selling it and purchasing a new one. Pay your auto insurance premiums on time, and add all of the people on your policy who you know will drive your car in the future. Look over your car insurance policy to ensure that you have enough coverage. Perhaps you need to add extra coverage like uninsured or travel coverage. Speak with your insurer to ensure that your policy has the necessary coverage amount for your driving needs.
Consult with J. Archer Insurance Group
Having your auto insurance claim denied is frustrating. However, you can appeal if you believe that the process was handled in bad faith. Contact our insurance experts here at J. Archer Insurance Group, and we can assist you if you have any questions.