When Your Auto Insurance Claim is Denied

Some of the frequently noted reasons for denial are:

1.You have no insurance for the claim presented. For example, if you drive an older vehicle, you may carry only liability insurance and have no collision coverage because it is costly. A claim under your policy for damage to your vehicle will correctly be denied.
2.You do not qualify as a named insured under the policy. For example, you are a teenager and you are specifically excluded under your parents’ policy because your parents do not expect you to drive their vehicle.
3.Your coverage has lapsed because you failed to pay your premium before the end of the grace period.
4.You made an Uninsured Motorist Claim under your policy and it turns out the other party to the accident was insured.
5.The damage claimed exceeds your policy limits and the insurance company will not cover the excess.
6.You bought a new car and failed to notify the insurance company to add it to the policy within the specified time given in the policy.

If, after reading the insurance company’s reasons and reviewing your policy, you still believe coverage has been wrongfully denied, there are some steps you may take to try to remedy the situation. You have certain rights under your policy and under state law. Your insurance company has a duty to fairly and promptly settle your claim in good faith.