Why has my auto insurance claim been denied?

When you get into an accident, the most important order of business, after making sure everyone is okay and getting medical attention, is to begin filing your insurance claim as soon as possible. Your insurer is there to help you through the process and help you get compensation for the accident. However, there are some instances where your claim may be denied. Keep reading to understand the reasons this may happen, and how you can avoid it.

Vehicle has been modified or is not road safe/legal

Vehicle mods can range from everything to a new stereo system to a lift kit, and typically, if you speak to your insurer and have them approve your mod, all should be fine with your insurance. However, if you fail to report a modification to your insurance provider, or they inform you that a specific mod is not covered but you do it anyway, you will most likely find yourself with a denied claim. Similarly, if your vehicle is no longer considered safe or street legal, whether it is from a mod or age, your claim can also be denied.

Using your vehicle for commercial purposes

If you are using your vehicle as an Uber side hustle, you need to inform your insurer, or you run the risk of denied claims. Utilizing your vehicle in that way is considered commercial use, and if your vehicle is insured under a private policy, your insurer will most likely deny your claim should you submit one.

You do not have coverage for your claim

It is extremely important to read your policy and understand what level of coverage you have. Often, claims are denied simply because people do not have coverage for what they are trying to claim. If you are unsure about your coverage, speak to your broker and add additional coverage should you feel you need it.

The incident involved criminal activity

If the accident you are trying to claim took place while you were involved with some sort of criminal activity, your insurer has the right to deny your claim. This includes anything considered criminal in the eyes of the law and those put forth by the hi-way safety commission.

This also covers driving impaired or with a suspended licence. Simply put, if you are driving under the influence of drugs or alcohol, or if you are driving without a valid licence, you claim can be denied. Doing either of those things is illegal, and puts everyone else on the road at risk.

Behind on premium payments

One of the reasons it is so important to stay on top of your premium payments is the fact that you run the risk of having your claims denied if your account is in the red. To help avoid this becoming an issue in the event you need to put forth a claim, ensure that your payments are made in a timely manner.

You were dishonest with your insurer

When filing a claim it is so important to be honest with your insurer about the accident, the state of your vehicle, and the circumstances surrounding the incident. If you fail to do so, and your insurer finds out, then your claim can be denied. Additionally, you will be seen as dishonest to your insurer and find yourself with higher premiums, or in some cases, no coverage at all.

A mistake was made by your insurer

If your claim has been denied, be sure to speak to your broker, and ask why it has been denied. They will be able to take a close look at your file and explain why the claim was denied. And, it is rare, but there may even be the chance that they made a mistake when filing. This is not a common occurrence but, hey, sometimes mistakes happen, we are all only human.