Why A Car Insurance Claim Can Be Rejected By The Insurance Company

LOS ANGELES (PRWEB) December 23, 2019

Compare-autoinsurance.org has released a new blog post that presents the main reasons why a car insurance claim can be rejected by the insurance provider.

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Car insurance was created with the purpose of reimbursing the policyholder. When an accident or other covered event happens, the policyholder files a claim and waits for the case to be analyzed and receive financial compensation from the insurer. However, there are several situations in which the claim will be rejected by the insurer. A claim can be rejected for the following reasons:

• Failing to inform the company about the incident in a specific timeframe. If the policyholder does not notify the insurer about the event or informs it too late, he may end up with a rejected claim. Policyholders should know that they have the obligation to inform the insurance company as soon as possible or at least in a specific timeframe, which is usually mentioned in the contract. If the driver notifies the insurer about the accident after 48 hours, but the deadline was 24 hours, it is likely for the claim to be rejected. The company needs time to prepare the case, announce claim adjusters and calculate reimbursement. This is why notifying the company in due time is extremely important.
• The policyholder was driving intoxicated. DUI/DWI is a serious felony, one which will not be forgiven by any insurance company. A claim can be rejected and the company may even drop coverage. And the incident will be recorded and make future underwriting more difficult and expensive.
• The car was involved in an accident while being used for undeclared purposes. Claims can be easily rejected when a personal car is involved in an accident while doing commercial activities. The vice-versa is also possible. For example, when a commercial car transports other people than workers or staff to the workplace. Only the driver is insured and the company will not provide compensations for others' medical expenses.
• Driving while the license is expired. If a person drives with an expired/suspended license and causes an accident, the insurance company will reject any claim. This is a no-brainer and besides facing a rejected claim, the driver will also incur other penalties, varying from hefty fines, up to jail time.

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