Owning a car is expensive. You have to deal with finding the money for the initial deposit, for making monthly payments regularly, and even for insurance. But even when we pay for insurance monthly or annually, we don’t always get the results that we expected when we bought it. This is because insurers are determined to try to stop your claims from being successful. The fewer claims are made against them, the more money they make. This is why it’s important to make sure that you protect yourself when car insurance goes wrong.
Obviously, the best way to protect yourself against car insurance companies is to hire a car accident lawyer, but there are other things that you can do to help yourself out. Part of the battle is recognizing why and when your car insurance claims might be contested. And that’s what we’re here for.
Here are some of the reasons why your car insurance claim may be denied and what you can do about it should it happen to you.
Seven reasons why your car insurance may be denied
If your car insurance claim has been blocked by your insurer, here are some of the reasons they may give you. Of course, if you want to protect yourself against these kinds of things and you happen to live in Oregon, try hiring a car accident attorney in Portland like the Johnston Law Firm, instead. Otherwise, browse some of our reasons below and learn how to handle bad insurers.
1. misuse of the vehicle
It may be that when you took out your insurance policy, you thought you would only be using your car for social purposes. As time passed, you have gotten a new job and now you use your car to go back and forth to work as well. If you have announced to your insurer that you are only using your car for social purposes and then that car gets damaged while you’re commuting, the insurer has every right to reject your claim. You have taken out the insurance under one condition and are using the insurance under a separate condition. This constitutes misuse of the vehicle according to the terms of your insurance contract. Legally, you’re in the wrong.
To avoid misusing the vehicle, please ensure that your insurance claims policy is up to date and accurate at all times.
2. Negligence
Negligence happens when your car is damaged because you weren’t paying attention. An insurance company may claim that you were being negligent if you parked your car in a no-parking zone and it was damaged as a result. Other examples of negligence when dealing with car insurance might be when you double park your car. If an emergency vehicle cannot get past and scratches your car, then you have no legal leg to stand on.
To avoid negligence issues holding back your car insurance claim, you should attempt to be observant of all road signs.
3. Drugs or Alcohol
If your insurer believes that you were under the influence of drugs or alcohol at the time the damage to your car occurred, then they are very unlikely to payout. While the law states that you are innocent until you’re proven guilty, in the eyes of insurers you may have to try to prove that you were not intoxicated at the time of the accident.
If you have been driving under the influence of drugs or alcohol and cause damage to yourself or another person’s property, It is highly likely that there is nothing to be done for you. Don’t drink and drive.
4. Uninsured driver
It might be that you were not actually driving the car at the time that the damage occurred. If the person who was driving the car is not named on your insurance policy, then it just might be that your insurance company refuses to pay. This is why we have named drivers on our car insurance policies.
If an uninsured driver has been behind the wheel of your car, then the best thing you can do is start civil proceedings against them to have the compensation claim paid. They may not be insured, but they can still repay you for the damage that they have caused. If you want to learn more about driving without insurance, click here.
5. Violating the law
Your motor insurance is only valid under the assumption that you are obeying all the rules of the road. If you have not obeyed all the rules of the road and have violated the law, then your insurance company is unlikely to want to pay you. Violation of these laws can cause danger to other parties. In this case, you may also be liable to pay their damages as well as your own.
If you are breaking motoring laws and you want to make a claim on your motor insurance, then we highly suggest you find a lawyer.
6. Overdue policy renewal
In the worst-case scenario, you will have done everything you can to ensure that your claim for car insurance was accepted. However, if your policy has expired, then you could be in serious trouble. Policies must be valid at the time that the claim was made and at the time that the damage was done for you to be able to claim back your compensation.
If your policy has been up for renewal at the time that the damage was caused, then your insurance claim will fail.
7. Modifications
When you make modifications to your vehicle, you are required by law to inform the Department of Motor Vehicles. Modifications cover everything from a raised spoiler to a lowered front end. Even adding a new radio can constitute making a modification. If an insurance company wanted to, they could very well deny your claim for a road traffic accident on the basis of the fact that you had a new radio fitted.
This one has an easy fix. Make sure that all modifications are declared to the Department of Motor vehicles, and you should be fine.
