An auto insurance company can deny coverage for almost any reason. An insurer may deny coverage to a driver who believes they represent a higher risk and is more likely to file a claim. In addition, each state may have different criteria for why an insurance company can deny coverage. The company has the right to deny you coverage if it thinks you are not honest or that you are a high-risk driver.
However, they'll need to tell you about their decision and give you enough time to arrange alternative coverage. If you're wondering if an insurance company can deny a claim, the answer is yes. Filing an auto insurance claim isn't always a simple process. Insurance companies can deny claims for many reasons, so it's important to know your options.
To correct the situation, you can review your policy, submit documents that support your claim, and challenge it in court if you believe your claim was denied for unreasonable reasons. Yes, individual car insurance companies can deny coverage for a variety of reasons related to your driving history or insurance. However, the law requires auto insurance coverage in almost every state, which means you're guaranteed to find an insurer that covers you, even if it's through your state's assigned venture fund. An auto insurance company can deny you coverage for having accidents, having a DUI on your record, and more.
Auto insurance companies can also cancel or not renew your policy for similar reasons. Insurance claims are often denied if there is a fault or liability dispute. Companies will only agree to pay you if there is clear evidence to show that the policyholder is at fault for your injuries. If there is any indication that the policyholder is not responsible, the insurer will deny your claim.
Consider other things about yourself that aren't strictly negative, but that, nevertheless, may affect your eligibility for auto insurance, and make lifestyle adjustments if you can. For a list of companies that sell non-standard auto insurance, contact your insurance professional, your state's insurance department, or Roughnotes, a company that services the independent insurance agent market and can refer you to the appropriate brokers. Reasons such as having multiple accidents, receiving speeding tickets, or having a DUI can lead to a denial of car insurance. This will generally reduce the number of points or violations on your license, and you may also qualify for an automatic discount on your monthly insurance rates.
When applying for car insurance, you must be honest about your driving history and the number of drivers in your household. You can also sue your insurance company for bad faith practices and breach of contract if your claim was denied for unreasonable reasons. All insurance companies are regulated by the appropriate state department, and these agencies offer mediation and dispute resolution programs. Otherwise, the insurance company may suspect that you are filing claims for injuries not related to the accident.
Still, you should find out as much as you can about the reason for the policy denial, to be careful in the future not to do anything that could make insurance companies nervous about providing you with coverage. Each insurance company evaluates applications differently, so one may give you a quote while another may not. Insurance companies won't hesitate to take advantage of you if you are not represented by an attorney. If you're denied because you're considered high-risk, that means the insurance company could lose money if it covers it and doesn't want to take the risk.
But all drivers are guaranteed some form of auto insurance coverage with the help of the state government if private insurers deny it. If you're denied auto insurance coverage, the best short-term option is to look for an alternative provider, such as a company that offers non-standard or high-risk insurance policies. If an uninsured driver hits you and you don't have coverage for uninsured drivers, you have the option of suing the driver depending on the state in which you live. .