When does the car insurance company deny a claim?

When you have a car accident, the last thing you need is to have your claim denied by the car insurance company. Yet, every year, that is exactly what happens to thousands of Canadian drivers.

As you will see, there are several reasons for this. Below, we tell you about the most common ones. Understanding what they are will help you to take steps to stop yourself from making the same mistakes, which will greatly improve your chances of getting paid out should you be involved in an accident.

However, should you, despite your best efforts, be unfortunate and still find yourself having a claim denied, we will be able to advise you. Over the years, the legal professionals of Diamond Law have helped hundreds of people involved in car accidents to get the compensation they are entitled to.

A Reason Car Insurance Company Might Deny A Claim

Most car insurance policies state that you must report the fact that you have had an accident within a certain time period. This ensures that your vehicle, or that of the other driver, can be inspected and the accident investigated. 

If you do not adhere to the notification time-limits, your car insurance claim can be denied. The same thing can happen if you have your vehicle repaired before the insurance company has completed its investigation and given its permission for the repair to go ahead.

Unlawful and Reckless Driving

If a police or court report shows that you are guilty of Unlawful and Reckless Driving your claim will almost certainly be denied. The law is there to ensure that people who drive in a way that puts others at risk will face negative consequences for doing so, especially if the car accident results in someone suffering a long-term disability.

Overdue Premiums 

For your car insurance to be valid, your premiums must be up to date. If they are not, at the time of your accident, your policy provider will very likely not pay.

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Shortage of Coverage

The amount of coverage a policy provides varies. Most providers cap how much they will pay out in total. If you only have $4,000 worth of coverage and the damage comes to $7,000, you will have to pay the $3,000 out of your own pocket.

Direct Violation of Policy 

Most vehicle policies have limits and exceptions. For example, if you are driving off-road and have an accident you may not be covered. So, it is wise to check what is covered and what is not before buying your policy.

PRO TIP :

“Before Getting A Car Insurance, Always Read The Terms and Conditions Of Your Insurance”

FAQs – 

Does Health Insurance Cover Car Accident Injuries?

Usually, health insurance does not cover car accident injuries. Those costs are typically paid by one of the vehicle insurance providers. If you are not sure who should pay, it is wise to contact a legal firm like Diamond & Diamond Law for guidance.

Does an Accident in a Rental Car Affect My Insurance?

Having an accident in a rental car can affect your insurance. When you buy coverage for your own vehicle you will be asked to declare any accidents you have had. Not declaring your rental car accident may make your policy null and void.

What Happens If You Get in Car Accident Without Insurance?

If you get into a car accident without insurance, you will face a hefty fine. In some situations, the driver also runs the risk of losing their license. At Diamond Law, we have experience of helping uninsured drivers to avoid this outcome.