Insurance companies have amazing slogans insinuating the interest of the clients only. Sometimes you might think that they are some angels sent to leverage all your misfortunes. As much as it appears so, insurance companies are also businesses. They are there to create a win-win situation where you, as a client, can be saved from the gory nightmares of uncertainties while, at the same time, the insurer needs to make some profits to remain afloat. Therefore, insurance companies, including motor vehicles, can deny you auto insurance coverage. Certain circumstances provide them with adequate reasons to deny you insurance.
Denying auto insurance coverage and claim rejection- The difference
Before we look at the circumstance that may cause a denial of coverage, we first need to understand the difference between claim rejection and coverage denial. For claim rejection, you need to understand that an insurance company may not always provide a clear reason for refusing to give you insurance. In such a case, you need to request a written explanation if you cannot find an obvious reason, like a claim. On the other hand, for a denial of coverage, an insurer may decide not to offer you coverage from the beginning or part ways with you if your claim is too expensive. In another case, they might decide to terminate your policy when it comes up for renewal based on your behavior on the road.
On which grounds can a car insurance company deny you coverage?
If a company thinks that the stakes or the risks are too high for them to ensure you, they will deny you policy coverages, insurance coverages, or any other insurance policy. For example, if you are a dishonest or careless driver who might need insurance services with every little ride, you might get rejected by an insurer. If that happens, understand that they had the right to do so, but you also have a right to have them inform you about their decision. Additionally, you should know that you have a right to demand that they grant you enough time to arrange for an alternative. The other reasons why your insurance company may decide to deny you coverage or reject your claim are listed below;
– Exceeding the limits of their policy
– Breaking traffic rules
– Making claims that are too many
– Your car may be too expensive to grant coverage
– Creating fraudulent claims
– Being dishonest on your application for a car insurance policy
Final thoughts on auto insurance coverage
If you want to earn the trust of your car insurer, you will have to report every uncertainty or accident, even if it is a parking ticket. That is because the insurance company has expectations of complete honestly to provide you an auto insurance coverage. Furthermore, you will also need to inform your insurer if your circumstances change or your move. If your insurer suspects that you could be storing a car in a safe garage or an area of low crime and it is damaged in a different environment, you could be denied a claim.