Why are Some Auto Insurance Claims Denied?

If you own and drive a vehicle, you very well know that you must have auto insurance by law. That insurance gives you and other drivers on the road piece of mind that in the case of an accident, everyone has the coverage that they need. However, there are times that you auto insurance doesn’t give you the coverage you are looking for after experiencing a collision. InsureWise LLC is here to talk about what circumstances in which your auto insurance may not cover you after getting into a collision.

Instances Where Your Auto Insurance May Not Cover Your Collision

It is important to know and understand every detail about your auto insurance coverage. Knowing what they cover and what they won’t, can help you avoid getting into financial trouble in the case that you are involved in a collision. Here are circumstances in which you could be in trouble.

-       Illegal Activities: If you have been racing or engaging in other illegal activities while driving your vehicle, your policy may not cover the damages. Even worse, you may find yourself facing fines and jail time as well.

-       Fraud: Believe it or not, there are some drivers that will try and stage a collision to claim it on their auto insurance. These kinds of fraudulent claims don’t do anyone any good as they are expensive for auto insurance companies and lead to increased premiums.

-       Coverage: After getting in a collision, you may find that your policy doesn’t cover it. Perhaps you didn’t purchase collision insurance, or you had rented out your vehicle to another driver. Also, if the driver has been intentionally removed from your policy, there won’t be any coverage if they get in an accident.

-       Repairs: If you have a deductible on your plan, the repairs needed to fix your vehicle may not cost as much as the deductible does. In that case, you would just handle the repairs yourself.

-       Transporting Passengers: Personal auto insurance policies don’t always cover collisions when you have paying passengers in the vehicle. If you are using your vehicle as a taxi or a bus, you may need to make an update to your policy to make sure you have the coverage you need.

-       Expired Policy: If your insurance policy has been cancelled or has expired, you won’t have the coverage needed in the case of a collision. This can happen when you fail to pay for your policy and continue to drive without getting new coverage.

Auto Insurance & More in Las Vegas, Henderson, Reno, North Las Vegas, Summerlin, Paradise, Spring Valley, Sunrise Manor, Enterprise, Sparks, Carson City & State of Nevada

At InsureWise LLC, we know how important it is that you have the coverage needed when you’re driving your vehicle. This is important for not only you but the drivers around you as well. We can help you choose the policy that will give you the coverage you need based on the vehicles you drive and the lifestyle that you live. Call us today!

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