Saturday, November 6, 2010

Why Automobile Insurance Claims are Rejected

Automobile insurance claims can be a scary and confusing process. People pay a premium every month and sometimes never need to use their insurance, others pay their premium and then have an automobile insurance claim and it is rejected. Below is some further information on why automobile insurance claims are rejected.

Policy Language
Sometimes a claim is rejected based on the fact that there is an exclusion on your auto policy or you do not have specific coverage for that type of claim. It is important to know your coverage and actually read your policy. You may want to confirm with your agent or an attorney if a claim is denied based on policy language to ensure the adjuster is interpreting this correctly.

Auto Theft Claims
Sometimes a claim can be rejected or denied because there is questionable evidence regarding the theft of your vehicle. If, for instance sets of keys are missing, an insurance adjuster can determine the vehicle was not actually stolen and deny the claim. If something was stolen out of the vehicle, a stereo, speakers, etc., and you do not have sufficient receipts or proof of purchase the adjuster can say there is not enough evidence to prove the item was there.

Lack of Cooperation
An insurance adjuster needs to collect all necessary information regarding your claim in order to make a coverage determination. If there is missing information and you are not willing to cooperate with your adjuster or provide them additional details they will deny based on lack of cooperation. Your auto policy does state that you must cooperate with your insurance company.

Fraud
An insurance company does not like to reject claims based on fraud; however, if you have provided misinformation or have committed any type of fraud in your claim the insurance company can deny the claim in its entirety based on one fraudulent factor. This is a very sensitive kind of rejection. The insurance company will investigate the claim for quite some time before they will be able to reject your claim based on fraud.

Getting Legal Help
If you have an automobile insurance claim that has been rejected and feel it has been wrongly or questionably rejected it is important to contact a qualified attorney in your area. An attorney will be able to interpret your auto policy and work with the insurance company to ensure that your claim is accepted if applicable. Make sure you take all necessary documents and keep records for the attorney to review.

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