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Top reasons for auto insurance claim denials

On Behalf of | Apr 21, 2021 | Car Accidents |

Illinois drivers who pay for auto insurance expect to have full coverage when they’re involved in an accident. Unfortunately, sometimes when they file a claim, it can be denied. Understanding the most common valid reasons for denial can help you determine whether or not your insurance company is within its legal rights to deny your plan.

Policy limitations

The amount of damages awarded from a car accident is capped on every type of insurance policy. Depending on the specific type of auto insurance policy that you purchase, your claim may have been for a higher amount than what your policy coverage limit is. It’s a good idea to take a look at your policy and determine what the coverage limit is for the type of incident that you’re claiming. Car accidents will only be covered up to the maximum amount of money that your policy states.

Violation of the law

Most states throughout the nation require that a person have a valid driver’s license to be legally on the roadway. If your insurance company knows that you were driving without a license or breaking the law in some other fashion, they will not cover the accident. Some other violations of state laws may include driving intoxicated and driving without a valid auto insurance policy.

Delayed medical treatment

Insurance companies may also deny car accident claims that they believe are fraudulent. One big one is when you wait to seek medical treatment. Many times, this will cause a red flag for the insurance company, and they’ll suspect that you’re fraudulently filing a claim. The insurance company may require additional documentation to help support your case for medical coverage.

While auto insurance is there to help ensure your financial stability in the event of an accident, there are times that they may deny you coverage. In most cases, the coverage that is denied can be traced back to the type of policy that you have. However, in other cases, they may deny you for the simple fact that they believe you’re claim is fraudulent. In these cases, it’s advisable to speak to an attorney about fighting for your case.