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Why do insurance companies deny auto accident claims?

| Sep 25, 2020 | No Fault Insurance |

Most Michigan motorists purchase automobile insurance because state law makes it a requirement. Drivers seldom stop to think about how beneficial having coverage can be if they were to have a crash. It can protect you from personally having to empty your pockets for property damage and can save you from having to fork out thousands of dollars in unexpected expenses. There’s no guarantee that your insurer will honor your claims, though.

There are a few reasons that your insurance company may deny your claim.

They may do so if they find that you violated the terms of your policy or the law. An insurer may cite the former as the reason for denying your claim if they find that your misrepresented information when you took out your coverage.

Insurers may also deny your auto insurance claim if you file for benefits while under the assumption that you still have a specific type of coverage that you no longer have. One example of this is if you file a claim requesting that your insurer cover your property damage. If you terminated your collision coverage a long time before the accident occurred, then they’ll likely deny your claim.

Your claim may also end up getting denied if your insurer finds that you exhausted your policy limits. There are generally caps on the different types of coverage that you have. You may only be able to recover up to a certain amount in damages per occupant or accident. If you exceed those limits, then it’s likely that your auto insurer will deny your claim.

While many auto insurance companies out there may deny their customer’s claim for valid reasons, it’s not uncommon for there to be some bad apples in the bunch that unlawfully do so for invalid ones. A no-fault insurance attorney can advise you of the next steps you’ll want to take in your Michigan case if your auto carrier denied your Rochester accident claim.

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