Reasons Insurance Won't Cover an Accident After a Wreck

If your insurance company denies your claim after a wreck, it can be frustrating and overwhelming. One reason insurance won't cover an accident is if the driver was under the influence of alcohol or drugs at the time of the crash.

Driving under the influence is a serious offense and can lead to severe consequences, including denied insurance claims. In fact, according to the article, drivers who are under the influence are more likely to be involved in accidents and may not be eligible for insurance coverage.

The type of vehicle involved in the accident can also impact insurance coverage. If the vehicle is not roadworthy or is not registered, the insurance company may not cover the damages. For example, if the vehicle is a classic car that is not registered for road use, the insurance company may not provide coverage in the event of an accident.

If you're involved in an accident and your insurance company denies your claim, it's essential to review your policy carefully and understand the reasons behind the denial.

Insurance companies may deny your claim if they believe your injuries were pre-existing at the time of the accident.

To avoid this, it's essential to provide substantial proof that links your injuries to the accident, such as medical reports and evaluations. This will help establish that your injuries are a result of the accident, not a pre-existing condition.

The extent of your injuries is also a common reason for denial, especially if the insurer believes you've exaggerated the severity of your injuries. In some cases, the insurer may not believe that a low-impact crash could have caused a serious injury like a spinal cord injury.

Failing to file a personal injury claim in a timely manner can lead to denial of your claim.

Most insurance companies have a strict limit on the time you have to file a claim, typically within a "reasonable" amount of time after your accident.

Some companies have specific definitions for what is reasonable, while others do not.

If the company doesn't feel that you filed your claim on time, they can deny your claim.

In many cases, this could be a bad faith tactic designed to prevent you from recovering compensation from a legitimate claim.

If the insurance company denies your claim, it's likely because they don't believe the accident caused your injuries.

The insurer may claim that your injuries were pre-existing at the time of the accident, so it's essential to provide clear evidence to link your injuries to the accident.

You need substantial proof that your injuries are a result of the accident, or the insurance company will refuse to approve your request for compensation.

This means providing evidence to support your claim, such as medical records or witness statements, to show that your injuries are directly related to the accident.

If your request was denied, seeking legal guidance is a good next step. This is because a lawyer can help you understand your options and what to do next.

You can ask for a written explanation of why your request was denied. Sometimes, all it takes is a little more information to resolve the issue.

If you're not satisfied with the explanation, you may want to consider filing an appeal. However, this should be done with the guidance of a lawyer.

If the appeal fails, you may still have options. For example, if you suspect bad faith, you may be able to take further action.

Insurance companies need clear and specific information to process your claim. This includes details about the accident, the parties involved, and any contributing factors.

If you're unable to provide sufficient information, your claim may be denied. In California, for instance, insurance companies will carefully investigate accidents to determine fault.

A lack of evidence to establish fault can also lead to denied claims. Insurance companies will only agree to pay if there's clear evidence showing their policyholder is to blame.

Not informing your insurance broker about changes in your life can have serious consequences. This includes failing to update your contact information, payment information, or the number of people driving your vehicle.

A change of address is a crucial update to inform your broker about. If you move to a new home, make sure to notify your insurance company right away.

If you buy or sell a vehicle, you'll need to let your broker know. This is because your insurance coverage is tied to the vehicle, and any changes to the vehicle's ownership can affect your policy.

If someone else is regularly driving your vehicle, you must inform your broker. This is especially important if the driver has a poor driving record or if they're not listed on your policy.

You should also inform your broker if your vehicle is damaged, even if you're not making a claim. This will ensure that your insurance company is aware of any potential issues with your vehicle.

Here are some common changes that you should inform your broker about:

By keeping your broker informed, you can avoid denied claims and ensure that you're properly covered in case of an accident.

Insufficient insurance can be a major issue when dealing with damages. This is especially true if the other party's insurance doesn't cover the full extent of the damage.

Having a Mercedes-Benz worth $80,000 and the other party only having $15,000 in property damage insurance can leave a significant gap. This is exactly what happened in a hypothetical scenario where the insurance company was only on the hook for $15,000.

You need to have a larger insurance policy to cover the remaining $65,000. This is why it's essential to have a good insurance policy in place.

Lack of evidence can be a major obstacle in getting your insurance claim approved. Insurance companies need clear proof to show that their policyholder is to blame for your injuries.

Companies will only pay out if there's clear evidence to show that their policyholder is responsible. This means providing detailed information and medical reports to support your claim.

A dispute over fault or liability is a common reason for insurance claims to be denied. In California, anyone who contributes to an accident can be held responsible for resulting injuries.

If there's evidence to show that you or someone else had a contributing role in the accident, the insurer will likely reject your claim. This is why it's essential to provide clear and direct evidence to establish that all of your injuries were a result of the accident.

Insurers will carefully investigate your accident to determine if you or anyone else had a contributing role. They may even claim that your injuries were pre-existing at the time of the accident or that your own conduct made the injuries worse.

Always provide clear evidence to link your injuries to your accident. This means gathering medical reports, evaluations, and other relevant information to support your claim.

Some insurance companies will deny claims because of exclusions and limitations in your policy. This can include damage caused by intentional acts of vandalism or damage caused by storms.

Driver exclusions are also common, where certain drivers are not covered by the policy, even if a legitimate policy exists. This means the insurer can deny your claim if your injuries were caused by an excluded driver.

You need to check your policy to see who is and who is not a covered driver. If an excluded driver was driving the car at the time of the accident, they won't be covered when you file a claim.

If you're partially at fault for an accident, the insurance company may assign a percentage of fault to you. You could be found 20% at fault, for example, if the insurance company puts 80% of the blame on their insured.

The insurance company will still pay out a portion of the damages, but you may have to pay out of pocket for the percentage of fault assigned to you. This is based on the example of 80% fault on the other party and 20% on you.

You won't be completely left with the bill, but you'll need to cover the costs for the 20% of fault assigned to you.

If you lie on an application for car insurance, your policy could be voided if the misrepresentation is discovered. This is considered insurance fraud.

Lying during a claim can also have serious consequences. A portion or even the entire claim can be denied if the misrepresentation is severe enough. This includes exaggerating the damage, claiming pre-existing damage was part of the claim, lying about the circumstances of the accident, or intentionally damaging your vehicle.

Insurance companies will carefully review the insurance policy held by the person who caused your accident or injury. If there's an issue with that particular policy, the company may deny your claim.

Here are some examples of lying during a claim:

If you fail to complete your car insurance application or lie on it, your policy may not be issued. This means you won't be covered, and you'll need to complete the application or correct the misrepresentation to get coverage.

Insurance policies contain a list of things that will not be covered, including intentional acts of vandalism or damage caused by storms.

You really need to check your insurance policy to see who is and who is not a covered driver, as certain drivers may be excluded from coverage.

Driver exclusion clauses are common in insurance policies, meaning that even if a legitimate policy exists, certain drivers may not be covered.

A valid insurance policy doesn't necessarily mean that all drivers of a particular vehicle will be covered.

If you only have third party liability insurance, the damage to your vehicle won't be covered if you're at fault in an accident or if a wind knocks a tree onto your car.

Personal property in your car won't be covered by your car insurance, but will be covered by your home or condo or tenant's insurance.

Most personal policies won't cover commercial vehicles, so make sure you have the right policy for the type of driving you want to do.

If you get into an accident while driving a commercial vehicle without the proper coverage, your insurance company will deny the claim.

Insurance companies will carefully review the insurance policy held by the person who caused your accident or injury, and can deny a claim if there's an issue with that policy.

Insurance companies will only pay if there's a valid insurance policy in place, and if coverage has lapsed due to non-payment of premiums, cancellation, or the insurance company no longer existing, they will deny the claim.

Insurance companies will not hesitate to take advantage of you if you're not represented by an attorney. They'll suspect that you're not entirely familiar with your legal rights and will use that against you.

They may unnecessarily delay the processing of your claim or make it difficult for you to speak with a representative. This is a common tactic used to make you buckle under financial pressure and eager to accept any lowball offer they may extend.

Failing to provide a salvage or car inspection report when requested by your insurer can have serious consequences.

Your policy could be voided, and any claim denied if you don't meet this requirement.

If you're unable to salvage your vehicle, it's essential to understand the process and what's expected of you.

Your insurer will request a salvage or car inspection report in certain situations, and failing to provide it can lead to policy voidance and claim denial.

If you hit an animal with your car, you're covered if you have comprehensive coverage. This type of coverage pays for damage to your car that isn't caused by a car crash.

You'll likely have to pay a deductible to get your car fixed. State law doesn't allow your insurance company to drop you if you file a claim for hitting an animal, but it could raise your rate when you renew your coverage.

Taking a defensive driving course can actually save you money on your insurance premiums. Companies often offer discounts for completing a defensive driving or driver education course, but each company sets its own discount terms.

If you're considering taking a defensive driving course, you might be able to get a discount from your insurance company.