Car insurance policies are intended to help those who are injured in an accident by providing coverage for medical and other expenses. However, there are times when a hidden clause can cause the insurance claim to be denied. It is important for drivers to know what the common hidden claims are and what they can do if they believe their claim was denied unfairly.
Unauthorized Driver Claims
Say the owner of the vehicle allows their friend to drive it to get to work and back. The friend ends up in an accident that was not their fault. The claim could still be denied because the driver is not listed as an authorized driver on the insurance. Unfortunately, this is all too common, but after being denied coverage, it is possible to appeal. In some cases, this can be successful, and the driver will be able to get compensation for their injuries.
Commercial Use Exclusion
Many car owners today will use their vehicle for full-time or part-time positions delivering packages, food, and more. Unfortunately, what they may not realize is that this is considered commercial use of the vehicle, and accidents that occur while the driver is delivering something may not be claimable under the driver’s insurance policy. In most cases, they will need commercial auto insurance even if they are only working part-time using their vehicle.
Misrepresentation or False Information
If anything was misrepresented or falsified when the insurance policy was created, it can invalidate the entire policy. If the policy is canceled for something like this, any claims can be automatically denied, even though they would typically be covered. It is crucial for drivers to be careful with what information they are putting on the application when they get insurance to prevent this from happening. If it was a simple mistake when the application was filed, it may be possible to appeal the denial.
Illegal Activity
If there is any illegal activity happening when the accident occurs, the claim could be denied. If the driver is driving under the influence, for instance, the claim can be denied even if the accident was caused by someone else. Depending on the circumstances, it may be possible to fight the denial and have the claim covered, but this can be challenging to do. A lawyer will need to help to get a better outcome for the driver.
Driving Outside the Covered Area
Most drivers don’t realize there are limits to the covered area by the insurance company. For most policies, the driver is covered if they are driving anywhere in the United States or Canada. However, if a driver goes south to Mexico and they are in an accident, it may not be covered by the insurance policy. Before traveling, it is crucial to check the policy to see what areas are covered. If the area the driver is traveling to isn’t covered, they can get international car insurance to cover the destination.
Just because your claim was denied, it doesn’t mean you’re out of luck. In fact, with the right help, you may be able to appeal that decision and get coverage for an accident. Talk to a lawyer about your situation to learn more about your specific case to see how they can help. Schedule a consultation now to get started.
