Top Reasons Your Car Insurance Claim Will Be Denied

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It is important to insure your vehicle. It is a smart financial decision to insure our vehicles.

Some people are unaware that your auto insurance may not pay your claim in certain circumstances. These are just a few of the reasons they might deny your claim.

Cars modified

Remember the television series “Pimp my Ride”, where drivers were chosen to have their cars “tricked out” and modified? It can be fun to modify your car so it looks exactly how you want it to be, but it might not be the best move for your insurance company.

Many car modifications can cause the warranty to be voided. This is a serious offense in the insurance industry. While adding sheepskin seats covers and fuzzy dice is not going to cause problems, any changes in the functioning of your car, such as the engine or exhaust, can lead to your insurance company denying a claim.

Talk to your car insurance provider if you have any major plans for your vehicle. They may make a small note, or raise your rates. They may also drop you completely in some cases.

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Failure to Pay

Although it may seem obvious, many people have discovered the hard way that failure to pay your premiums can lead to coverage being dropped. Talk to your insurance provider if you are unable to make your payments. Give them notice if you are unable to pay your lease.

Find cheap auto insurance quotes if you are dropped. Then, try to get your coverage back as soon possible. You may be able get lower rates if you are able to make semi-annual payments.

Fraud

It sounds like insurance fraud is something you see only in movies. It is more common than you might think. Many people lie to their insurance companies. Although they may believe it is a way to save some money, they will likely be fired and sued if they find out.

Insurance fraud can include lying or even very serious charges. Both are dangerous and unnecessary. Faking injury to or damage to your vehicle to obtain money is the most serious. Lies about your vehicle’s annual mileage or other important information would be the least serious.

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You could get into serious trouble for lying to the authorities or committing fraud. It will also make it difficult to find a new provider of insurance.

Driving with a suspended license

After a DUI conviction or any other driving offense, calling your insurance company may not be your first thought. However, it should be. Insurance companies want to know about your driving history. They will even ask you to inform them if you have any questions, such as “I’m not allowed anymore to drive.”

If you have a suspended license and you are involved in an accident or need to file a claim, you might not be able to get your money back. It is best to tell your insurance company everything about your car and driving habits.

You are probably smarter than to lie, defraud, cheat, or simply not pay your insurance company. It’s not worth the long-term and immediate consequences.