Compensation in the case of a risk occurring is the ultimate goal for every insured party. Irrespective of the insurance cover you purchase, there are stringent laws that must be followed to file a claim successfully. Automotive insurances and health insurance are the most commonly claimed covers throughout the country. How fast one gets compensation depends on the car insurance company they are insured by. The amount one receives as compensation depends on the damage caused by the risk and type of cover they purchase. Comprehensive insurance covers tend to attract more funds when claimed. However, it is not a guarantee that one gets compensation for a risk that has occurred. In cases where one is not legally responsible for the accident, the claim is not accepted.
Table of Contents
- Why an Insurance Claim Might Be Declined
- Filling A Successful Insurance Claim
Why an Insurance Claim Might Be Declined
As stated earlier, it is not guaranteed that one gets compensation once a claim is filed. Due to a rise in insurance fraud, strict regulations are followed when claiming insurance covers. While some of these regulations are state-controlled, some depend on the car insurance company responsible. Here are some reasons why your insurance claim might not be approved.
The main reason insurance claims get rejected is the omission of critical information when applying for the insurance cover. When purchasing an insurance cover, one should genuinely and completely provide the needed information to the insurer. Such information includes address, names, users of the car, and any health conditions that could lead to the risk occurring. Information about the value of the car and its condition when applying for the cover is essential. In some cases, information left out when filing the claim could lead to the claim being denied. This is the main reason for remaining at the scene of an accident until an assessor arrives or taking photographs of the accident for reference.
When one is not legally responsible for the risk-
To be compensated, one must be legally responsible for the risk. Assessors from your car insurance company are usually sent to assess the damage and determine a possible cause. This is the main reason why car owners are encouraged to remain adamant and not claim responsibility in the absence of relevant authorities. One might think they are responsible for the risk, yet they might be legally innocent. In cases where you are not legally responsible for the risk, the at-fault driver covers for the losses. This is done through their property liability insurance cover. Where the at-fault driver’s insurance is inadequate, you can claim your uninsured and underinsured insurance cover.
Where the claim is excluded from the insurance cover-
Insurance policies take care of different risks. If the risk is not covered under the insurance policy, the car insurance company will deny the claim. For instance, collision insurance does not cover personal injuries that occur in case of an accident. For this reason, one should carefully select an insurance cover that covers as many risks they are exposed to as possible.
Several other factors could lead to an insurance claim being turned down. These are usually internal factors that depend on the policies of the car insurance company. They include the financial capabilities of the company. In some instances, the loss might be more than the company’s financial capabilities. Financial capability is one of the key characteristics to look at when selecting an auto insurance company.
Filling A Successful Insurance Claim
Many aspects are considered before an insurance claim is approved by insurance agencies. One must pay attention to these factors to successfully claim their insurance. The following should be done when filing an insurance claim for success.
Report the risk as soon as possible-
Once a risk occurs, you should notify the insurer within the shortest time possible. Some policies have a timeline for filing a claim once the risk has occurred. Claims filed later than the timeline are usually denied. If the accident involves injuries, you should call emergency services providers first. If the vehicle is slightly damaged, you should wait for the insurance agent to come and assess the risk and damage caused at the scene.
Start filing the claim immediately-
Some car insurance agencies have mobile phone applications that can be used to file claims. In case of a risk, you should start filing the claim as you wait for the insurance assessor. During this time, you are advised not to admit to causing the accident if another person is involved. The insurance assessor is the one to determine whether you are legally responsible for the risk. Being apologetic equals claiming responsibility which could be used against you in a court of law.
Provide all the necessary information-
As stated earlier, insufficient or false information could lead to an insurance claim being turned down. When filing a claim, you should honestly provide all the information as requested by the insurance agent. Such information includes occupants of the car and events that led to the accident.
Follow up after filing the claim-
Once you have filed a claim, you should follow up on the process to ensure you are compensated on time. In some cases, insurance claims could take longer than usual due to the absence of critical information. Following up allows you to provide additional information or clarify the already provided information when needed. If your car insurance provider is understaffed, your claim might be forgotten.
When filing an insurance claim, you should ensure the risk involved is covered by the policy. After following the entire process, the claim might be rejected if the insurance policy does not cover the risk. For this reason, consulting insurance experts is essential when selecting a cover for your car. The value of your car is used to determine the premiums and compensation you get in case of a risk. Providing a lower value when applying for the insurance cover means you get to pay lower premiums. However, you will incur financial losses as the car will be considered underinsured in case of an accident.