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Why would my car insurance company deny my claim?

On Behalf of | Feb 27, 2023 | Auto Accidents

Having car insurance is mandated in the vast majority of states, but when you are a customer, you feel like your insurance company has some responsibility to you. This is why it can feel so galling when your Atlanta, Georgia, car insurance company denies your own claim.

Policy limitations

According to insurance insiders, one of the most common reasons for full payment denials is policy limitations. Every insurance policy has limitations, so if you hit a Lamborghini, but your policy has a $50,000 limitation, you will likely be sued for the remaining balance.

Coverage limitations

A cause for insurance denials is coverage limitation. For example, limited liability coverage does not cover stolen vehicles. Uninsured and underinsured coverage is not automatic on all policies. Not all coverages are mandatory, and not all optional coverages are included. For example, older car drivers often cancel comprehensive coverage, but if non-car accident damage occurs, like a tree falls on your car, your Atlanta, Georgia, claim will be denied.

Illegal activities

Another common reason for denial is illegal activities. Even if you are fully covered, insurance companies will use any illegal activity as a reason to deny coverage, like intoxicated driving.

Other reasons

Fraud is another common reason for denial, which is usually claimed when the Atlanta, Georgia, insurance company believes you could have avoided the collision, or there is some other red flag. These red flags can be extended delays in reporting, not getting medical attention, but claiming severe injuries, etc. Suspicious activity can generally lead to denials, especially providing false information.

Resolving issues

Most insurance companies have appeals processes. However, each state has a regulatory body that oversees the insurance industry. If you believe that your insurance company has wrongfully denied or undervalued your claim, you can file a complaint with that body. In addition, you can also call an Atlanta, Georgia, attorney.