Car Insurance 2020: Top Reasons For Having Car Insurance Claims Denied

Share Article is a top auto insurance brokerage website, providing car insurance quotes online from trustworthy agencies all over the United States. This website explains the main reasons for having a car insurance claim rejected.

News Image
“Missing payments, fronting or using a personal vehicle for business are solid grounds for having a claim rejected. But they are not the only reasons,” said Russell Rabichev, Marketing Director of Internet Marketing Company.

Car insurance claims are denied for not respecting the terms of the contract or lying to the insurer. Having a claim denied means that the policyholder will pay everything from his own finances. Find out more about the top reasons for a claim denial and get free quotes from

An insurance company may choose to deny a claim for the following reasons:

  •     Policy limits. Drivers should always be aware of coverage limits. The company will not reimburse any damage beyond the coverage limits. They will pay the maximum limits and the difference will have to be paid by the policyholder. Those limits are selected when a car insurance was purchased.
  •     The vehicle was driven by an undocumented driver. All drivers must be declared in the contract. Any other person that drives the car and is involved in an accident will not be covered. The most common scenario is when the policyholder lets a friend or relative use the car and he gets involved in an accident. Insurance companies will reject ulterior claims.
  •     Missing premium payments. If the policyholder no longer pays the premiums he is no longer covered and his claim will be rejected. Furthermore, not paying the premiums may determine the insurer to cancel coverage and cause an insurance lapse. Insurance companies consider drivers with recent lapses “high-risk”.
  •     Unapproved customization. The client can void the entire coverage if he installs different parts and devices without informing the insurer and getting its approval. Customizing the engine and fuel systems are likely to make the insurer drop the client if they are done without the company’s consent. Talk with the insurance company before adding customized parts. Many companies even offer customized-equipment coverage.
  •     Claims for coverage that was not purchased. Each policy covers only specific events. For example, collision coverage will not cover damage caused by fire or earthquakes. Carefully read the terms of the contract and ask representatives about all covered scenarios.
  •     The personal vehicle used for business Most vehicles are insured for private use, which includes using it to get to and from work on a daily basis. If the policyholder will be using the vehicle during the day to perform your work duties, this will have to be disclosed. Otherwise, if the car is involved in an accident while performing work duties, ulterior claims will be rejected. is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc.

For more information, please visit

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gurgu Ciprian
Visit website