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Reasons car insurance companies deny claims

On Behalf of | Jul 5, 2022 | Auto Insurance Claims

We trust our car insurance providers to help us put our lives back together after a car accident, but unfortunately, car insurance companies commonly deny claims. In this post, we will discuss some common reasons insurers cite when they deny claims.

What were you doing?

What you are doing in the car at the time of the accident matters. If you were using the car in a way that was not approved by the insurance company, or in a manner that was not allowed by your car insurance policy, the insurance company can (and, likely will) deny a car accident claim.

For example, if you get into an accident while you are driving for a rideshare company without a rideshare car insurance rider, your car insurance company will likely deny your claim. In fact, this could happen to you even if you are just running errands for your boss, or if you are using your vehicle for entertainment purposes – for instance, drag racing at a private track, stunt driving, etc. If you were using the car in a way that is not covered by your policy, your insurer may deny your claim.

Illegal activities

Using your vehicle for illegal activities or while doing illegal things could also void your car insurance policy. For example, if you get into a car accident while street racing. You may even face a denial if you get into a car accident while drunk or high on drugs.

Living in your vehicle

Some live in their vehicles because they can’t afford other housing. Others have converted their vehicles into dwellings because of the popularity of tiny house living and social media posts about “vanlife.” Unfortunately, if a car accident occurs while you are using your car as a dwelling, your car insurance may attempt to deny your claim.

A denial is not the end

For our Renton, Washington, readers, please, know that just because a car insurance company denies your claim, it does not mean you have no options. Your insurance company could be illegally or inappropriately denying your claim, and you may have legal options to protect your rights.