In a Car Accident? This Is Why Insurance May Not Pay

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We buy insurance to protect us from financial problems, but insurance doesn’t always pay.


Key points

  • Insurance companies do not cover all costs. It is up to the driver to determine what is covered and what is not.
  • Buying the right products can take time, but it can pay off in the event of an accident.

After passing our driving test, one of the most important things we can do is buy car insurance. Solid insurance can be the only thing standing between us and financial hardship after an accident. Although auto insurance laws can vary from state to state, the main reason for carrying insurance is financial protection.

Buying insurance is just about preparing for the “maybe” scenario. In order to plan in advance, let’s look at the four main reasons why your insurance may pay you in the event of an accident and what you can do to prevent this from happening.

1. The publication is complete

Let’s get this out of the way first, because letting your car insurance lapse is an easy way to deny the next claim. Your insurance company will only accept a claim if the claim is valid and your insurance is paid and renewed.

Answer: If your budgeting process is a little confusing, consider paying for your insurance monthly. Settle the bill by making a payment through your bank so you don’t have to worry about late or missed payments.

2. Except for motorists

This is a little tricky but easy to change. It is common for insurers to include “driver exclusion” clauses in the policy. Let’s say you bought a new insurance policy. It is easy to sign on the dotted line without reading the details of the process. For example, your policy may say that your policy applies if you or a close family member is driving at the time of an accident.

Now, imagine going out with friends one night, having a few drinks, and letting your friend drive you home in your car. On the way home, the friend almost fell asleep and got out of another car. Since your partner is not a member of your immediate family, the claim is rejected.

Answer: Check the driver’s license before purchasing a policy and don’t let anyone but the insured driver behind the wheel.

3. Damages and injuries are not included

In the event of an accident that results in an injury, your insurance company will try to determine what caused the injury. Insurance policies contain a list of exclusions — events that do not cover damage or injury. For example, the law may include willful damage. Let’s say you’re at a football game, people are talking to a fan of the opposing team, and that person follows you to your car and kicks the door, kicking it badly. When you look at the damage to the car, the person injures you. Because damage is not included, none of these things can be answered by your insurance company.

Answer: As with all motor vehicle exclusions, make sure you fully understand the damage or injury claims. Say a company excludes hurricane damage and you live in an area of ​​the country where hurricanes are common. Before you make a plan, make sure you have the type of support you need. (Also, you might want to watch what you say to the critics in the game.)

4. It is not known who is guilty

Once a claim is made, your insurance company will begin to investigate who is at fault. If you are involved in an accident with another vehicle, it will want to know which driver caused the accident. For example, if you are hit by another driver’s negligence, that driver’s insurance company should — in theory — be the one to pay for the damages. However, if the insurer cannot prove that the policyholder has done anything wrong, they can deny the claim.

Answer: There are three things you should do in an emergency.

  1. Call the police. If you can drive safely, pull over to a safe place. No matter how much the other person begs you not to call the police, make the call. An impartial police report is one of the best ways to build your case.
  2. Take pictures. Take out your phone and take pictures of what’s going on with the cars from all possible angles. If, for example, your rear bumper is dented, it will be difficult for another driver to tell that you hit them.
  3. Insurance information is another driver. When they offer you an insurance card, you may want to do a quick check to make sure the coverage is still valid. Either way, be as fair as possible and let the police do their job.

The key with all auto insurance is to fully understand what you are committing to. Some policies are better than others and some insurance companies are more pleasant to work with than others. Even if it takes a long time to establish the policy you have, take the time to read the policy and look at the customer satisfaction of the insurance company.

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