Most Common Reasons for an Auto Insurance Claim Denial

It’s sad when an insurance claim is denied but you can make sure it never happens to you.

List All Household Members Over the Age of 14

Make sure that you tell your insurance agent or broker about everyone who lives in your household over the age of 14.  Anyone who is of driving age must be listed on your policy regardless of whether they are licensed have their own car and insurance policy or ever have access to your vehicle.

List All Regular Drivers Living in Your Household

It's also important to notify your agent or broker when someone moves into your home during the middle of a policy term. It’s important for insurance companies to know who might have access to your vehicles. This is the number one reason, countrywide, that claims are denied.

Using Your Personal Vehicle for Business Purposes

Another reason that insurance companies will deny a claim is business use. If your auto is used for any kind of business use, whether its transporting goods or equipment or just used to drive from business to business if your occupation is sales, you either need a “Business Use” endorsement added to your auto policy or you need a Commercial Auto insurance policy.  This is the second largest cause for a claim to be denied.

Changing Garaging Address

Most insurance companies will only allow vehicles to be garaged at one address, so if your relative or a friend has their vehicle on your auto policy and they live at a separate address, they need to have their own policy. This is the third biggest reason that insurance claims are denied country wide.

Be safe and ask your insurance agent or broker today if you are covered.

Disclaimer:

This material is for general informational purposes only. Any products, services, and discounts referenced herein are not available in all states or from all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all instances, current policy contract language prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions, and exclusions may apply.

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