| You've received a coverage denial letter in the | | | | offence as well as having insurance coverage |
| mail after an auto insurance claim; so why has the | | | | implications. Claiming for an in-car DVD system |
| auto insurance company done this and how can | | | | when you simply had a basic radio, adding items |
| you make sure it doesn't happen to you when | | | | not in the car when it was stolen or inflating the |
| you come to claim on your car insurance? | | | | value of your vehicle above what it was really |
| Firstly, your car insurance company will issue a | | | | worth are good examples of insurance fraud. In |
| letter of denial if they complete their claim | | | | fact, most insurance fraud is easily spotted but |
| investigation and determine there is no basis for | | | | the ramifications are dire; |
| paying the claim. The most common reasons for | | | | When you discuss the claim with the insurance |
| issuing a denial of claim typically include; the claim | | | | investigator, never say anything you are not sure |
| is covered by a policy exclusion; non-payment of | | | | of. If you are asked to provide an immediate |
| premiums has lapsed the policy coverage; failure | | | | answer to an investigator's questions simply |
| to disclose material information when applying for | | | | advise them that you cannot be completely |
| insurance coverage; and equally serious, a | | | | accurate and you will answer when you can be as |
| fraudulent claim. | | | | accurate as is possible. Never sign anything you |
| By far, the most common basis for denial is | | | | do not understand; this is good advice for several |
| because the claim is covered by an exclusion | | | | reasons not least that an insurance company will |
| clause in the policy. You can help yourself by | | | | be looking to minimize the claim's dollar amount |
| making sure you are aware of what your policy | | | | (as it directly reduces their profits) and limit any |
| excludes before you take the coverage out. This | | | | potential liability from the accident or claim, for |
| is where comparing auto insurance policies is a | | | | instance, you have an accident however you only |
| handy skill to have and by no means is it an easy | | | | develop health issues related to the wreck several |
| one to acquire. Nevertheless, once you have the | | | | months later. If you signed a waiver, you have no |
| policy in force you need to be able to find your | | | | basis to go back to re-open the claim and you will |
| way around the policy conditions and exclusions | | | | not be covered. Always ask for questions and |
| so you minimize the risk that an incident will not | | | | queries to be dealt with in writing so you create a |
| be covered. | | | | record of what has been discussed and any |
| More serious reasons for denial of coverage are | | | | mutual understanding just in case you have to go |
| misrepresentation and fraud. Misrepresentation of | | | | to court; remember you will have the burden of |
| facts on your insurance application will invalidate | | | | proof in proving your claim but the insurance |
| the policy and you will not be covered; at best all | | | | company will have the burden of proof to show |
| you'll be entitled to is a refund of your premiums | | | | they have denied your claim properly. |
| and at worst, liability for the damage caused | | | | Never admit liability or that anything that occurred |
| which may run into tens of thousands or more. | | | | was your fault. In most cases, this nullifies your |
| Fraud is very serious, as it is frequently a criminal | | | | coverage! |