If you’ve ever filed a claim with your insurance agent or provider, you probably know that insurance matters can get messy. Usually problems arise when policy holders are misinformed, or have incorrect expectations when it comes to their coverage. Regardless of the type of insurance claim you are making, there are a number of common mistakes or misunderstandings that can result in your claim being denied. By avoiding these pitfalls in the first place, you can avoid losing out or having your claim take longer than necessary.
Vague Claims
You must remember that an insurance company is in the business of making money. For this reason, it will require quite a bit of effort on your part in order to get what you want or deserve. You need to do the initial legwork, so be very specific about the incident that gave rise to the claim, what you are claiming for, and provide the insurance policy number under which you are covered. The more specific the information you offer to the provider, the process will go more smoothly, and is less likely to end in a rejection.
Poor Documentation
This can require multiple interactions as the insurance company may, for example, demand additional estimates for a repair process. Many insurance companies will send an adjuster out to review physical damage, but some rely solely on submitted documentation. Information is key, so pay particular attention to dates and take note of any witnesses if relevant. Not everything may be required as part of the claim, but it can help if it is rejected. With smartphones everywhere these days, having pictures of damage is expected.
Are You Really Covered?
One unfortunate reason claims are rejected is that people are not actually covered when they think they are. Look for riders or exceptions that may modify your coverage. Be aware that lack of due care on your part may be grounds for a claim, or part of a claim, to be denied. For example, valuables left in plain view on the back seat of a car may not be covered for this reason.
Illegible or Incorrect Claims
A claim can be rejected for as simple a reason as it’s illegible, or information is incorrect. Don’t give them reasons to deny your claim. Double-check information before you send it in, and, if it is rejected, find out if the reason for denial requires a simple fix. Many policy holders become frustrated when a claim is denied due to misinformation, but you can’t expect your insurance agent to catch an incorrect address, one wrong number in the paperwork, or a slight mistake you have made. Do your absolute best to ensure all information is accurate—it will only help the process.
Policy Has Lapsed
Sometimes, people don’t realize that their policy has lapsed, therefore making it impossible for the agency to accept the claim. Keep up to date on your premiums or your policy may no longer be in force. Scheduled automatic payments can help with this, but you should also check periodically to make sure they are going through.
If your insurance claim is rejected, be sure you understand your policy in clear terms before you become enraged and make an angry phone call to your agent. In the future, make certain everything is documented to maximize the likelihood that your claim is accepted and processed in a timely manner. Don’t leave everything up to the insurance company—take responsibility for your side of the claim and put in the effort to make the process as easy as possible in order to increase your chances of a favorable outcome. The information for this article was provided by the professionals at Steers Insurance Limited who provide car insurance in Labrador.
This article was written by Dixie Somers, a freelance writer who loves to write for business, finance, women’s interests, and technology. She lives in Arizona with her husband and three beautiful daughters.
Photo credit: mrindc.wordpress.com
