When you are in a car accident, the one insurance company you think you can rely on is your own insurance company. So, what happens if your own insurance company denies your claim?
You might not have enough coverage
Your denial may not be a full denial. The denial may be that your insurance policy limitations will not cover the full loss, and as a result, you will have some personal liability as a result of your auto accident. For example, if your San Francisco, California, policy limit is only $100,000, but you hit a car worth $500,000, your insurance company will not approve the full claim that will be well above your policy limitation ($100,000 vs. at least $500,000).
Wrong type of coverage
Your denial also may be based on the type of coverage you have from your insurance policy. For example, depending on your state, uninsured/underinsured coverage may not be automatically added to your San Francisco, California, insurance coverage, so if you are involved in a hit-and-run auto accident, you may not be covered.
If you canceled your comprehensive coverage because your car is old, you may miss out on important coverage too. For example, damage not caused by auto accidents will no longer be covered.
Illegal conduct
If you were doing anything illegal when the motor vehicle accident occurred, your insurance company may deny coverage. Of course, they may still elect to cover the accident, but they may use the illegal conduct to deny coverage.
Do not take, “no” as the final word
Just because your San Francisco, California, insurance company said, “no,” does not mean that is the final word. Internally, your insurance company likely has an appeal process. In addition, California has the Department of Insurance’s Automobile Claims Mediation Program. They can help you negotiate disputes with your insurance company. And, of course, you can always contact an attorney as well.