Auto insurance is a type of insurance that is mandatory in Canada and many other parts of the world. It covers the driver of the automobile, as well as pedestrians, their passengers, and the property that was involved in the accident.
You need auto insurance in order to purchase and operate your vehicle on the road. It is designed to protect you and others in the event that you are involved in an accident, regardless of who was at fault. There are also different types of car insurance to choose from.
For example, liability insurance will cover you in case you damage someone else’s property or injure another party during an automobile collision. Medical expenses and damages to the vehicle will usually be covered. Your legal fees will also be covered in the event that the affected party decides to press charges against you.
Comprehensive insurance is another popular type of insurance. It will cover damages to your vehicle that are caused by Acts of God, theft, vandalism, and arson as well.
You
can also obtain underinsured/uninsured insurance, which will cover you if the
other party involved in the collision does not have sufficient insurance to
cover your expenses, or any insurance at all for that matter.
Major Reasons for Rejection of Auto Insurance Claims
If
you are using your automobile for commercial use instead of conventional
reasons (for example, driving to and from work), then your claim may be
rejected. It may also be rejected if the damage sustained to your vehicle was
caused by your own negligence.
In some cases, the claim forms may be incomplete, or may be filled out incorrectly, which may lead to rejection. Driving while under the influence of drugs and/or alcohol will also usually lead to your auto insurance claim being rejected.
Insurable interest is mandatory. You will be unable to purchase insurance on someone or something if you lack insurable interest. If you were to obtain a policy without insurable interest, then your provider would deem it void, and you may also get into legal trouble.
A delay in intimation and policy renewal may also cause your claim to be denied. You must therefore renew your insurance policy on time to even be considered for coverage.
Tips to Avoid Getting Your Auto Insurance Claim Rejected
You need to first call up your insurance provider in order to get the claims process started. Next, you will need to actually file the claim form. Your provider will ask that you submit certain documents in order to validate or substantiate your claim.
Be sure to provide all necessary documents, and fill out all forms accurately, honestly, and completely. Insurance fraud is a serious crime, so being transparent will help you obtain the aid that you need and deserve.
Take multiple photographs of the vehicles that were involved in the crash, including pictures of the crash site, in order to provide proof of the accident. Consequential loss should also be avoided if possible, and all modifications and changes should be declared separately.
We would advise that you avoid the temptation to lend your car to family and friends. Driving safely and soberly will also help reduce the risk of your claim being denied.
Additionally, getting a medical evaluation in order to document any injuries that you sustained during the accident will greatly help your cause.
You need to ensure that you have the right coverage in order to obtain comprehensive protection. Notifying your provider as soon as possible will also help reduce the probability of your claim being rejected.
Auto insurance is designed to help protect motorists, pedestrians, and passengers, but claims need to be submitted on time and with accurate information in order to be accepted.
Benefits of Having Auto Insurance
If your automobile is damaged due to a fire or an accident, then you will be protected if you have auto insurance. As well, if your vehicle sustains damages during a riot, a theft, or even a terrorist attack, then your vehicle will be covered.
Personal accident coverage will protect you in the event that you suffer a permanent disability due to an accident, or if you are killed in a collision, thus ensuring that your family will be financially compensated. The other passengers in the vehicle will also be covered for a predetermined amount under a comprehensive auto insurance policy.
You can enjoy access to a large network of garages with the right policy. As such, you can receive cashless services in a myriad of garages should you need them. Furthermore, if your vehicle is involved in a collision that causes any losses or damages to another person’s property, then you will be protected against legal liabilities.
Moreover,
you will be eligible for a no-claim bonus for every year that you do not file a
claim. For example, you may be rewarded for your prudent driving with a
discount on your monthly premium. In sum, auto insurance serves as a financial
lifeline that will protect you and your loved ones in the event of a crisis.
Being Proactive
Auto insurance is mandatory, provides peace of mind, and will protect you, your passengers, and the other drivers on the road in the event of an accident. There are also some common auto insurance mistakes that you should avoid.
For instance, you should remember to update any life changes that you have recently undergone. However, you need to be upfront about your record in order to avoid any discrepancies in the future.
What’s more, you must report the actual location of your vehicle. If you fail to do so, then the accuracy of your quote will be significantly impacted. Failure to list every driver of your vehicle will also cause problems in the future.
Finally, failure to disclose business uses (such as Lyft or Uber driving) may also lead to a lack of coverage in the event that you are involved in a collision.
Sources:
5 Benefits of Car Insurance (hdfcergo.com)
5 Tips for Avoiding Having Your Car Insurance Claim Denied | GetJerry.com
Understanding Insurable Interest in Life Insurance (harborlifesettlements.com)
6 Types Of Car Insurance in 2022: Explained In Layman’s Terms (motor1.com)
Understanding Auto Insurance (ibc.ca)
Mistakes to Avoid While Applying For Auto Insurance | BIG Insurance Solutions