Having insurance can save you a lot of expenses. Whether it’s due to car accidents, hospitalization, and others, an insurance premium can save you from out-of-the-pocket expenses which could prove costly on your part. However, all of that could change with a denial of insurance claims. According to Abel Law Firm, it could be frustrating on your part if the financial assistance you are expecting will not arrive.
When this happens, you will find yourself looking for answers on why your insurance claim was denied. There could be several reasons behind it. In this article, we shall look at the common causes for the denial of insurance claims:
1. Material Misrepresentation
The most common cause for your insurance claim getting denied is failure to provide the most current address and other changes in your information. While this may seem irrelevant in so far as changing your policy rate, your lack of due diligence could result to payment of incorrect rates and you could also be committing a certain kind of fraud.
2. False and Fraudulent Claims
Insurance policies are designed to provide protection but other use it as a way to profit. Rejection of your insurance claim may have been due to falsified information in order to get something extra than what you should be getting. The worst part is that not only will your insurance claim be denied but you could also face serious legal implications. Also, you may become blacklisted and you may not be able to get a policy in the future.
3. Unlawful Acts
If your insurance claim is related to irresponsible acts such as drinking and driving, stunt driving, driving without a license, and other unlawful acts, it is likely that your insurance claim will be denied.
4. Your Claim Is Not Covered By The Provider
Depending on the claim, some insurance companies may not provide coverage for what is being claimed. For instance, some providers do not cover accidental death. So be sure to know your coverage before purchasing a policy.