Car insurance companies having you pay premiums, not from paying you after you have been in an accident. In fact, their profit margins may depend on paying you as little as possible. To that end, they have clauses in their policies that allow them to invalidate claims.
Natural disasters and flooding
It may come as a shock to our New York, New York, and Scranton, Pennsylvania, readers, but if your car is washed away in a flood, your car insurance company may deny your claim. The same result may happen if it is destroyed in any other natural disaster, such as a tornado, hurricane, earthquake, sinkhole, etc.
If you get into an accident while using your vehicle for a business or commercial purpose, you may run into an insurance denial. For example, if you get into a car accident while running an errand for your boss, your insurance may deny your claim. Remember, the insurance company is looking for any reasons to not pay you.
Another common reason for a car insurance claim denial involves illegal activity at the time the accident occurred. This could be from illegal street racing, drug dealing, drunk driving, etc. The insurer could try to deny a claim if you get a ticket as a result of the car accident, even if that ticket was unrelated to the car accident itself.
Car insurance companies are not your friends
While car insurance companies like to say they are on your side or that you are in good hands with them, they are not your friends. At some point, you may face a car insurance denial after a car accident. An attorney can advise people about their options.