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Five Reasons Why Your Texas Car Insurance Claim Can Be Denied

As a resident of Texas, you may be surprised to learn that your car insurance claim can be denied for any of the reasons below. You work hard for your money, and the insurance companies do the best they can within the law to make sure you pay for as much as possible, instead of them!

Learn how to make sure your Texas car insurance claim is accepted

Don’t be taken by surprise by your national or local Texas car insurance company, take steps now to make sure your insurance claim is accepted.

1. You have changed your address and failed to notify your car insurance company

Car insurance premium rates are based on complex algorithms that include several factors. Your insurance company takes into account such things as crime rates in your neighborhood, your age, education, type of car, marital status and your commute distance to your work. All of these add up to certain risks for the insurance company…when they place their financial “bet” on you. Whether you move down the block or out of state, notify your car insurance carrier right away, otherwise they could deny your claim when you need it most.

2. You did not disclose additional drivers of your vehicle

Technically, your vehicle is insured–not the driver–so if anyone drives your car and gets into an accident the damage to the car will be covered by your insurance. However, if you have a live-in family member who routinely drives your car, they must be listed as an additional insured driver on your policy. For instance, if your licensed teenager is not listed on the policy your car insurer could deny claims for bodily injury even if that coverage is included in your policy. Teenage drivers by way of example, are high risk drivers and your car insurance company would require higher premiums if they routinely drive your car. If they routinely drive your vehicle and are not additionally named as an insured, your claim will likely be denied.

3. You use your vehicle for undisclosed purposes

If your truck is your main business vehicle and it holds all your equipment; make sure you let your car insurance company knows. Otherwise, if all your tools are stolen out of the truck bed while you’re inside a homeowner’s kitchen repairing their electrical wiring, your insurance claim could be denied. The same holds true if you like to use your vehicle for off-road racing on the weekends. It’s better to be honest and tell your agent about your hobby so she can write you up a good policy that includes coverage for all your vehicle’s uses. The little bit of extra premium you may pay, will more than cover for the replacement cost of stolen items or repairs to your vehicle if needed.

4. You can’t provide proof of loss when car insurance claims are filed

Whether in Texas, or anywhere in the states, it is common for items such as laptops, purses, luggage and wallets to be stolen out of vehicles. But if you routinely keep anything else of value in your car, make sure you document both its value and the fact that it is kept in your car or truck.

Documentation should include photo evidence of its location and/or receipts. For example, you might be a musician and you store your drums in your van for gigs. If the van gets rear ended while you’re minding your own business at a red light and the drums are damaged, you might not get any compensation for the drums unless you have provided copies of receipts and prior evidence of your practice of carrying your drums in the van. Although this seems harsh, it’s just one way that car insurance companies protect themselves against fraudulent claims.

5. Events did not occur as you say they did…don’t lie to your car insurance company

Your car insurance company has the right to send out a claims adjuster and a claims investigator if they feel it’s warranted. These trained professionals are experienced and savvy. Their job is to get to the truth and determine who caused the car accident. Car insurance companies in Texas pay adjusters a high salary to do their job well.

If the accident did not happen as you say it did, they will figure it out and your car insurance company might refuse to honor your claim. Worse, you could be charged with insurance fraud. Don’t tell your car insurance company tall tales. It never pays.

Be Honest with Your Texas Car Insurance Agent

The final lesson is to always be honest with your Texas car insurance agent. Don’t give them any reason to turn down your claim. To learn more about reducing your Texas car insurance costs, use our car insurance comparison quote tool to find the best Texas car insurance company to fit your family or business needs.