How can my own insurance company deny my claim?

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How can my own insurance company deny my claim?

When you are involved in a motor vehicle accident, it is a scary time. The other driver is likely lying about what happened, and the other insurance company is running with that story. And, unless you have a dashboard camera, the only party that is on your side is your insurance company, or at least they should be, right? But, then, you get the call that they are denying your claim. How can your own Placerville, California, car insurance company deny your claim?

Maybe it was not a full denial

Perhaps, the denial was not a full denial, but an explanation of your policy limitations. Unlike health insurance that does not have policy maximums, auto insurance does have policy maximums.

As such, if the maximum policy payout is $50,000, but you hit a Lamborghini worth $400,000, your car insurance policy will not be enough to pay the claim if you are found at fault. However, if you have an umbrella policy, remember that these policies are for these exact scenarios.

Types of coverage

Another type of denial is based on your damage and the type of insurance coverage. If you were involved in a hit-and-run car accident, you need uninsured/underinsured coverage. If you do not have such coverage, you are not covered. Similarly, if your vehicle was damaged in a flood or in a natural disaster, unless you have coverage for such Acts of God, your vehicle may not be covered by your Placerville, California, insurance policy.

Fighting back

To be clear though, just because your insurance company denies your claim, it does not mean that you have no recourse. It just means you will need to fight back. You can, usually appeal internally with your insurance company.

Alternatively, the California Department of Insurance’s Automobile Claims Mediation Program is also available. If you feel you have been wronged by your car insurance company through an improper denial or inadequate compensation, you can file a claim. They will then help negotiate the dispute. Though, you can also fight it in court with a Placerville, California, attorney too.