5 Reasons Your Car Insurance May Not Cover You After A Collision

Your car insurance policy is designed to protect you and your vehicle when you need it most, in the event of a collision. However, there are certain situations when your insurer may deny claims for damage to your vehicle after a collision. Here are the most common situations:

  • Your claim isn’t covered by your policy. For example, you decided not to purchase collision coverage (the coverage you need if you’d like to be reimbursed for repairs following an accident), or an excluded driver (someone you have intentionally removed from your policy) was driving your vehicle at the time of the accident.
  • Repairs to your vehicle cost less than your deductible. If the damage to your vehicle will cost $300 to repair and your deductible is $500, you’ll be responsible for paying for the damage. 
  • You’ve made a fraudulent claim. A fraudulent claim is not only dangerous, but expensive. Overtime, an increase in false claim payouts could lead to higher premiums for everyone who had car insurance.
  • Your policy has been cancelled or is expired. For example, if your policy was cancelled for non-payment and you continue to drive without purchasing new coverage. You won’t be protected in the event of an accident.
  • You were using your personal vehicle for business purposes without commercial coverage. If you’re in an accident while making deliveries for your business, your claim won’t be covered. In addition to a denied claim, your insurer may also cancel your policy for failure to disclose the use of your vehicle. Learn about the difference between a personal and commercial auto insurance policy.

Most of these situations are avoidable. Make sure to follow the rules of the road, drive safely, and speak with your insurance broker to make sure you have the right coverage. Here are our 10 tips for safer highway driving.

If you make any changes to how you use your vehicle, it’s always worth contacting your insurance broker just to be safe. It’s important to have car insurance that will protect you in the event of a collision.