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Can my car insurance company deny my claim?

Car accidents happen. Indeed, no matter how safe your driving habits become, eventually, there’s a good chance that another driver’s negligence will catch up with you. The one thing that good drivers rely on is their car insurance. But, can your car insurance company deny your claim?

Voiding your policy

Of course, there are many reasons that a car insurance company can use to deny your claim. One of the most common is that you voided your own policy. Insurers sometimes allege that a policyholder used the vehicle for an unapproved use, like commercial, stunt or illegal purposes. This is not always allowed, so you may need to consult a New York attorney.

Uninsured or underinsured coverage

If involved in a hit-and-run car accident and you do not have uninsured coverage, you may find that your insurance company denies your claim. You may also find that your claim settlement is much less than needed if you do not have underinsurance coverage as well. This happens if the negligent driver’s insurance policy is not enough to cover the damages.

Bad faith insurance

Another reason you could be denied coverage is through bad faith. This is where your legitimate claim is denied, or your policy unreasonably delays your finding or payout. Bad faith also occurs if the car insurance company misrepresents coverage, fail to disclose or lie about policy limitations/exclusions and when the insurance company makes unreasonable demands.

What can be done?

First, let them know that you believe they are working in bad faith. Next, you can report them to your state’s insurance regulatory agency. However, in most New York, New York, cases, it takes contacting an attorney to get bad faith insurance companies to do what is right.

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