Featured Image Caption: Car Mechanics
Auto insurances are very commonly used by owners in today’s time. Not only this insurance plan covers the personal liabilities but also ensures that your car is covered under the claim. Whenever someone gets into a car accident, the car owner can file for an insurance claim. However, sometimes, while filing the claim, disputes arise due to one of several other reasons.
These disputes not only lead to legal cases but also end up yielding negative results for the policy assured. Many car owners have raised the question of why should I avoid the car insurance dispute resolution process because most of the time, their claims have been denied on unauthenticated grounds. Unfortunately, these people ended up practically with no answer.
For this reason, here, we have tried to discuss the circumstances under which your auto insurance claim can be denied and also, the answers for why should I avoid the car insurance dispute resolution process?
Why my auto insurance claim has been denied?
Whenever you will raise a claim against your auto insurance policy, high chances will be there that the claim will be denied. Now, before learning about the reasons for why should I avoid the car insurance dispute resolution process, we think it’s best if you learned about the denial reasons first.
- Accidents due to negligence: Sometimes, the accidents are caused due to your own negligence like you haven’t taken the car for servicing in one year and because of that, you got into a mishap. Under such cases, the insurer wouldn’t be liable to pay the claim amount on any ground.
- No immediate medical report: The next reason, why claims are usually denied, is the absence of a medical report within a stipulated time of the accident. If you do not seek medical attention and get a proper report on the injuries, and other vital stats, your claim can get denied.
- Evidence of the accident not available: If you fail to provide a single piece of evidence to back up the car accident, you wouldn’t be able to reach a settlement with the insurer. This is because when you will raise the claim, you will be asked for the document which is proof that your car has suffered huge injuries and you too have been harmed.
Why should I avoid the car insurance dispute resolution process?
Now, once you have raised the claim and it gets denied, you will obviously try to raise a dispute. And, the insurer, on the other hand, will try to resolve the dispute. Here is why, why should I avoid the car insurance dispute resolution process:
- No guaranteed resolution: even though many will say that a dispute resolution process is effective, it’s only true as long as you are agreeing to a loss-loss situation and letting the dispute being dragged for a long time. So, it’s best to avoid such a resolution process since you will end up with nothing.
- Limitations: even if the dispute gets resolved, you won’t have any say or flexibility in the results. So, whatever the resolution will be provided, you have to accept it, no matter how much loss you will have to endure.
- Excess expenditure: another reason why should I avoid the car insurance dispute resolution process is the high costs related to this process. You will have to pay a lot of money to settle the dispute, and if, by any chance, it gets to the court, you need to hire a lawyer, visit the court, attend disposition, and so on. In the end, you wouldn’t receive a single penny. But, you will certainly spend a lot.
To avoid such complications, make sure to read the insurance terms first, understand the needful, and then finally take the policy. This way you will be able to avoid any kind of claim denial and dispute resolution process also, which can certainly, be cumbersome at times.
By Kiera Peterson
who is residing in Australia.
Member since February, 2020
View all the articles of Kiera Peterson.