5 Reasons Why Your GEICO Car Insurance Claim is Denied
No one wants to be a victim of a car accident. However, in the unfortunate event you suffer from one, getting a car insurance claim will help your expenses stay afloat. Unfortunately, there are some cases when your insurance claim gets denied – and there are reasons which explain why.
If you get a GEICO insurance, they might deny your claim due to the following:
- You failed to pay your premium
A lot of individuals often ask “why GEICO denied my claim?”. Often, the answer is as obvious as it seems – they failed to pay their premium. If this is your case, then you won’t be able to receive any compensation at all.
As such, if you really want to make sure your GEICO approves your claim, you need to pay your premiums on time. Failure to do so will only lead to an increase in your premiums, a poor credit score, extra fees, or even the cancellation of your contract.
If you get yourself in a road accident but you didn’t pay your premiums, your insurance company is legally allowed to deny your claim.
- You have a suspended license
Though fairly obvious, still a lot of people file a claim even with a suspended license. There are several possible reasons why a license could get suspended. These include overspeeding, reckless driving, driving under influence, and more. Thus, if you got involved in an accident with a suspended license, don’t even bother filing a claim as GEICO will certainly deny it. In worst case scenarios, they might even cancel your insurance policy.
- You use your car for business
The Insurance Information Institute stated that a car used for business purposes should have a business auto insurance policy. If you told GEICO that you’ll be using your car for personal use but ended using it for business instead, they will most likely deny your claim.
The explanation is that cars used for business purposes are used more frequently. Therefore, they’re more prone to road accidents than cars for personal use.
- Failure to disclose accurate information
Another reason for a denied GEICO claim is failure to provide them with accurate information. One example is an incorrect address. While it might be due to a recent relocation, your insurance company will assume that you could have given them an alternative address so you can avail of discounts on your premiums.
Additional information which you should disclose include any modifications on your car, any history of an accident claim, and how many people in your household who are of legal driving age. As much as possible, provide your insurer with the correct information so you won’t have to deal with a claim denial.
- The possibility to avoid the accident
In some cases, GEICO might deny your claim if they believe that you could have avoided the accident. Some good examples are driving under influence, reckless behavior, or allowing someone without a license to drive your car.
GEICO and other insurance companies have all the rights to deny your claim due to a number of reasons including the ones above. As such, it’s really advisable to follow what your insurer specified so you don’t have to suffer from a denied claim in the event you get involved in an accident.