Car Insurance Problems – 4 Reasons Why Your Insurer Will Refuse Your Claim

Car insurance is no doubt a legal requirement, but it is something that vehicle owners will find useful if ever they are involved in car accidents. Medical bills can work out to be very steep and so can the cost of repairing a car that has been totally wrecked. While you do need to get the right insurance policy and keep up the payments, you do have to watch out for certain situations that might cause your insurer to refuse your claim. All the money you have paid as premiums will be wasted and you’ll have to pay all the medical and repair bills in full.

The following reasons generally lead to refusals:

1. Your specific policy does not cover the loss you have incurred. You need to go through the policy carefully before you make a claim. Also, you should take a policy only after considering all the repercussions. Most policies also have exclusion clauses; for instance the insurer will not pay out in case you do not have a license or have done modifications that reduce the safety of your car. Further, you will not get a payout in case you have been found to be driving under the influence of alcohol or drugs.

2. You have not given the insurer sufficient information at the time of taking the policy. Auto insurance companies require detailed information about you that will help establish the risk associated with you. This includes whether you have had any auto accidents as a driver and whether your car has already been damaged. Therefore, you need to read the form carefully and fill it correctly when taking out a policy.

3. You have purposefully given incorrect information to the insurance company. Insurers are sure to do a detailed investigation in case they have a doubt that you have committed fraud.

4. If your policy is not active then you will not get a payout. You’ll need to keep up the payments in order to ensure that the policy exists at the time of the accident.
As you can see, it is very important for you to keep your paperwork in good order or else you will have problems with your car insurance payouts. You should also make sure that your claim is done without too much of a delay after a car accident, and preferably with advice from a professional. You can explore legal options in case you feel that you have been cheated.

Cheap Car Insurance – What is the Right Type of Cover For Your Car?

There are so many people aspiring to have their own car someday. There is really nothing wrong with that. What these people should realize is that buying a car is easier than paying for its insurance and maintenance costs. The worldwide economic recession has made it impossible for many people to keep up with their car insurance payments.

A lot of people are clueless that there options that they can take advantage of that will even help them save more money.

The common mistake made by a lot of people when buying their cars is that they easily choose the first insurance option that is being offered to them. They do not realize that car dealerships get commissions from insurance policies. Car buyers should by now should remember that by heart.

Your local car insurance representative may not always give you the best deal since they earn commissions from the insurance that they offer. In this case it is best to canvass for more car insurance policies. This will help you compare prices and other benefits that each provider offers. It is a good practice to check websites that offer comparative charts of various car insurance companies. This will definitely give you the best price possible.

For people searching for cost effective options they may consider the following.

1. The monthly car insurance is becoming a popular option nowadays. This is very useful to people who frequently visit different cities and using different cars to get there. The insurance is valid for a single day for up to 28 days. This is a cost effective option for students coming home for vacations and for individuals who own multiple vehicles where they rarely use the second car.

2. Pay-as-you-go insurance is one of the most innovative options being offered in the market. One is simply paying for the duration and distance covered in his or her vehicle. In this case if one does not use his or her car then payments are not applicable. But these polices can work out more expensive.

3. The most common insurance is the annual comprehensive car insurance which requires a yearly premium payment. The premium can be costly but the coverage is worth every single cent you have paid for. Keep in mind that you are still accountable in getting accurate information of the policies limitations.

The easiest way to find out what is the cheapest insurance policy and the best cover for you is to use the internet.