It is the call you never want to receive: “We have denied your car insurance claim.”
After a car accident, you expect the insurance company to take responsibility, even if not 100%. We seldom expect to hear simply “No.”
We definitely do not expect the no to be based on something we did, especially if it was a hit-and-run car accident.
If you love your car and like to show it off, you may have brought it to a New York car show or similar car-related event. If it is a sports car, you may have taken it to a private track to race other cars. You may have even used it for other stunt or driving performance.
Unfortunately, depending on your car insurance policy, all of these actions could void your insurance policy or give your insurance company a reason to not honor a claim that occurred at one of these events.
Acts of God
Another surprising way that your insurance company could deny your insurance claim is based on a so-called act of God.
Most home and car insurance policies specifically exclude some acts of God, which can include hurricanes, floods, tornadoes and other natural disasters.
This type of denial often comes as a double whammy after a person has already everything during one of these events. Meanwhile, they may still have to pay off their car loan.
Most New Yorkers know that business vehicles need business vehicle insurance or commercial use insurance. However, car insurance companies have much more expansive views on what qualifies as business use.
For example, if you are driving for a gig service, but not actively on a run, will your insurance company deny coverage if you get into a car accident?
Why do insurance companies do this?
Insurance companies make money by taking in more each year than they pay out. Publicly traded insurance companies have a duty to make sure that spread is larger every year. They have a duty to their shareholders to constantly grow.
What you will notice here though is that there is no mention of you, their customer. This is why dealing with insurance companies, even if they are your insurance company, can often feel adversarial. This is why people may need to hire an attorney to fight on their side.