Can auto insurance refuse coverage?

Can auto insurance refuse coverage?

On Behalf of | May 5, 2022 | Uncategorized

It may surprise readers, but auto insurance companies often have specific language in their policies that allow them to deny coverage. Of course, in New York, we have much more protection from unscrupulous insurance companies than other states, but that does not stop some insurance companies from denying claims nonetheless. If that happens, one may need to contact an attorney to force the insurance company to provide coverage.

Misuses and modifications

Often, auto insurance companies underwrite their policies based on normal use and normal equipment. As tiny living has exploded, so to has modifying vehicles, like cars, and vans into dwellings. This requires modifying the vehicle and using it in a way that was likely not anticipated by the insurance company. If a car accident results because of either, they may use this alternative use or modifications as a reason to deny coverage.

Not just van life, also racing and business life

Nontraditional uses of Olean, New York, vehicles that may be the basis of noncoverage extend to using the vehicle to race or do stunts. It also extends to operating the vehicle for business purposes without commercial auto insurance. Even driving for one’s employer could be the basis of insurance denial. Be careful, and when need to, call the insurance company for clarification.

Disaster preparedness

During the last few years, disaster preparedness has become a hot topic in New York. Indeed, many companies now provide “bug out” bags and other protective equipment for their employees, just in case a disaster happens. Unfortunately, insurance companies often put language into their policies to do the opposite. This means that hurricanes, floods and other natural disasters are specifically not covered, as are man-made disasters, like war. Again, call the insurance company for clarification.

Gaps in coverage

Another issue that can blindside car accident victims is gaps in insurance coverage. For example, if one owes more than the car is worth, insurance will often pay out less than the car is financed for, which means one could be in a situation where they still have a car payment, but no car. This can be especially problematic for those who lease their vehicles. However, it can also happen if one has minimum coverage, and they are in an auto accident with a lot of people, with expensive vehicles or had extensive injuries without insurance. The car insurance company, unlike health insurance companies, has limits on how much they will cover. This is why many people purchase gap insurance and an umbrella policy. However, even if a person made these smart purchases, New Yorkers may, nonetheless, still need an attorney.