The Truth about Insurance Companies and Claims

claimsOkay so here’s the deal. Insurance companies don’t like to give away money. They investigate every claim that is set up to eliminate insurance fraud and to make sure what insured’s say happened, do in fact align with the damage of the vehicle or home. We are fortunate to have great carriers that are reputable and trustworthy,  but they still won’t pay out a claim if they feel you are not on the up & up. So here’s the deal, don’t give them any excuse to not to.

One of the largest problems occurring  is misrepresentation of where insured’s are garaging their vehicles. Towns in Massachusettes are categorized by the number of accidents and violations reported by the registered drivers of that town. Generally speaking, areas that are closer to the city and highly populated are going to be more expensive to register your car in because the majority of accidents happen close to home.  Insured’s who falsify their garaging to avoid a higher premium are really putting themselves at risk for the insurance company to deny a claim. For example, if an accident happens in Charlestown to an overnight parked vehicle, but the  insured actually registers his or her vehicle in Ashland, the insurance company will do it’s research. They might ask the insured for gas receipts and could potentially even interview neighbors in Ashland & Charlestown to see  if they are actually living where they claim to be.This is even more likely when there are multiple accidents in that area.

Another issue  is the premium avoidance from misrepresentation of inexperienced drivers as occasional when they are in fact principle operators. In households where there are three vehicles and three or more drivers it is reasonable to assume that a different vehicle is provided for each of those operators, even if each of those drivers does operate the other vehicles. If an accident occurs, the operator of the vehicle will be investigated to insure that they are listed and charged properly on the policy. If the information on the policy is incorrect the insurance company can deny the claim. This is also the case for roommates using eachother’s vehicles often. They need to be listed on the policy as an occasional operator. If that roommate gets into an accident in your car, insurance companies will look closely at the claim and may deny your coverage (which affects you and your vehicle) because he or she was never listed on the policy to begin with. In many cases the extra cost for listing the operator properly is less than the cost of damage that could be out of your pocket.

When someone gives  false, deceptive, misleading or incomplete information on any application for insurance coverage, insurance companies can legally refuse to pay claims under any or all of the Optional insurance coverages of the policy. The important thing to keep in mind is that it is to your benefit to not give insurance companies any reason at all to deny a claim. In the event that you have moved or anything has changed since you filled out your initial application, promptly notify us  so we can update your information so everyone wins and you stay covered!

August 5th, 2013 by Quincy Insurance Agency LLC