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Can car insurance companies deny coverage?

Written by Dave Benheim. Posted in Ask An Insurance Question Last Updated: 02/05/2018

Yes, car insurance companies can absolutely deny coverage. It is within their rights to do so if they consider you to be too high a risk to insure.

Potential indications of risk include:

  • A car considered high performance
  • History of violating insurance (e.g. lapses in car insurance coverage)
  • Poor credit
  • Large number of accidents/tickets/other driving violations in a year
  • Having received a DUI or DWI
  • Serious accident (especially those that lead to injuries)
  • Providing incorrect information on your car insurance information

If you are denied coverage, what should you do?

  • You should keep looking for a different company.
  • Otherwise, you’ll want to seek out high-risk car insurance.
  • Finally, your last option would be to look into state insurance plans, which are available in all states that legally require drivers to have car insurance.

 

You can also improve your chances of receiving coverage by taking a driving class.

Should you get a Lawyer for your Car Accident?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 01/27/2018

Q: I was in a really bad accident where I was injured and the people in the other car were injured also. Should I get a lawyer for my car accident?

A: No. If you have car insurance you do not need to get a lawyer for your car accident. If you are the one that caused the car accident, the liability coverage in your car insurance policy provides you with an insurance company lawyer for your car accident. They will go to court for you if that is where it ends up.

However, if you and your insurance company are having issues on payments to you from them under different coverages that is when you may need to get a lawyer for your car accident. This doesn’t happen often, but it’s not unheard of.

More often it’s when the other person is at fault and their insurance company isn’t acting in good faith, that you will need a lawyer for your car accident. Claim’s adjusters are not the most generous people in the word and they are not paid to be so. If the other company is not making a fair payment for the damages to your vehicle, not giving you a fair amount for a totaled vehicle, or offers you a ridiculously low settlement for an injury accident, then it is definitely time for legal help.

However, always  try to work with the insurance company first before obtaining a lawyer for your car accident.

Being Accused of a Hit-and-run accident I Didn’t Cause

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 01/28/2018

Q: I received a notice from an insurance company that my van was involved in a hit-and-run. I do not recall hitting anyone and there doesn’t seem to be a new scratch on my van. It doesn’t mean it couldn’t have happened I just don’t recall it. It had to have been a very slight blemish because there’s no dents on my vehicle.

I will be contacting my insurance company to find out what I should do but I’m curious to know if I should first or also contact an attorney to fight this since I didn’t know that I had hit anyone and my insurance could be cancelled. Someone said that utilizing an attorney might get the hit-and-run removed but it might cost me a considerable amount. I live in California.

A: Actually, the first thing you need to do is to contact the insurance company that is accusing you of being involved in a hit-and -run accident you have no evidence on your vehicle for. Mistakes happen and sometimes we hit things with our vehicles we don’t even realize we hit, but if there is no damage to your vehicle you need to challenge this. Demand the details of the accident you are accused of being in and specifically ask why they think it was you. Sometimes all the insurance company has to go on is the make, model and color of vehicle that caused the accident. If they used this type of information to find you, they could easily be mistaken if there is a similar vehicle in your area. Even offer to take it to them or one of their local insurance agents to take pictures of where on your vehicle you supposedly hit the other person with.

If they refuse to work with you, demand the police report number for the police report that should have been filed for this accident.

If you are not able to get anywhere with the other insurance company talk to your insurance agent. They will be able to give you advice as to what to do, and it may be that you will need to file a claim with your company. Part of the liability coverage of your car insurance policy is that you will have your insurance company and their attorney’s defending you against this hit-and-run claim.

How Do I Insure My Car While Living in Mexico?

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 01/27/2018

Q: What if I de-insure my car just beacuse I am living in Mexico?  What if I just want to trip 1 day to arizona and I buy a insurance for 1 day, Am I still getting in trouble?  What if I want to revoke my de-insure to buy a insurance, lets say for 1 year, How do I revoke that? Thanks in advance. (Arizona Driver)

A: Wow, you have a lot of questions there! Let’s tackle these one at a time.

  1. What if I de-insure my car just beacuse I am living in Mexico? If you are living in Mexico, you don’t qualify for car insurance in the United States, anyways.
  2. What if I just want to trip 1 day to arizona and I buy a insurance for 1 day, Am I still getting in trouble? Unless you are renting a car, there are no insurance companies that will sell you car insurance for one day. I don’t know anything about Mexican car insurance, but in the United States your coverage extends a certain amount of miles into Mexico. Contact your insurance company and ask if they cover you driving in the United States.
  3. What if I want to revoke my de-insure to buy a insurance, lets say for 1 year, How do I revoke that? NO, Idea.  You will need to contact the state of Arizona in regards to their laws for this.

For the best information on how to insure your car in situations like these contact your insurance agent.

Foreign Driver in Need of Temporary Car Insurance

Written by Michele Wilmonen. Posted in Ask An Insurance Question Last Updated: 01/01/2018

Q: I am french, temporarily visitor in CA. A friend of mine is lending his car, but as I don’t have a CA dirver’s license, I need to get a temporary car insurance; and only for January to march.

How can I do ? So far, I have been rejected everywhere…

A: Your friend’s insurance will cover you without you having to be listed on the policy as you are only a temporary driver. Always remember, insurance follows the vehicle not the driver.

As far as you getting your own temporary car insurance for your friend’s vehicle with you as the driver, just give up now, as you are trying something that is almost impossible for a number of reasons.

  1. It’s your friends vehicle, you are not the owner and have no financial interest in the vehicle. No insurance company is going to write you a policy to cover your friend’s vehicle while you are driving it.
  2. You don’t reside in the United States and you have a foreign driver’s license. I have seen insurance policies being written for those that have had foreign licenses, but they are surcharged heavily and everyone of them had just moved to the United States. Also, none of them were only here temporarily.
  3. Car insurance companies don’t write temporary car insurance policies.
  4. If you were a resident with a United States driver’s license, you could get a non-owners policy as your temporary car insurance. However, this would only provide liability coverage and I have never seen a non-owners policy be issued as a temporary car insurance policy to a foreign visitor.

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