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Common reasons insurance companies do not pay auto claims

People who are in car accidents in South Carolina and submit a claim to their insurance company expect payment for damages. However, an insurance company may not pay for the claim, and there are numerous reasons why this may be. Some are legitimate, while others are not, and the insurance holder should take further steps to ensure the company pays for what is right.

Some legitimate reasons why a company may not pay for an auto insurance claim are when someone has not kept current with payments, the claim fits under a listed exclusion or the policy holder has not met the deductible yet. On the other hand, FindLaw discusses some bad faith tactics insurance companies may take to avoid paying for a valid claim. Some relate to the investigation into the claim, as some companies may delay an investigation or not conduct a thorough one. A company may also misrepresent the law or use deceptive practices, such as not providing the necessary paperwork or failing to divulge information about an existing coverage. It is also common for an insurance company to offer a lower settlement than what a claim is really worth.

Some of the tactics companies take are stalling techniques in the hopes the claimant will give up pursuing the claim. However, if it is a valid claim and the policy is up to date, it is often worth the time to take further action. Investopedia reports that 31% of insurance complaints have to do with auto insurance, and it gives some tips about what to do when a company denies a claim. Simply understanding what the policy covers and the rights as an insurance consumer can go far.

After an accident, the more details one can get, the better. Witnesses, pictures and police reports can all present detailed records that show what happened in the accident and who was at fault. Oftentimes working things out directly with the insurance agent works, but if not, it may help to involve the state insurance regulator. As a last resort, taking the company to court may be the only way to rectify the situation.



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