Having car insurance is an excellent choice for those looking to have protection for their assets and replace the good in the event of an accident. However, it is necessary for the insured to know that, regardless of the insurer hired, there are some rules for the insurance indemnity to be paid. Can the insurer deny the insurance payment?
What is a Good Faith Contract?
When taking out auto insurance, the insurance company asks you to answer several questions, called a ¨risk questionnaire¨, the information must be true, because the insurance company believes that the information answered by the insured is true, so the contract insurance, is called a ¨good faith contract¨.
However, at the time of the claim, the insurer can check this information and if it finds any information that contradicts what was reported by the insured, the insurer can deny payment of the auto insurance claim.
Here, we separate some of the most common situations in which the insurer may deny the insured person the auto insurance indemnity. Check out:
1. Lying about your information
Informing wrong data, whether in relation to the use of the vehicle, place of residence or others, may result in the denial of payment of compensation.
Insurers have an investigation department, responsible for analyzing whether all the information provided really matches reality.
If the insurer finds discrepancies, it may deny the insurance indemnity. So it’s better to tell the truth and pay a little more for insurance than to go without it.
2. Incorrect profile, can the insurance company deny the insurance payment?
Any wrong information about the profile, such as the age of the driver, is already a problem. Often, the child uses the vehicle two or more times a week, but the father or mother prefers to inform that the main driver is the oldest. The vast majority of claims are denied due to profile divergence.
Even if it is unintentional, the denial of compensation will happen. So, it is important that you review the proposal information several times to avoid this problem.
3. Profile change during validity
Any changes must be reported to the insurer. If you move, get married or separate, for example, it is important that you notify your broker so that an endorsement of the change is attached to your policy.
As soon as the fact occurs, the insurer must be notified so that the necessary corrections can be made.
4. Driving while intoxicated
It is provided by law and the insurance policy that drunk driving is not permitted. If you have an accident and it is proven that you were intoxicated, or that you were performing any act against the law, the denial of compensation is certain.
5. Driving with a suspended or expired license
If you are driving with a suspended or expired license, you may have the indemnity for an auto accident denied by the insurance company, as there is, in this case, a violation of traffic laws.
6. Lend the car to non-qualified people
If you decide to teach a child, or any person not qualified to drive, and it causes an accident, there is no point in calling the insurance company. She is supported by law to deny payment of compensation.
7. Use the vehicle as an APP Driver and do not inform the insurance company
If the insured is registered on any Uber, 99, or other application platform, the insurer may deny the auto insurance indemnity if the vehicle is being used for this purpose and not correctly informed in the ¨Risk Questionnaire”.
8. Payment delay
Not being up to date with monthly payments leads to suspension of coverage and even cancellation of insurance.
In these cases, if you realize that it will not be possible to pay until the due date, the best thing to do is to contact the insurance company to negotiate the values and not run the risk of losing your rights in the event of a claim.
9. Intentional accident
Even though it seems unlikely, there are some policyholders who cause the accident to receive compensation.
As mentioned earlier, insurers have specialized professionals to analyze different situations, including the reason for the claim. If the situation is proven to be intentional, payment of compensation will be denied.
10. Risk aggravation
Actions considered as risk aggravation need to be avoided. If the car was parked with the window open, the key was left in the ignition while the driver was away, or any other situation that exposes the car to unnecessary risk is found, insurance denial will occur.
11. Placing valuable accessories on the vehicle
Installing flashy accessories in the car, such as stereos and/or DVDs, among others, are a kind of risk aggravation, as they attract the attention of thieves. Therefore, whenever an accessory is added after the inspection, it is necessary to inform the insurer.
12. Changes to the vehicle structure
Any structural change in the vehicle that is carried out after the inspection or even the contracting of auto insurance needs to be communicated to the insurer.
Even because there are some situations, such as the lowering of the car and changes in the engine, for example, that insurers do not offer coverage, on the contrary, they refuse to insure this type of vehicle.
13. Take advantage of the insurer
Any action that is considered to be an advantage over the insurer results in the denial of insurance. In addition to the above, several other cases may occur.
14. Claim involving vehicles of 1st degree relatives or spouses
First-degree relatives, such as parents, siblings and children, as well as spouses, are not characterized as third parties. So if you hit your wife’s or brother’s car, the insurance won’t cover the claim.
15. Accidents caused by third parties
You went to a restaurant that offered valet service, and it crashed your car. If the establishment does not offer insurance, there is no point in contacting yours, as they will not respond to the claim, the insurance company may deny payment of the insurance.
In this case, the best thing to do is to look for the person in charge of the establishment and collect the damages from him.
16. Widespread riots
If your car is exposed to risky situations such as fan fights or public demonstrations, and is damaged, you will not be entitled to receive compensation from the insurance company.
This clause is provided for in the policy, so always pay close attention to these details.
17. Driving the wrong way
As unlikely as this situation may seem, believe me, it happens very often. People constantly enter streets, not sure of their “hand”, and most of the time collisions happen.
If this happens to you, resolve the situation immediately, as triggering the insurance will not solve anything because the company may deny the insurance indemnity. Driving the wrong way is a traffic violation, so it is not covered by insurance.
If provided for in the policy, the driver who exceeds the permitted speed when traveling on highways ends up losing the right to the coverage contracted in insurance.
19. unregulated gas kit
When contracting auto insurance, you must inform that the vehicle has a gas kit, whether or not you want insurance coverage for it. What can happen is that many policyholders convert the vehicle to CNG during the term of the insurance and do not inform the insurance broker or insurer. It is also necessary to regularize the situation of the gas kit annually with INMETRO and, of course, also be regularized in the vehicle document CRV (Vehicle Registration Certificate) with the DETRAN.
20. Flood or waterlogging
Comprehensive coverage will not be valid unless the terms of the insurance contract are breached. Therefore, the insurer can deny the payment of the insurance if it is close to a place of risk of flooding or flooding, do not force the passage, The insurer will understand that there was collaboration with the risk. That is, if you try to overtake the vehicle in a flood or flood, the insurance company will not indemnify.