So someone rear ended me and I filed a claim with their insurance. Their insurance said they agreed it was their fault but said they would not cover the damage and didn’t give me an exact reason why. So I had to file through my insurance and when filling out the claim with my insurance I had 2-3 people ask why they wouldn’t cover it and were surprised when I said they wouldn’t tell me. Is this normal? The following is a letter I got from them explaining the no cover.
“This letter will serve as an update pertaining to the loss that occurred on the above date of loss.
After a thorough review, we are unable to afford coverage for the above captioned loss.
Accordingly, we must respectfully decline this claim.
Our decision is based on the information and documentation that we received in connection with our investigation of this claim. If there is any additional information or documentation that might lead us to reconsider our decision, please contact us immediately.
We are relying on the portions of our policy that we have reasonably been able to conclude are applicable to the facts in this loss. We do not intend to waive, but rather expressly reserve our right to assert any other policy terms, conditions, exclusions, exceptions, or legal defenses to coverage that we might later learn may be applicable to this loss.
The Statute of Limitations on your property damage claim will expire six years after the date of loss for this claim. It is your direct responsibility to either settle this claim before that date or file a lawsuit in a court of proper jurisdiction on or before the last day of this time period at which time the statute expires.
We are committed to providing our customers with legendary service. Please do not hesitate to contact me with any questions or concerns pertaining to this claim.”
Can anyone explain this to me?
byu/Business_Principle29 inInsurance
Posted by Business_Principle29
5 Comments
No this is not normal. They have to give you a reason. Was the policy canceled? Is the insured refusing to cooperate? Why? I would report them to the Department of Insurance and continue to pursue through your insurer. Your insurer will try and get their money and your deductible back. What company is this if you don’t mind me asking?
This is pretty standard denial for no coverage. They don’t have to explain in detail the reason as its between the company and their insured.
It could be any number of reasons. Excluded driver. Uber. Lyft. Business use. Deliveries etc…. some insurance companies are just a hard, hard no on stuff like this. Others will offer coverage but you have to ask. Some people legitimately don’t know they need special coverage. Some people try to play the system.
Their insured (the driver who hit you) voided their coverage in some way that their policy will not pay for your damage. They don’t have to tell you the exact reason. Maybe they weren’t listed as a driver, or their address was incorrect, or they were driving Uber, etc. You can either use your own coverage or try to sue them. The first option is much easier.
Probably a gap in coverage