Can my insurance company deny my car claim based on my credit report?
Slow down. They can only deny your claim in extreme circumstances, and low credit isn't one of them. Insurers can only deny claims when they have legal justification for doing so. In a theft claim, legal justification would be either if you lied to them (also called misrepresentation or non-disclosure) about rating information or if you arranged for the car to be stolen so you could claim it on your policy (also called fraud). Aside from that, they're going to cover your loss. Most insurers now ask for a credit check before they'll even write the policy, so asking for it after your vehicle was stolen is nothing. Here is exactly what they're looking for... If your credit rating has recently gone from bad to really terrible, it will tell them if they need to investigate further. By really terrible, by the way, I mean stuff like threats of repossession, foreclosure and that sort of stuff. They're looking to see if you've landed in a position where your only hope of financial survival is to have an insurance claim. Why would they suspect you of that? Because they suspect everyone, because insurance fraud is really popular. About $30 billion each year is paid by insurance companies to fraudulent claims, and that's just under home & auto insurance. That includes 'slightly padded' claims all the way to bogus lawsuits for millions at a time, but it's a staggering number. And the average insurance fraudster looks like every average person. If you're not up to any funny business with your claim, you've got nothing to worry about.
Can my insurance company deny my claim...?
Lots of info, sorry! My car was parked on the street and hit during the night. I drove the car to the repair place the following morning and the airbag deployed on the way there. (Stupid, I know, I wasn't thinking). My insurance company, GEICO is insisting that the damage is not consistent with a hit and run accident. They have taken recorded statements from me and my boyfriend. They have contracted an "independent accident reconstructionist" to read the airbag deployment. The reconstructionist originally told me that he was unable to retrieve the data, but the insurance company is now telling me that he was able to get a partial reading. And that it shows that the airbag deployed as a result of impact. The airbag did not actually fully deploy. There is no powder or injury to me to justify a complete deployment. Does anybody know if they have the right to deny my claim based on suspicion? They keep trying to make me say that my boyfriend was driving the car, which he wasn't. We were in the house together all night. Also: car was in previous fire; severe damage to front of car, all repaired. accident happened in CA, full coverage policy written in GA I know its a lot of info. Thanks for reading and I appreciate any helpful answers. Thanks!
What happens if you lie to a car insurance company about your traffic violations?
Let's just say they don't do the double check, and issue a policy based on your false record. Then you have an accident before the double check is done, and then the real record comes in. They can deny a claim based on the fact they may not have issued a policy with the proper data, or, at the very least, would have been charging a higher premium for a higher risk. If the record comes in after the policy is issued, and you haven't had an accident, you will get a letter demanding an explanation for the missing declaration (remember, you have to sign the application), and then they will decide whether to cancel you for cause, or bill you a higher premium. Your husband wants to play a game that can have very serious consequences. If you have a policy cancelled for cause, you have a problem getting any kind of policy at a decent price.
How do car insurance companies check your background?
When you ask for an insurance quote and when you buy insurance, you give the agent or company your driver license # and SS# (usually). If you do not give them these numbers, they will not insure you. When you sign a quote request or an application, you are formally giving your permission. Then, they access the state’s driving history website or a vendor’s website that provides your history. Generally, that source also lists the vehicles currently or recently connected to your home address. It will also list other people connected to you, your vehicle or your home address. Previous claim history connected to your vehicle, your driver license #, your address, and previous addresses shows up on a CLUE Report. An individual’s driving history, if there have been tickets or accidents or claims may show up in public records, too.The insurance industry is very strictly regulated, more than most people realize. Insurance is regulated by each state first and the federal government in some areas. However, there is generally 90–95% uniformity between policies and rules with different insurance companies and different states’ rules. And, insurance companies are not required to insure any particular person for car insurance, home insurance, etc. So, if they can not access your information they do not have to offer you a quote or a policy.
Are car insurance claims filed even if there is no damage done to the car?
Ideally, you should report all accidents to your insurance company, even ones where you are NOT at-fault. If there are injuries (to you, your passengers or the other party), you definitely need to file a claim (even if there is little or no damage to your vehicle).Depending on the requirements of your policy, you must report an accident within a specific time period (usually anywhere from 7–30 days) in order for certain coverage to be applicable. By not reporting the accident, you could forfeit your coverage against an uninsured or under-insured driver (if you have UM/UIM). More commonly, failure to report an accident can nullify your insurer’s ‘duty to defend’ if you are sued by the other driver!That advice is based on my professional experience as an independent agent since 2009. Personally, I think there are situations where you must make a judgement call. If it’s a parking lot accident with minimal to no damage and no police report, it’s probably not worth reporting. But if there’s any chance of injuries or a future lawsuit, it’s simply not worth the risk of not reporting it!Unfortunately, it has been my experience that the vast majority of insurers report every claim (including claims where nothing is paid). Some even report coverage inquiries (for example, if you call to inquire about glass coverage because your windshield is broken, they’ll record a claim even if you don’t file a ‘claim’). Roadside assistance claims are also reported by many companies. I advise all of my customers to buy a membership to AAA (if they don’t have coverage from the vehicle manufacturer).Almost all (99+%) of insurance claims are reported to LexisNexis and compiled on a report called a CLUE (Comprehensive Loss Underwriting Exchange) Report. Your auto claims history is saved for five years and virtually all insurers use that information during their underwriting process. So you don’t want a $0 claim to be reported that could cause a rate increase or non-renewal in the future!
Do all auto insurance companies check with your DMV for your driving record?
Insurance companies are entitled to see three years back on your driving record, by the dates you give, that means this accident will drop off your record in September 07. At that point, your rates will drop. Bear in mind, males under the age of 25, pay higher rates than the norm, so driving responsibly is in your best interest, money wise. If the accident was alcohol related, the accident can stay on record for ten yrs. All alcohol offenses stay that long. Employers are entitiled to see five years back on your record, so if you have a job where you drive a company vehicle, or you are a driver, like UPS or FEDEX, you will want to keep your record as clean as possible.
Will this citation be reported to my auto insurance company?
I have seen several answers here and it seems everyone has it partially right. Insurance companies typically pull MVRs when rating a new client, but not at every renewal afterward. How often they do pull driving records is determined on activity on the policy (new cars, new drivers, relocation, etc) and how risky they consider the policy (underage drivers, high performance vehicles, etc.) but in most situations it is 3-5 years. You don't say how old you are, but I am guessing you are under 25 and if that is the case with a new, expensive, high performance car and if you are listed as a driver on your dad's policy I would venture 50/50 odds that they are going to pull driving records and discover your ticket. If you are not listed as a driver on your dad's policy, then whatever policy you're listed under may be surcharged, but your dad won't find out. The other good news is that they will not identify which car you were driving when you got the ticket. Hope this answers your question and good luck to you!