Auto Insurance claim denied

by Brett
(Windsor)

My husband and I just lent out our car to a friend of ours. Our friend had an accident in the car and it is totalled. And we found out that he was driving without a valid license (it was suspended for some reason). As a result of this our claim might be denied. The car is brand new.


And we have heard that our rates might go up even though the accident wasn't our fault.

Is this true? What can we do?

Unlicensed Driver Answer


Unfortunately an unlicensed driver is not covered. And yes, the claim will count against you. The accidents of anyone driving your car affects your insurance. So unfortunately your rates are likely to go up


www.canada-insurance-source.com


Note: Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind. This insurance information is general in nature and the policy wordings always take precedence. Make sure you review the "please read" page.


Comments for Auto Insurance claim denied

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Apr 27, 2011
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Claim denied
by: Anonymous

I have insurance with a company in alberta and drove my car to newfoundland for a vacation while in newfoundland I had a car accendint not my fault and the car was totalled. The company denied my claim cause the car was out of provience and I have no proof of when I left alberta...please help me with some advice on what my next step is...I have contacted a lawyer but its been over two monthes now and I'm not getting any answers I have been with this company for three years. I am a single mother with a 15 month old son and I can't afford another car if this one is not covered with the insurence...again any and all advice would be greatfully appricated.

Apr 12, 2011
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broker
by: Anonymous

press charges against the thief. the only way to make a theift claim is to report it to the policy. the insurance company wants to see that your not lieing about stealing your own car.

May 13, 2010
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AUTO THEFT CLAIM DENIAL
by: Anonymous

My car was kept in my garage, an old tenant went and picked it (He probably know the code to open the garage door), he had an accident and the car was lost completely. I have fire and theft insurance on the car since I was not in town and was not driving the car. I filed an auto theft claim with my insurance company but it was denied. What can I do next?

Answer: Next Steps If criminal charges were pressed against the person who stole your car then you should be able to make a claim. Otherwise, it will be difficult. You can go to your insurance company's ombudsman and complain as a first step. If that fails, then your only recourse is legal action. Good luck

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Note: Always speak with a licensed insurance professional about your specific situation. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility.

Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind.  Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.

Always speak with a licensed insurance representative about your specific situation.

This site is general in nature and there may be errors or ommissions

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