Pathway Insurance

Did you know if you violate the terms and conditions of your policy, your insurance company may refuse to pay your claim?  More importantly, did your agent explain these reasons to you so that you don’t end up paying a claim out of pocket without the benefit of insurance? 

If your insurance agent did not invest any time in explaining these coverage scenarios to you, other than “read your policy” why is he/she your insurance agent?

Insurance is no mere commodity like a loaf of bread.  Insurance is a complex contract between you and your insurance company and if you violate a condition of your contract the insurance company may very well refuse to pay your claim. 

The most obvious reason why insurance companies can refuse to pay claims is when you are committing insurance fraud by turning in a claim that is based on deception.

Do you know the 230 additional reasons  why your insurance company can legally refuse to pay your claim?

Notice four additional reasons why your insurance company may refuse to pay a claim:

A son or daughter no longer is a member of your household but remains on your car insurance policy.

You use your vehicle to deliver pizzas.

You conceal information from your insurance company.

You give permission for someone to drive your vehicle whom has a suspended driver’s license.

There are 225 other reasons why your insurance company might refuse to pay your claim and it’s not because they are trying to cheat you.  If your claim was turned down it’s because you violated the terms and conditions of your policy.

As I have emphasized in many articles on this web site.  There are many restrictions of coverage on your Cincinnati car and home insurance policies that some unsuspecting insurance buyers may not be aware of until a claim happens and the insurance company doesn’t pay.

If you do not take time to read and understand your insurance policy or if your agent does not take the time to explain the 231 reasons why your insurance company can refuse to pay claims, perhaps you have the wrong insurance agent taking care of your insurance?

Doesn’t it make more sense to purchase your insurance from an agency that takes time to explain the coverage gaps and pitfalls of your insurance policy?

While it is true that no agency or individual agent is perfect, we firmly believe that educating our Cincinnati clients is more important than a cheap insurance price with no advice.™

We are available at any time to discuss individual coverage needs or restrictions of coverage with existing clients of Pathway Insurance or if you are not an existing client of Pathway Insurance why not take the time to consider allowing our local Cincinnati-based insurance agency to care for your insurance needs? 

Click Here to start that process. Or feel free to contact me directly by calling 513-662-7000 or sending a quick email to jack@pathwayinsurance.net

If you Violate a Car Insurance Exclusion…

You just might be Floating up the Creek without a Paddle.

(That means the insurance company probably isn’t going to pay the claim)

Keep in mind that car insurance EXCLUSIONS can vary by insurance company and the state in which you reside plus one other factor: Court decisions.  Court’s in different states can come to different conclusions in their interpretation of EXCLUSIONS.  It’s always a good idea to make sure that you read your policy for the specific exclusions applicable to your individual policy.

Let’s review a few common EXCLUSIONS that sometimes are violated by policyholders intentionally or because they simply did not know.  (Not all Exclusions are listed)

EXCLUSIONS – READ THE FOLLOWING EXCLUSIONS CAREFULLY. IF AN EXCLUSION APPLIES, COVERAGE WILL NOT BE AFFORDED UNDER THIS PART.

To any vehicle while being used to carry persons or property for compensation or a fee, including, but not limited to, pickup or delivery of magazines, newspapers, food, or any other products. This exclusion does not apply to shared expense car pools.

This particular exclusion was the reason why the man named “Joe” in our previous post had his claim denied.  Joe was using his vehicle to deliver pizzas, he caused an accident and his insurance company refused to pay for the damage to his vehicle or the other party’s vehicle.

This exclusion could mean that coverage may not be available in the event you use your vehicle for any business activity where you are compensated for that activity.  So if you deliver newspapers, pizza, food of any type, medical supplies, package delivery you may have no coverage under your personal auto policy for accidents or injuries under this exclusion. 

How about if you transport people in your personal automobile as part of your job duties?  Let’s assume you are a social worker, child care worker, or work at a group home transporting your clients to various destinations in your personal automobile? Again the same situation may apply.

Another car insurance EXCLUSION: 

Bodily injury or property damage resulting from, or sustained during practice or preparation for:  Any pre-arranged or organized racing, stunting, speed, or demolition contest or activity; or any driving activity conducted on a permanent or temporary racetrack or racecourse;

What no coverage for drag racing at the local track?  Nope.

Another car insurance EXCLUSION:

Bodily injury or property damage arising out of the use of a covered auto while leased or rented to others or given in exchange for any compensation.

What you mean I can’t open up my own buy here pay here lot and insure the vehicles I sell on my personal auto policy?  Nope.

Another car insurance EXCLUSION:

Bodily injury or property damage caused by, or reasonably expected to result from a criminal act or omission of that insured person. This exclusion applies regardless of whether that insured person is actually charged with, or convicted of, a crime.

Road rage anyone?

As I mentioned previously exclusions may vary from company to company, and the interpretation of those exclusions by court action have been affirmed in one state, but rejected in another. We have briefly considered only a few typical exclusions contained within the personal auto policy.  Take time to read all of the exclusions in your policy.