Refusal from your insurer to reimburse the full repair amount should not come as a shock. Insurance companies strictly adhere to insurance policies. It is a fallacy among people that insurance companies are responsible for meeting the whole repair cost as they have been paid a premium. The intent of insurance is not to indemnify you from bearing all kinds of repair costs. It is rather aimed at bailing you out, reducing the burden on your budget.

In other words, even if the repair cost is funded by your insurance company, they did so by using the money that you had paid to them in advance. Many people find it unfair that insurers do not cover the full cost of repair, but the fact is no policy has ever been made that covers all kinds of expenses.

You should read all terms and conditions stated in the policy so you know what kinds of repairs are covered and what are not. However, sometimes, the insurance companies take stock of the entire situation to evaluate how much money is to be reimbursed. This is when there could be disagreement between you and them.

Reasons why your insurer refused your claim

Here are the reasons why your insurer refused your claim:

• The policy was not in effect when you were claiming the loss or damage.
• The claim proved to be invalid because you did not disclose the truth at the time of applying for the insurance. Hiding the truth could potentially reduce your chances of obtaining a claim.
• Your claim has been turned down because you deliberately misled your insurance company.
• The damage or loss for which you are claiming is not covered by your policy.
• You have missed some instalments of your premium. You must be consistent with premium payments to qualify for a claim.
• You did not keep your insurer in the loop about a change in your circumstances.
• You have failed to meet all terms and conditions of the insurance policy.
• You have exaggerated the claim and are seeking more than you should.

Your insurance company will not pay out the full amount

It depends on the damage and the cover you have bought and how much your insurance company will be willing to reimburse you. Do not assume that the premium you pay covers all your repair costs because some of the proportion of money will go towards the profits and running costs of the insurance company. Your insurance company will be willing to cover the partial cost of your claim, not the full costs. It is because of the following reasons:

• You have underestimated the total cost of the claim and do not have a policy to cover your losses.
• Insurers might turn you down when they find that you are claiming an unrealistic amount. Henceforth, you will be paid only a part of it.
• There is a limit that an insurer can cover for the damage or loss. Make sure that you have read all terms and conditions carefully.
• The kind of loss for which you are applying for a claim is not included in your policy.
• You will be straightaway rejected when it is found that you have misled your insurer.
• Suppose you had an accident because of your fault. No claims are entertained for the loss caused by negligence.

Remember that when you pay extra for a car accident that is not your fault, you can seek reimbursement from your insurance company or the driver whose negligence resulted in the collision. They are obligated to reimburse the charges, but if you struggle to obtain money from them, you can take your insurer or the driver to court. Your insurance company can also make a claim if the accident did not happen due to your fault.

How will you meet the rest of the repair costs?

After filing a claim, you will get to know how much your insurance company will hand you money. If you think that you should be reimbursed more, negotiate with your insurance company. If you never missed any premium instalment, you are in a condition to negotiate with them easily. Your insurance company will also understand your concern for the sake of a good relationship with you. But sometimes, this scenario is not possible. What if you are asked to meet the repair cost partly? Here are the solutions:

• Take out a loan

First off, you should turn to savings. An emergency cushion is designed to meet such unexpected expenses. But in case of a lack of an emergency corpus, you should take out a loan. Small emergency loans could bail you out when you are in need of a small amount of money. However, if you need a large amount of money, you will have to rely on a $5,000 loan with bad credit.

These loans are easily accessible. The best part of these loans is that they are more affordable than small emergency loans and paid down in fixed instalments over a period of time. It will make it much easier for you to stick to debt payments. If you are looking to take out quick motorcycle loans with bad credit, you will have to pay slightly higher interest.

• Seek help from your parents

Your parents might help you cover the partial repair cost. However, it is necessary that you pay them back the money as soon as you arrange cash. Borrowing from family sounds more logical when you have to meet the gap in your savings. They will not be able to meet large repair costs, so they are ideal for meeting only small expenses.

The final word

Insurance companies do not cover the full repair costs, and there are many reasons why that is so. However, you have alternatives to fund the partially uncovered cost. First, you can dip into your savings, and second, you can take out a loan. Help from your family could be a good alternative when you need a small amount of money. At the time of buying the insurance policy, you must read all terms and conditions carefully.