Is it legal insurance company to deny loss for a totaled car?

Each state has different regulations that apply to insurance companies. However, it is possible for a company to deny a claim for a damaged or totaled vehicle.

Policy violations

Insurance companies have requirements in place when it comes to filing a claim. You are normally allowed a certain amount of time to report an accident. If you fail to report the damage within the time frame, your claim could be denied.

You may be required to file a police report and provide a copy of the report to the company. If your vehicle is stolen, you must make the required report to the police within the insurance company’s time frame. Failure to cooperate can lead to a claim denial.

Other potential problems may come from providing your insurance company with misleading information. Your premiums are based on the answers you give to the company’s questions. If you provide the company with the wrong information about where your car is garaged or parked, it could effect your claim.

Depending on your state laws, you could also be denied a claim if you allow an unlicensed driver to operate your vehicle or commit other driving violations.


If an insurance provider investigates your claim and finds fraud, you claim will probably be denied. For example, if you set fire to your car you would be guilty of arson. The company would not have to pay your claim. If you were found to have intentionally caused an accident, the company could also deny your claim.

You should look over your auto insurance policy closely to understand what exclusions may apply to your claim. ALLConnecticut Insurance is an independent insurance agency and we are available to answer any questions you have. When you work with us, you can even compare insurance quotes online. Talk to an independent agent today.