After a car accident, especially a major one, car insurance provides that peace of mind that, after the deductible, everything will likely be okay. While we may have to fight them for a full payout or contact a lawyer to fight on our behalf, we know that we will not be left without any recourse. However, after a car accident, some car insurance companies deny coverage. Is that legal in New Jersey?
Most car insurance policies are approved for normal consumer driving. This means driving to work, road trips, going to school, etc. This usually does not include racing or stunt driving. It also does not include car enthusiast events. As such, if one takes their car to a private race track and an accident occurs there, their car insurance company may deny the claim.
Using a vehicle as one’s dwelling may also not be an approved use. And, if a car accident occurs while you are using the car as a dwelling, you may find that your insurance company denies the claim. And this is not just for those living in converted vans and other RVs.
Private auto insurance also normally does not cover for business uses. This could be using it while doing gig work (DoorDash, Uber, Lyft, etc.), or even while running errands for your boss. Any time that one is using their private vehicle for a business purpose could void their auto insurance coverage.
Willful damage and illegal acts
If you damage your vehicle on purpose or during the commission of illegal acts, you may also void your auto insurance policy. The illegal acts may be legal in your state, but not federally, like the use and sale of marijuana.
Some auto policies have exclusions for Acts of God and other natural disasters. This can include tornadoes, floods, hurricanes, etc. Some also have exclusions for man-made disasters, like war and nuclear meltdowns.
Just like gap insurance and uninsured motorist coverage, Lawnside, New Jersey, auto insurance policies can be modified to add items that would otherwise not be covered. Sometimes, insurance companies wrongfully deny coverage, which is when an attorney will likely be needed to fight them.