Car Insurance Coverage Denied?

April 9, 2008 - Question from a client:  I called my insurance company which will not pay for the damage to the car I rear-ended because I was working (delivering pizzas) at the time of the accident. I never told them I use my car for work. Do they have a right to refuse coverage?

My Answer:

Some insurance policies state that you are not covered if your car is being used for work. Since you say your insurance company will not pay for the damage to the vehicle you hit, the reason is probably because your policy has an exclusion that does not cover you if you are using your car to make deliveries or for other work purposes. Ask your insurance representative to show you where in the insurance policy it says that you are not covered. If in fact it is written in the policy that there is a written exclusion of coverage if you use your car commercially (while working), they will not have to pay damage to the other vehicle. However, it must be in writing in the policy.

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