What Does “We Are Investigating Coverage” Mean in a Car Accident Claim?

If you’ve been involved in a car accident in Texas, you may have heard the insurance company say, “We’re still investigating coverage.” This phrase can feel confusing or worrying, but it simply refers to the insurance company checking whether the at-fault driver’s insurance policy is valid and active. Understanding what coverage means can help you know where your car accident claim stands.

What Coverage Means

Coverage essentially answers the question: Is the at-fault driver’s insurance policy responsible for paying my claim? The insurance company will review several factors, including:

• Is the policy active? If the driver has not paid their premiums, or if the policy has expired, the insurance company may not be obligated to pay.

• Is the driver covered? Some drivers may be excluded from the policy, meaning they are not allowed to drive under that insurance. For example, a teen or a household member not listed on the policy may be excluded.

• Does the insurance agreement apply? The insurance policy is a legally binding contract. If the accident falls outside the terms of the policy, coverage may be denied.

Essentially, the insurance company is verifying that the contract between the driver and the insurer is valid and that there are no issues that would prevent payment.

Why Coverage Matters

• Coverage determines whether the insurance company has to pay at all for your car accident claim.

• If there are issues with coverage, it may affect your ability to recover damages, regardless of fault.

• Most coverage issues are out of your control, but understanding them helps you see why the insurance company may delay or question your claim.

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