Insurance companies are always going to be concerned about their profits. They will care about you, the policy holder, to the extent that they are required. But they will always try to mitigate their liability in any claim that you bring.
Having said that, there are perfectly reasonable and legal reasons for an insurance company -- may it be auto insurance company or a life insurance company -- to deny your claim. Here are just a few of them:
- Your policy expired or you failed to keep up with monthly premiums. In these cases, there is little you can do. If you let your policy expire, either unknowingly or purposely, it means your coverage is gone.
- The contestability period. This is a period of time, usually two years, after a policy is signed by you and your insurer. If a claim is made during that time, the insurance company may contest your claim on the grounds that you weren't truthful or honest in the information you gave them when you signed the policy. This usually happens with life insurance policies.
- Fraudulent claims or violations of the policy. If you make an illegal or fraudulent claim, or if you violated the terms of the policy, then your insurer will certainly do everything it can to deny you coverage.
No matter the situation though, you should always carefully and closely look over your insurance policy to make sure you are being treated fairly. And if you have questions about your particular situation, then consult with an experienced attorney.
Source: Nasdaq, "Denied Auto Insurance Claim? What You Can Do Next," June 8, 2016