Reasons for rejecting car insurance claims and how to avoid them

 

Reasons for rejecting car insurance claims and how to avoid them

This article provides detailed evidence of why car insurance claims are rejected. In this article, you will also find tips using that you can avoid such rejection scenarios.

Rejection is difficult to deal with, whatever it is for visas or insurance claims. Rejecting a car insurance claim can put you in distress and confusion. Therefore, it is important to know why your insurance claim can be rejected.  This article will take you through a number of reasons that can lead to the rejection of your car insurance claim and will also provide some advice on how to avoid it.

Common reasons for refusing to claim car insurance

Here are some common reasons why a car insurance claim is rejected - 

Not telling the truth.

The car insurance policy is not for profit, but to compensate for losses incurred by the policyholder. It is based on the principle of "maximum goodwill". Thus, concealing or distorting facts amounts to fraud. Such an act could lead to legal complications except to the denial of the amount of the claim. Therefore, you should always state the facts about the accident and claim your car insurance to your car insurance provider to avoid rejecting your claim.

Failure to disclose car modifications

Car enthusiasts often get their car parts either to enhance the performance or appearance of the car. Such modifications that enhance the performance and speed of the vehicle can lead to a deterioration in the security of the vehicle, thereby increasing your car's premium. Thus, if you do not disclose information regarding these amendments, and later get involved in an accident or any other unfortunate event, it is very likely that your insurance provider will refuse to claim insurance on Car.

A policy that has expired.

All insurance policies come with a fixed validity period and then you need to renew in order to maintain their activity and enjoy the benefits available under them. If you fail to renew your expired insurance policy, you will not be able to file a claim and receive insurance benefits. Therefore, if you claim under an auto insurance policy, your claim will be rejected by your insurance provider.

You may also want to read: - Common mistakes to avoid while buying and renewing car insurance

Disobeying rules and regulations

Car insurance works alongside the law. Underage driving, drunk driving, driving without a valid license, etc. are punishable offences that may result in a refusal of claim if exercised during the incident. If the insurance company finds that you did not comply with the law during the incident, your insurance claim is very likely to be rejected. 

Commercial use

Insurance policies contain specific classifications to cover different purposes of the vehicle. There are separate insurance policies for private and commercial cars. If your insurance policy is for a privately owned vehicle, it is likely to be rejected if the accident occurs while being used for commercial purposes.

Ways to avoid rejecting insurance claims

Here are some easy tips you can do to avoid rejecting your car insurance claim - 

To be honest and cooperative with the insurance claims team

Raising a claim in time and honesty about the incident with the claims team is the key to getting your insurance amount. Claims inspectors may question you about the incident and request specific documents. It is useful to provide honest answers and documents required to avoid rejecting your claim. 

Renew your policy on time

Renewing your insurance policy is critical as you cannot predict accidents. Preparing for a disaster is safer than detecting it. No insurance company approves insurance claims if the policy expires. It is always recommended to renew your policy and update with it. 

Don't fix your car without informing your insurance company

Repairing your car without informing your insurance company can lead to your insurance claim being rejected. This is because the company conducts surveys on the damaged car after the accident to ensure this. It is important to get the thumbs up from the insurance company to move forward with the reforms. 

Don't break traffic laws.

Make sure you abide by the rules while driving. Any incident that occurs when you violate the law will result in your insurance claim being rejected.

Read also

Insurance tips to consider before buying a car

Take away

Requiring your car insurance may seem complicated, but it's important to adhere to the right protocols at every step to ensure you stay safe and avoid rejecting your claim. Make sure you don't hide the facts from your insurance provider at the time of filing a claim. Also, try renewing your car insurance policy in due course so that you do not land if the claim is rejected because your insurance policy expires.