While there are many things we can do to manage risk, insurance remains the best way to protect your vehicle from the future unforeseen damages. For car owners, insurance is probably as essential as the fuel that propels the vehicle.
Many car insurance claims are partly or completely rejected on a yearly basis, due to negligence of drivers, breach of contract and policy exclusions.
Here are some of the possible reasons why your car insurance claim might get rejected and the things you must be aware of:
1. Unlicensed Driver
This is one of the major reasons for rejection. If a car gets in an accident and it is ascertained that the driver is unlicensed, the insurance company will definitely reject any claim.
2. Unspecified Driver
Most policies cover the car owner and will require that any other driver(s) should be specified, i.e. nominated and permitted to drive with regards to the policy. If this is not done prior to an accident, the claim can be rejected.
3. A Vehicle that is not Roadworthy
There are so many minor things that will constitute lack of roadworthiness and you must make sure they are taken care of before a car is used on the road.
A broken windscreen wiper, worn tyre, poor light, faulty brake, etc. are some of the common factors. If a car is involved in an accident and it is found that it was not in a roadworthy condition, any insurance claim will likely be rejected.
4. Reckless Driver/Overspeeding
Recklessness or gross negligence is one of the reasons a lot of claims get rejected. Many insurers insert what is known as the ‘Failure to Take Care’ clause in insurance policies.
This makes it legal for the insurer to refuse to honour your insurance claim if it is ascertained that you were overspeeding, involved in other forms of reckless driving and disregarding road traffic regulations.
5. Drunk Driving
It is a no-brainer that you should never drive while drunk or under the influence of drugs or other potentially harmful substances.
If there is an accident when you are driving under the influence of alcohol or other substances, your insurance company will definitely reject your claim if you make one.
6. Conflicting Details
Most vehicles are now equipped with electronic devices that collect real-time data about the vehicle. In an event of an accident, your insurance company will review your claim and the data contained in the electronic device.
If the information is at variance, they have every right to partly or completely reject your insurance claim.
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7. The Incurred Loss is not Covered
There are some car owners who do not properly understand what is covered and what is not covered by their policy. You have to understand this before making a claim.
It is essential that you sign up to an insurance policy that has comprehensive coverage to avoid loss.
8. Incomplete, Inaccurate, Inflated, or Misleading Information
Insurance companies are very meticulous with their processes. They are sensitive to information and you are required to be as plain, truthful, and comprehensive as possible while providing information in your claim.
If the information provided is not complete or inaccurate, they will be returned. If there is a deliberate attempt to submit a fraudulent claim, your claim will not be successful.
9. Upfront Photos or Pre-Inspection of Vehicle are not Provided
After an accident, it is essential that you take some photos of the condition of your vehicle and invite the insurance company to inspect the condition as soon as possible.
You may have to refrain from further actions until they are through with their assessment.
10. Loss Occurred Due to Lack of Maintenance
Every car has a maintenance routine specified by the manufacturers and you are required to follow them diligently.
If a loss is associated with a lack of maintenance and the insurer ascertains that the condition of the vehicle contributed to the loss, your insurance claim will likely be rejected.
11. Failure to Comply with Insurer’s Request for Information
Throughout the period of making a claim, your insurance company will need a lot of information and it will be in your best interest to comply and provide as much information as they request within reason.
Inspection certificates and proof of tracking devices are some of the most common documents requested by Insurance Companies.
12. Premiums are not Up to Date
There are people who are not prompt with their insurance premiums and this will certainly play a part in or complete rejection of an insurance claim. Unpaid premiums can mean you are without cover and this means a total loss.
It is necessary to understand why your insurance claim was rejected by your insurance company. In most cases, it boils down to a misunderstanding of the policy and negligence. As a car owner, you are required to carefully study your insurance coverage and fulfil your end of the agreement.
If your claim is rejected, your insurer will include the reasons for the rejection. It is left for you to consider the reasons and determine if they are true. If they are not essentially true, then you may need to file a complaint.
You should also be ready to provide evidence to back your complaint. If you are honest and factual, the rejection can be upturned.
For help with your insurance claims apply for a specialist broker.