When Can Car Insurance Claim Be Rejected?
Published On Nov 09, 2020 6:00 PM By InsuranceDekho
In the event of a mishap, we depend on the insurance we purchase for compensation. Rejection of claims can be disappointing, know how to prevent this by reading this article.
We purchase car insurance to give us a sense of protection, financial stability and peace of mind in case of a mishap. However, when a claim is made for the same and rejected it can be disheartening. To make sure you understand why this happened and what you can do about it, read this article. Moreover, if you want to avoid such a situation, we will also tell you everything you need to know.
When Can Your Car Insurance Claim Be Rejected?
The following are some common reasons for your which car insurance claims are rejected:
- Issues Related to the Driver: When a mishap occurs due to illegal driving insurance companies can refuse to compensate for the damages. This includes underage driving, driving without a license, driving while intoxicated etc.
- Reporting the Accident Late: Insurance companies expect policyholders to report any incident as soon as possible. The possible delays are provided for with a cushion window, however, if you take too long to do so, they can refuse to compensate for the damages.
- Adding New Accessories or Modifications to the Car: Before a policy covers the existing accessories and parts of the car, however, if you make changes in these components without informing the insurer, claims for the same can be rejected.
- Wear and Tear: This is a natural part of any machinery that is regularly used and cars are no exception. However, standard car insurance does not provide coverage for such damage and will not offer compensation for it.
- Improper Use: In the event that the car is pushed beyond its limits causing damage or an accident, the insurance company can refuse to pay your claim.
- Mishaps Outside Prescribed Policy Limits: Every insurance has geographical limits within which it will cover mishaps. In case the incident occurs outside these limits the company will not provide compensation.
- Non-Renewal of Policy: Failure to renew of the policy is equal to not having an insurance policy. Hence, a claim made on an expired policy will not be entertained. Click here for car insurance renewal.
- Policy Limits Exhausted: Each policy has a specified limit for the number of claims you can make within a year. If you cross these limits, the insurance company can refuse to provide compensation.
What Can You Do To Prevent Claim Rejection?
The following are the things to do after a mishap to prevent rejection of claim:
Contact your Insurance Provider as Soon as Possible: In the event of an accident contact the insurance company as soon as you can. This process is easier than ever before, you can do it via email, phone calls.
Collect as Much Information As You Can: When an incident occurs, the insurance companies investigate them to make sure the claims are not false. Hence, your best chances at getting higher claims comes with the information you can provide them.
Do Not Repair or Make Modifications Without Telling the Insurance Company: The Insurance premium is based on the car valuation and its parts, this changes with added accessories and/or repairs. Hence, if you do make these changes let the insurer know. Moreover, do not repair the car before an inspection by the surveyor, in the event of an accident.
What Can You Do If Your Claim Is Rejected?
If your claim has been rejected and you believe that it is outside their prescribed rules, you can dispute your claim for compensation. A tip here is to do your research on the inns and out of your policy before you do this. This process will be done with a neutral party, who will act as the arbitrator. Your claim will need to be proved and it will help to know your rights in the situation. Read more about it here.
In an overview, whenever an accident occurs it is best to let your insurance company know as soon as possible. Also keep in mind the scenarios in which the company is not obligated to pay for compensation. However, if you ever feel that the rejection is unfair. Do not worry, insurance companies do have a process to address the issues.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.