10 Reasons Why Your Car Insurance Claims Can Get Rejected

The whole purpose of buying car insurance is to get financial assistance from the motor insurance company on a rainy day. You pay a premium amount every year to make sure that any loss or damages to your car is covered adequately by your insurer and you don’t end up incurring a financial loss. This is possible only if you raise car insurance  with your insurer on time.

But not every car insurance claim gets accepted.

When you raise a car insurance claim, it either gets accepted or rejected. In some cases, your insurer may ask you to provide additional information before they accept or reject your claim. If your car insurance claim is accepted, your insurer will pay the claim amount to you. But if your claim is rejected, they won’t pay any money and you will have to bear the cost of repairing your car on your own.

No insurance policy comes with the guarantee of claim disbursement. The claims are accepted based on the terms and conditions of the policy. If all the terms of the policy are followed, the insurer will pay you the claim amount. But if the terms of the policy are violated, it will lead to the rejection of your car insurance claim.

In case you are wondering what can make your insurer reject your car insurance claim, then we have you covered.

10 Reasons for Rejection of Your Car Insurance Claims

Car Insurance Claim

Take a look at the 10 most common reasons why your car insurance claims can get rejected:

1. Making Fraudulent Claims

 Often, car owners make false claims to get their motor insurers to pay for non-covered damages to their car, which is highly unlawful. In case your insurer finds out that you have made a false claim, they will reject it. Moreover, they can also take legal actions against you.

2. Motor Laws Violation

 Every car driver is expected to follow the motor laws of the country. Violating the law is a punishable offence and hence, motor insurers do not promote it. Besides, motor insurance companies pay for unpredictable damages and violating the motor laws is considered intentional. Therefore, if your car was damaged while you were drunk or were driving without a valid license, your insurer will reject your claim. 

3. Not Disclosing Car Modifications

 Any modifications made to your car can impact its premium. Therefore, it is important to inform your insurer about any modifications that you make to your car at the earliest. In case you miss informing about any car modifications and your insurer finds out about it during claim inspection, your claim will be denied.

4. Expired Car Policy

 You can raise a car insurance claim only if your policy is valid. If your policy has expired, your insurer is not liable to pay for the damages of your car and thus, will reject your claim. 

5. Claims Resulting from Exclusions

Every car insurance plan specifies a list of situations/ expenses that are not covered. They include the car’s mechanical expenses, wear and tear and drunk driving amongst others. In case your claim results out of exclusions, your insurer will deny your claim.

6. Driver’s Negligence

 If your car gets damaged in an accident due to your negligence, it will not be covered under your car insurance policy. You are expected to drive cautiously and maintain your vehicle in good condition. So, if your car is damaged due to your negligence, your insurer will reject the claim arising out of it.

7. Using Private Cars Commercially

 Private cars are not supposed to be used commercially. Therefore, if your car gets damaged while being used commercially, your insurer has the right to reject your claim. 

8. Not Following Claim Procedure

 Every insurer has its own claim procedure. You need to raise your claim within the stipulated time as well as submit the required documents to raise a claim successfully. If you do not follow the procedure properly, your insurer can reject your claim.

9. Dishonest Claims

 When you fill a car insurance proposal form, you are expected to disclose all the requested information honestly. In case your insurer finds out that you had fabricated or given any false information about your car during claim settlement, your insurer will reject the claim.

10. Moving Your Car from Accident Spot

 When your car gets damaged in an accident, you need to inform your insurer immediately. Your insurer will schedule an inspection of your car at the accident site as part of the claim process. You are not supposed to remove your car from the accident site unless the vehicle has been inspected. If you remove your car from the accident site before the inspection, your insurer will reject your claim.

 Summing It Up

 Car damages can get very costly and can deplete your savings immensely. You can prevent that from happening by raising a car insurance claim. Therefore, you must keep the above-mentioned reasons in mind to avoid getting your car insurance claim rejected.