7 Scenarios Wherein a Car Insurance Claim Might Get Rejected

7 Scenarios Wherein a Car Insurance Claim Might Get Rejected

Car insurance is a mandatory investment as the law. Therefore, a

large number of car owners opt to pay a premium for a car

insurance policy to safeguard their cars against a possible

collision. However despite this, a majority of their claims are

rejected by companies. This is because people are unaware or

rather ignorant to the intricacies related to car insurance.

Therefore, a major chunk of car insurance claims are rejected. 

To stop this from happening, let’s go through a list of reasons

where a car insurance claim might get rejected:

1. Intimating your insurer late or not at all: Please be informed

that your claim is destined to be rejected if you fail to inform

your insurance provider in the stipulated timeframe. On an

average, you should update your insurance company within 48 to

72 hours from the time of accident or collision.

2. Driving under the influence of alcohol or any other drug: This

one is a no-brainer but still most people are negligent about it.

If you are driving when you have consumed alcohol not only are

you breaking the law, but even your insurance company will

refuse to cover in case of an accident.

3. If your car is being used for commercial purposes: If you

have a private car and it is being used for any commercial use

such as being used to carry goods or passengers than your car

insurance provider can reject your claim. This is because there

are different policies for Private car and commercial vehicle

policies.

4. If you drive without a valid license: In case you or anyone

driving your car is driving valid license and face an accident then

your coverage becomes null and void. Therefore, ensure you

renew your license on time.

5. Starting the repairs before inspection by insurer: When you

intimate your insurer about the collision or accident, a surveyor

will visit you to inspect the condition of the car and authenticate

your claim. Without this inspection, the insurance company will be

unable to trace the degree of the repairs and estimate the cost

involved. Therefore, your claim is bound to be rejected.

6. Failing to transfer the policy from the previous owner: There is

going to be some verification during the claim process. In case,

the car insurance policy is not in your name then your insurer

has the right to refuse your claim.

7. An Electrical or Mechanical Breakdown: In case your car is

damaged without any external collision due to some electrical or

mechanical breakdown then you are not covered by your car

insurance policy. In this case, you will have to shell out some

money from your own pocket.

Next time be more careful of all these reasons and ensure you

make maximum utilization of your car insurance policy.