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Insurance Article

Five Reasons Why Car Insurance Claims Get Rejected

February 07 2017
Five reasons why car insurance claims get rejected

Five reasons that result in the rejection of your car insurance claims

A car accident can be a costly and traumatic event for the victim. If the concerned person is lucky enough to walk away without any physical injuries, there is still a cause for worry in the form of financial disruption. This worry although is taken care of by car insurance, yet there are chances that your car insurance claim could be rejected. To minimise that risk, here is a list of five things that can result in the rejection of your car claim.

Fraudulent Claim

It is obvious that your claim will be rejected if you are not putting in the correct information. Exaggerating the damages to get more benefit from the claim is an act of fraud. Such an action will not only lead to your claim rejection, but also can land you in a legal trouble. Ultimately, you will end up paying the expenses from your own pocket.

Delay in Accident Reporting

An accident can be a disorienting experience, and that is one of the reasons why most insurance companies give a certain time frame for it to be reported. Though that does not mean you can take your own sweet time and report it after a couple of days. Doing that may result in your claim rejection.

Undisclosed Car Modifications

Car owners often personalise their cars with modifications, which are mechanical or visual in nature. You are free to do as you please with your car, provided that you disclose the details to the insurer. In case you do not disclose it to them, there is a high probability that your claim will be turned down due to discrepancy in information.

Second-hand Car

The market for used cars is picking up steam as more and more people are opting for affordable, well-maintained alternatives. Before buying a used car, it is important to check the car as well as the paperwork for any issues. It is also crucial that the name on the Registration Certificate (RC) and that on the insurance policy matches. This will ensure that no problem is faced when the time comes for a claim. So, do not forget to get the name transferred on the car insurance policy.

Lapsed Policy

Lapsed policy results in the rejection of a large number of car insurance claims. A policy lapses when the insured does not make the premium payment on the due date, or even within the grace period provided by the insurer. Naturally, a claim on a lapsed policy will not be entertained, so remember to pay your premiums on time. This will not only avoid the embarrassment, but also the monetary stress.

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