7 Scenarios Wherein a Car Insurance Claim Might Get Rejected
Car insurance is a mandatory investment as per 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 of the intricacies related to car insurance. Therefore, a major chunk of car insurance claims is rejected. To stop this from happening, let’s go through a list of reasons why 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 average, you should update your insurance company within 48 to 72 hours from the time of the 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 you 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 then your car insurance provider can reject your claim. This is because there are different policies for Private cars and commercial vehicles policies.
4. If you drive without a valid license: In case you or anyone driving your car is driving a valid license and faces an accident then your coverage becomes null and void. Therefore, ensure you renew your license on time.
5. Starting the repairs before an inspection by the 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 pocket.
Next time be more careful of all these reasons and ensure you make maximum utilization of your car insurance policy.
