Having a car insurance policy is a prudent decision as it covers losses or damages caused to the car. The policy covers damages caused due to natural calamities, accidents, collisions, theft, fire and more. Though many insurance providers offer a seamless claim settlement process, they can also reject your car insurance claim on several grounds.
As a customer, you should be aware of the different reasons that can lead to an insurance company rejecting your claim.
Reasons why a car insurance company rejects claims
A car insurance company refuses to pay the claim amount if the policyholder violates the policy contract. Often rejection of a vehicle insurance claim can impact individuals financially. For instance, your car gets severely damaged, and the insurer rejects your claim request; you will have to pay for the entire repair cost.
Hence, it is essential to be mindful of why the insurance company denies your claim or rejects your claim application.
Here are some of the key reasons:
Asking for false claims
Any fraudulent claim against a car insurance policy can have severe consequences. Your application will get rejected if your insurer detects a false claim, and you may have to go through legal penalties.
Expired policy
Before filing a claim, policyholders must check if their insurance policies have expired or lapsed. If so, insurance companies will not approve such claims for vehicle damage.
Violating motor vehicle laws
As per the Motor Vehicles Act, everyone must abide by some rules and regulations to ensure road safety. Car insurance policies work on the lines of these rules. Violating these regulations will increase the risk of accidents, adding to an insurer's liability. Thus, any infringement of these laws will lead to rejection of your car insurance claim.
Not disclosing car modifications
Many car owners modify their cars to improve performance and aesthetics. While some additions like safety kits substantially bring down your policy premium, some may increase. Policyholders need to inform the insurance providers if they want to get coverage for the expensive modifications made to the car. If not, insurers will not provide coverage for the damages caused to the added features and reject the claim request, if made any.
Non-compliance to claim process
In case of accident or collision, policyholders must immediately inform the insurance company about the incident and damages caused to the car. Every insurance company follows some claim process and provide a specific deadline to raise a claim. The insurer will reject the application if you do not file the claim and submit necessary documents as evidence within the predefined time.
Things to keep in mind while claiming car insurance
Go through the following pointers to sidestep the chances of claim rejection:
Renew policies on time
Every car insurance policy comes with an expiry date; thus, it is wise for policyholders to renew the policy within the predefined time. If one raises a claim against an expired policy, the insurance providers will disapprove the same.
Keep a proof of damage
When you file a claim for accidental damages or injuries, the insurer sends surveyor to assess the damages and verify the claim authenticity. Keep photographs of your damaged vehicle as well as of the third party, if any. It will help in your claim process.
Repair your vehicle only after informing the insurer
If your vehicle meets with any accident and needs necessary repair and replacement services, inform the concerned insurer. As per the claim process, the insurance company will examine the damaged car at the accident spot. Your insurer may reject the claim application if you send your vehicle to a garage for repair before this inspection.
You can avoid rejection of your motor insurance claim if you follow the above tips.
