Usually, filing claims for car insurance can be complicated as insurance companies do not guarantee approval of every claim application. As already stated, these claims can either be rejected or approved depending on specific car insurance claim rules.
A car insurance company refuses to pay the claim amount if policyholders violate or breach the policy contract. Often rejection of a vehicle insurance claim can impact individuals financially. For instance, if your car is severely damaged and the insurance provider rejects your claim request, you are required to pay for the entire repair cost on your own.
Hence, it is essential to be mindful of why the insurance company denies your claim or rejects your claim application.
Asking for false claims
Individuals cannot make any fraudulent claims with the insurer as it can have significant consequences. If your insurance company finds a false claim, they can immediately reject an application. In some cases, it can land policyholders into legal trouble as well.
As a vehicle owner, one must raise a claim against a valid insurance policy. If the insurance policy has lapsed or expired, the insurance company will not honour the claim for vehicle damage.
Violating motor vehicle laws
Vehicle insurance works hand in hand with the rules and regulations of the Motor Vehicle Act. There are rules and regulations that individuals need to follow to maintain safety on roads. Suppose policyholders violate the motor vehicle laws, the risk of accident increases, thereby increasing an insurer’s liability. In such cases, a policy provider may decide to reject an insurance claim following an inspection.
Not disclosing car modifications
After purchasing a vehicle, one may want to perform some modifications to improve its performance, driveability, and appearance. However, some modifications may increase the premium, while installing any safety kit can significantly reduce the premium. Irrespective of the mod, one needs to keep the insurance provider in the know and update the policy. If not, a policy provider may not agree to reimburse any expenses.
Non-compliance to claim process
Every motor insurance company follows a particular claim process. Vehicle owners must inform their insurance company about an accident and submit necessary documents and evidence in a specific timeframe. Individuals who do not follow the claim process specified by the insurer and do not cooperate with the surveyor, the claim manager, or the claims department of a policy provider, then a motor insurance company will reject a claim application.
When individuals know about the car insurance claim rules, they need to keep certain points in mind to avoid rejection of claims.