Possible Reasons For Your Car Insurance Claim’s Rejection

Reasons Why Insurance Companies Deny Car Accident Claims

Possessing insurance coverage is as discrete as locking your door when you leave the house. Both laws aim to safeguard essential assets. Is it reasonable?

Car policy coverage is designed to help you pay for damages or injuries caused by your vehicle. Your automobile is valuable since it enables you to get about or earns you a living; thus, you must maintain its functionality.

Whether you pick the required Third-Party or Comprehensive Car Insurance, purchasing a vehicle insurance policy requires confidence and transparency.

Your auto insurance policy covers damages resulting from:

  • Natural calamities, such as floods and cyclones.
  • Automobile-Related Accidental Damages
  • A collision with a third party may result in physical hurt or property damage.
  • Theft of your vehicle
  • An unintentional fire might occur in your vehicle.
  • Accidents that tragically result in an unfortunate event 

Apart from these occurrences, an insurance company can deny a claim in certain circumstances. 

As a consumer, you should be aware of the following car insurance rejection reasons while applying for a car insurance app:

1. When drinking and driving

You know that driving under the influence is illegal and will result in criminal prosecution. Suppose you and your buddies were drinking at a party hosted by a buddy. After supper, while driving your vehicle, you lost control and collided with a third vehicle. The traffic officers may instantly arrest you, and the party who sustained the loss may make a claim.

The insurance company will investigate the situation, and if they determine that your intoxication caused the accident and claim, they will refuse the claim.*

2. If your automobile was having problems operating

After an accident that created a ding on the right side of the bumper, if you claim that the automobile stopped abruptly, it may be a fraud.*

3. If you make a dishonest claim

When you buy car insurance online, it is given with an understanding that you would never intentionally defraud the insurer to obtain advantages. An insurer may refuse your auto insurance claim if you attempt to construct a fraudulent image of the claim.*

4. Delayed Claim Notification

You must notify the insurance company of the accident and associated damages before the deadline. The insurance company could deny your claim if you take longer than the allotted period to submit a claim notification.*

5. Operating a modified vehicle without notice

When you removed the insurance policy, you made certain disclosures regarding the car’s engine size, alloys, and other features. This is what your insurance coverage will cover. Yet, you upgraded your vehicle’s engine after some time without notifying the insurance.

Hence, if you are involved in an accident, the insurance company can deny your claim based on unreported vehicle modifications.*

6. Operating a motor vehicle without a valid driver’s licence

If caught driving without a licence, you will be considered equally accountable for any accidents you cause. In such a scenario, the insurance company can deny the claim immediately.*

7. Non-Divulgation of Imformation

Non-Disclosure of information is unethical when filing a claim or purchasing a policy. For example, if you do not inform the insurance company when claiming that you were intoxicated and caused the accident, and they discover this information later – your claim can be denied.*

8. Identified Losses

Your car policy does not cover deliberate damage, which is when you intentionally cause damage to your vehicle. It can be denied if you submit a claim for these reasons.*

9. Noncompliance with Policy Requirements

The type of auto insurance coverage imposes restrictions on your vehicle usage. Suppose, for instance, that your car is insured under the private category, but you use it for business reasons.*

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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