Imagining getting the best available car insurance online and then getting your claim rejected because of something that could have easily been avoided! It surely is not something that you want. However, the rejection of car insurance claims is more common than you might think. Here is a list of reasons that can result in the rejection.
- Repairing your car before making a claim
Once you file a car insurance claim, the first thing the insurance companies do is assess the damage. One of their experts checks your damaged vehicle to find out what went wrong with the car and how much it might take to repair the car. Doing so, they directly help you to get the best deals. One very common mistake people make in this case is that they repair the car even before filing a claim. This results in an immediate rejection.
- Wrong information about the usage purpose
When buying a car insurance policy, it is mandatory for you to mention the purpose for which you will use the car. If you are buying an insurance cover for a personal car then that should be the only usage of your car. If you make a car insurance claim and the insurer discovers that your car was being used for any commercial purpose then the claim will be rejected. You cannot change the purpose without notifying the insurance company. The good thing is that there is a legitimate process to change the purpose. So, you always have the option.
- Modifying the car without a declaration
Some car owners like to make modifications to their cars to make it more suitable for their needs. These modifications can range from engine enhancement to a simple cosmetic change. However, this will lead to a rejection of insurance claim. The features of the car have to meet the factory standards for the claim to be accepted. You can always declare any modification made to your car in order to make sure that the insurance company knows about it. This rule applies to both new and second-hand cars.
- Not transferring ownership when buying a used car
If you are buying a second-hand car then it is very important that you transfer the ownership of the car to your name lawfully. Car insurance can be taken only against the owner’s name. Hence, if the car is not in your name, your claim will be rejected. If the previous owner had any car insurance then that too has to be transferred to your name.
- Not renewing the policy in time
Every car insurance policy comes with an expiry date. If the policy will lapse, any future claim will be rejected. Sometimes, people tend to forget about the renewal of car insurance once the car is old. You must remember that damages caused to your car will cost you a lot of money even if the car is old; maybe even more than repairing a new car. So, it is important that you renew the policy on the very day it expires to continue to have the cover.
Tips to avoid car insurance claim rejection
- Read the insurance policy’s terms and conditions carefully
- Renew your insurance policy on time
- Make sure that you have a legitimate driving license
- Do not drive under the influence of alcohol or drugs
Use an online car insurance calculator to find the best car insurance policy for your vehicle. Avoid making the above mistakes to ensure that your car insurance claim is not rejected.