It is not uncommon for car insurance companies to reject your car insurance claim. It is not only extremely frustrating experience after the hassling process of filing the claim but it also gets your financial equilibrium to go topsy-turvy. Several factors come into play which leads to the rejection of your claim. Let’s throw light on few reasons and common mistakes that might lead to your claim getting rejected. Taking care of these might prevent your claim from getting rejected.
- Delay in filing the claim
This is one of the common mistakes made by most policyholders. Usually, you are required to report an accident within 24 to 48 hours maximum to the insurance company. Few insurers do give an extended relaxation time but no claims are entertained beyond this limit. Hence, you must always inform your insurance company as soon as possible after an accident to avoid unnecessary rejection of your claim.
- Repairing your car before filing a claim
This is another common mistake. By repairing your car; you do not give a chance to the insurer to assess the damage. If their authorized personnel fail to understand the accident and cannot inspect the vehicle to conclude the extent of damage; they reject the claim as having no grounds. Giving them time to inspect is profitable as they would not only honor your claim but may also help you get the best deal for the repair work.
- Submitting a fraudulent claim
There are many people who tend to exaggerate the damage and injuries caused while filing the car insurance claim. Inspection by their authorized personnel marks your claim as fraudulent. This not only has a serious legal consequence but can also make you responsible to pay the insurance company, a penalty that would compensate the insurance company for spending on the investigation of your car accident.
- Not adhering to policy terms and conditions
Each policy has its own terms and conditions which must be minutely read and understood by all policyholders. Being careless about it makes your claim null and void automatically. It could be as simple as using your personal car for commercial purposes and not informing the insuring company to make alterations in your policy.
- Not informing about modifications
You might change the engine of your car, added few accessories to it and upgraded it in various ways. It is your duty to inform the car insurance company about all modifications made to the car. This omit of information is all that the insurance company needs to reject your claim.
- Your car insurance policy has lapsed
Failing to pay even a single of your car insurance premium on time can cost you dear. Your policy gets at a high risk of getting lapsed. In such a scenario; it is easy for the insurance company to reject your claim.
- Transfer of ownership not completed
A car insurance is always taken in the car owner’s name and not in the car’s name. Thus, if you have purchased a used car and omitted to have the car insurance transferred under your name; your claim is likely to get rejected as invalid. You must ensure to get the transfer of the car policy completed at the time of purchasing the car itself.
- Issues pertaining to the driver
The person who was driving the car at the time of the accident must fulfill certain criteria’s like he must be sober, be of legal age and must have a valid driving license. Moreover, he must not be driving the car after damage; must not park it in the no-parking zone, should not have more than the legal number of passengers allowed, etc. If any of these mistakes get established; you are likely to get your insurance claim rejected.
- Failing to file a FIR
Be it an accident or a car theft or any such issues; you must always file a FIR for it. This serves as an official proof and a piece of vital evidence for the insurance company. The investigation also makes it easier to diagnose who is at fault and thus it makes the claims process go smoother. Failing to file the FIR robs you of this concrete evidence and leads to the claim rejection.
- Failing to gather evidence
If possible, one should gather as much evidence as possible at the time of the accident. Taking pictures from your smartphone is concrete evidence that just might be your savior. Lack of this evidence may not lead to claim rejection but it can certainly tilt things in your favor.
- Consequential damage
Sometimes we tend to use the car even after it has broken down. This could be like dragging your car even when its tires are flat, driving in flooded water knowingly and taking the risk of a damaged engine, etc. Continued use even after car damage will get your claim rejected.
Wrapping up
Filing a car insurance claim truthfully and in the right manner and time will increase the chances of your claim getting approved. You must also be well aware of the terms and conditions of the policy on that you are clear on what is insured and what is not.
