Seven Scenarios Wherein a Car Insurance Claim Might Get Rejected

Seven Scenarios Wherein a Car Insurance Claim Might Get Rejected

As a law, car insurance is a required investment. To protect their vehicles from possible collisions, many car owners pay a premium to purchase car insurance. Companies reject most of the claims they receive, despite this. Because people don’t know or aren’t aware of the intricate details involved in car insurance, this is why so many people get rejected. A large percentage of car insurance claims are therefore rejected. Let’s look at some reasons why a car insurance claim could be rejected to prevent this from happening.

1. Not informing your insurance company within the time frame: Your claim will be denied if your provider is not notified by the deadline. You should notify your insurance company within 48-72 hours of the accident or collision.

2. Driving while under the influence of alcohol, or any other drug: This is an obvious one but most people fail to recognize it. Driving while you’ve had alcohol is a violation of the law. Your insurance company may refuse to cover you in the event of an accident.

3. Your car may be used commercially. If your private car is being used commercially, your car insurance provider could deny your claim. There are two types of policies: Private and commercial.

4. Driving without a valid license is illegal. If someone driving your car has a valid license, and you are involved in an accident, your coverage will be null. Make sure you renew your license in a timely manner.

5. Start the repairs before the insurer inspects: After you inform your insurer about the accident or collision, a surveyor will visit your home to assess the vehicle and verify your claim. The inspection is essential in order for the insurance company to determine the extent of repairs and the estimated cost. Your claim will be denied.

6. Failure to transfer the policy from its previous owner: This will require verification during the claim process. Your insurer can refuse to pay your claim if the car insurance policy isn’t in your name.

7. A Mechanical or Electrical Breakdown: Your car insurance policy does not cover damage to your vehicle that isn’t caused by an external collision. You will need to pay out your own money in this instance.

Be more aware of these factors and make sure you get the most out of your car insurance policy.


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