Getting a car insurance done is one of the most important steps one must definitely take after buying a new car. Car Insurance companies insure the policy holder that they will provide them with financial aid in case of any emergency or accident that might happen at any point of time with the car you have bought. You have to pay the premium amount to the car insurance company. An important point to bear in mind is that a third-party liability-only insurance cover will provide you a cover against third-party liability resulting from an accident. However there are many instances at which your insurance claim might get rejected.
Here are the 10 possible reasons why Car Insurance claims usually get rejected by insurance companies:-
- Delay in informing: It is mandatory for you to inform the car insurance company in case you have met with an accident or your automobile is damaged or stolen within the time limit prescribed by the insurance company, which is nearly within 24 to 48 hours after the incident took place. If you fail in doing so, there are high chances of your claim being rejected.
- Concealing the alterations: Everybody who buys a car wishes to modify it by adding and replacing some of the original components but sometimes your car gets inclined to theft and accidents due to these modifications. However, you are responsible to inform you insurer about the changes you make in the vehicle otherwise you claim will get rejected.
- Lapsed Policy: It is vital for you to keep track of your policy tenure and pay your due premiums on time; having failed to do so might cause unnecessary complications in getting your claim at the time of need.
- Driving without licence: It is mandatory for you to keep your driving license while you are driving, in case you do not carry it and meet with an accident, your insurer could deny your claim.
- Driving when intoxicated: It is very important for you to be cautious and sober while driving as any accident which occurs because of you being intoxicated with drugs and alcohol then the insurer is not responsible to give your claimed amount for the vehicle damage.
- Consequential damages: If you deliberately cause damage to your car then your insurance company will not provide you with any sort of coverage for it. For example, if you drive on flooded streets knowing that your car will suffer a hydrostatic loss, you are not eligible to claim your insurance.
- Damage by wear and tear: If your car has withered over time which all vehicles do after a period of time, your insurance claim on these grounds will be utterly rejected.
- Misusing personal car for commercial purposes: The underlying policies of the insurance companies are higher for commercial car than the personal ones. Therefore if any damage is caused on commercial basis on a personal car, your insurance provides is liable to reject your claim.
- Ignoring the terms and conditions: You must bear in mind that your insurance provide could reject for coverage if you do not agree to its clauses. For instance, if you fill in your car with weight much greater than its carrying capacity and meet with an accident, your claim is baseless.
- Raising a false claim: Your claim could easily get rejected if you put up a false incident and want to raise a claim.
It is very important for you to follow the steps needed for the car insurance claim before raising one. You should be careful enough to provide the insurer with all the needed documents so that your claim could not be rejected.