What to Do if Your Car Insurance Claim is Rejected

    What happens if your car Insurance Claim gets rejected? It has happened to some car insurance policyholders in the past, and it is sure to occur in the future.

    You sign up for a policy and faithfully keep up with your premiums only to find that you won’t get your payout or won’t get the entire amount.

    There are some reasons this can happen, and we will look at that shortly. But before we do, are there steps you can take to minimise the chances of your car insurance claim getting rejected? Sure there are.

    Understand how a Car insurance claim Works

    Car Insurance Claim

    For one, before you take out the policy, make sure you understand its terms and conditions thoroughly.

    Many people eagerly sign the dotted line after being given a glowing picture of the benefits the policy offers by their broker.

    But there are many details, especially relating to the claims process that will get left out of that rosy picture. It is upon you to read the policy carefully and ask as many questions as you can, specifically about what happens when the worst case happens, and you need to make a claim.

    Have you Got all the Documentation in One place?

    Another way to reduce the chances of your claim getting rejected is to make sure you keep all documentation relating to your vehicle carefully filed away. Besides the log book, you need to keep track of repair and service records and receipts.

    When you install an alarm make sure you keep receipts of this and other relevant documents safely. Also, records of all your interactions with the insurance provider  need to be maintained.

    Dates and times of phone calls and reference numbers from support should be on file. Of course, you need to keep proper records of the premiums you pay as well.

    Why your Car Insurance claim can get Rejected

    Here are some of the reasons you might not get a payout from your car insurance provider after an incident has happened that has lead to damage or loss of the vehicle.

    • Missing documentation to support your claim; for instance, if you repaired your car after an accident and did not get a receipt from the mechanic. It’s important to report an accident when it happens and get an affidavit from the police.
    • If the insurer assesses the incident and determines you were at fault for the crash, they may withhold compensation. If investigations reveal that you caused the fire that destroyed your car, these are grounds for your claim getting rejected.
    • Your claim may fall under one of the exceptions which your policy states you will not get paid. Reading the fine print in your policy and asking questions before signing up is important. It avoids you receiving a nasty surprise when you suffer loss and make a claim.

     

    In addition to this, if the actual value of what you’re claiming is found to be less than the amount you stated in your application, don’t be surprised if no payout is forthcoming or receive less than expected.

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