Reasons Why A Car Insurance Claim Gets Rejected

Driving without car insurance is not only risky but also an offence, punishable by fines and additional penalties. This severe consequence is a key motivator for individuals to purchase car insurance, ensuring financial security and peace of mind in unforeseen events.

However, it is important to note that every car insurance claim that the policyholder raises may not be settled, as the insurance company reserves the right to accept or reject a claim.

To help policyholders avoid claim rejection, this post outlines the primary reasons why car insurance claims get rejected and offers practical tips for a successful claims process.

The Most Common Reasons Why Motor Insurance Claims Get Rejected

Inaccurate Information

Providing inaccurate information on your insurance application or claim form can result in the rejection of your claim. This includes not disclosing adequate information or sharing false details.

Tip: It is recommended that you double-check the insurance claim form, disclose all relevant information and keep a record of vehicle usage and previous claims.

Expired Policy

Another common reason why a motor insurance claim gets rejected is a lapsed/expired policy. Failure to renew your policy on time leads to no coverage for damage or losses, claim rejection and heavy out-of-pocket expenses.

Tip: Stay vigilant about policy renewal dates and premium payments and renew your policy before the grace period completes.

Lack of Necessary Documents

To verify the claim’s authenticity, insurance partners and providers demand specific documents, such as the FIR, policy documents, etc. If you fail to provide the supporting documents, you can face claim rejection.

Tip: You should review policy requirements, gather all the required documents in advance and follow up with the insurance partner to confirm the document receipt.

Unreasonable Delay in Intimation

Usually, insurance policies have a specified time limit for raising claims. Failure to make the claim request within this time period can result in denied claims.

Tip: To avoid unreasonable delay in filing a car insurance claim, report the incident to the insurance company promptly to minimise the risk of claim rejection.

Policy Exclusions

Policy exclusions are certain conditions and circumstances that are not covered by the policy, for example - driving the insured car without a valid licence. Car insurance claims raised for reasons that are present under policy exclusions are likely to be rejected.

Tip: Read the policy’s terms and conditions and policy coverage carefully when purchasing the insurance policy.

Driving under the Influence

Most car insurance policies explicitly exclude coverage for accidents that occur while driving under the influence of alcohol or other intoxicating substances, thereby increasing the chances of car insurance claim rejection.

Tip: Never drive under the influence of alcohol or other intoxicating substances.

Unapproved modifications

Getting your car modified before or without taking the insurer's consent or authorisation often results in rejection of the claim.

Tip: To avoid this, you must inform your insurer right away and obtain approval for modification. Moreover, get your car repaired at a garage which is a preferred partner of your insurance company to facilitate a hassle-free repair and car insurance claim process.

Wrapping Up

Despite having insurance, many policyholders fail to get their claims settled due to various reasons which leaves them exposed to financial difficulties.

Thus, it is advisable to stay aware of the reasons for claim rejection and take necessary precautions to ensure claim approval.

Moreover, contacting reputable service providers like AIS Windshield Experts for car repairs can further protect your interests.

AIS Windshield Experts is a trusted name in the industry, partnering with several leading insurance companies to provide top-notch, insurance-approved car glass and windshield replacement and repair services to policyholders.