10 Usual Causes For Rejecting A Car Insurance Claim

Car Insurance Claim : Due to rising public awareness, purchasing an auto insurance coverage is now rather prevalent almost everywhere. In general, automobile owners choose a comprehensive auto insurance plan over a third-party auto insurance policy. This preference is driven by the comprehensive policy’s more extensive coverage.

We can help you if you already have a car insurance coverage and wish to learn the reasons why a claim was rejected.

1. Lack Of A Valid Driver’s License

The auto insurance company will immediately deny your claim if, at the time of the accident, you were discovered to be driving without a valid driver’s license.

2. Driving While Intoxicated

Since drunk driving is prohibited, the insurance company has the power to deny your claim if you have an accident while under the influence. An accident is always looked into by the insurer before they approve your claim. Driving while intoxicated constantly increases the risk of a collision, thus no insurance will pay your claim if you are caught driving under the influence.

3. Failure To Notify The Insurance Within The Allotted Time

Every auto insurance provider has a window of time in which you must notify them of the collision. One of the main reasons an insurance claim can be denied is if you don’t inform them of the accident within the allotted period. The insurer has the power to deny an insurance claim if the policyholder takes longer than the allotted time.

4. Not Informing The Insurance Provider About The Installation Of An LPG /CNGKit

It is your responsibility to let the insurance provider know if you want to install a CNG or LPG kit in your automobile. This update will be noted by the insurer and brought up when the insurance policy is renewed. But your insurance is more likely to deny your claim if you don’t inform them of this change.

5. Inability To Pay The Insurance Premium

The due date or before can always be a key factor in a claim being rejected. The auto insurance coverage is kept valid when the payment is paid on time. Additionally, your claim cannot be rejected or denied by your insurance. Continue paying your premium on time if you don’t want your auto insurance claim to be denied.

6. Giving The Insurance Company False Information

Giving false information to your auto insurance provider in an attempt to lower the rate is not a workable approach. The insurer can simply terminate and reject your insurance policy claim if they become aware of this dishonest activity.

7. Automobile Customization Before Insurance Renewal

Typically, car owners love to add chic accessories to their vehicles. Make sure to let the insurance know if you want to have your automobile customized or install any very unique additions. They will dispatch an inspector to assess the new vehicle and then amend your auto insurance policy accordingly. One of the main causes of a car insurance claim being rejected is not telling your insurer about the improvements.

8. Disobeying The Rules And Regulations Of The Policy

Each auto insurance policy will have its own set of guidelines. Every policyholder is required to follow the same rules. If you don’t follow these standards and guidelines, the insurer will likely deny your request for auto insurance.

9. Insurance Claims Resulting From Subsequent Losses

The auto insurance providers never pay for consequential damages. Therefore, the vehicle insurance provider might easily reject your policy claims if you continue to drive a damaged automobile and the engine degrades more as a result of your delay in having the car repaired and maintained.

10. Lapsed Auto Insurance

Your auto insurance policy has an expiration date just like every other item. The policyholder should constantly remember to periodically renew their auto insurance coverage. The policy will no longer provide coverage for damages to your automobile after it has expired. Therefore, if you haven’t renewed your auto insurance, your claim may be quickly denied.

Also Refer : China’s Top Ten Insurance Companies

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