Since the law as made car insurance a mandatory obligation, many car owners have decided to use a premium method to pay for a car insurance policy to secure their car against possible accidents. This still doesn’t stop their claims from being rejected by some companies, this is usually because some people are not aware of the complexity related to car insurance policies, thereby making lots of car insurance claims toss aside.
Here are a few lists of reasons why some claims are usually rejected:
- Driving under the influence of drugs or alcohol: This shouldn’t even be talked about, but you’ll be surprised at the number of people that neglect this warning daily. Driving under the influence of either drugs or alcohol is terrible, not only are you breaking the law, it is dangerous, and your car insurance company won’t cover any accident that might occur during this period.
- Updating your insurer late or not at all: You should know that your car insurance claims will be rejected if you don’t notify your insurance provider within the specified timespan. Your insurance company should be updated within 48 to 72 hours from the time of accident.
III. Driving without a license: If you or someone else drives your car without a valid license and gets involved in an accident, your car insurance coverage becomes null and void. So, always ensure that your license is renewed on time, and don’t give your car to someone without a valid license either friends or family.
- Failing to transfer the policy from the previous owner: You’ll be surprised at the number of people that buy a car and don’t bother to go to the insurance company to change the name on the insurance policy of the car. If you get involved in an accident, and during the process of claim, they find out that the insurance policy of the car is not in your name, the insurer has the right to refuse your claim. So, when you buy a car newly from someone, and it’s insured, make sure you go with him or her to the car insurance company to have your name changed.
- An electrical or mechanical breakdown: If your car gets damaged due to an electrical or mechanical breakdown and not by an accident, you’ll have to look for money from your own pocket to cover the repairs. Your car insurance company policy won’t cover that.
- If your car is being used for commercial purposes: If your private car is being used for commercial purposes such as being used to carry passengers or goods, and you get involved in an accident, your insurance company has the right to reject your claims, because the rules that apply to private vehicles is totally different from the ones that apply to commercial vehicles.
VII. Starting the repairs before the inspection of your insurer: If or when you’re involved in an accident, and you inform your insurer about the collision, someone will be sent to inspect the condition of the car and verify your claims. Without this inspection, your insurance company will not be able to confirm the extent of the damage the accident did to your car, and thereby won’t be able to estimate the cost involved.