7 Scenarios In Which A Car Insurance Claim Could Be Denied

Traffic insurance is a legally required investment. For this reason, many car owners choose to pay a premium for a car insurance policy to protect their car against a possible collision. But despite this, most of its claims are denied by companies. This is because people are unaware, or rather ignorant, of the intricacies of car insurance. For this reason, the majority of car insurance claims are denied. To prevent this from happening, let’s review a list of reasons why a car insurance claim might be denied:

1. To notify your insurer late or not at all: Please note that if you do not notify your insurer within the specified time, your claim will be denied. On average, you should update your insurance company within 48 to 72 hours of the accident or collision.

2. Driving under the influence of alcohol or other drugs: It’s easy, but still, most people are negligent about it. If you drive while consuming alcohol, not only is it breaking the law, but even your insurance company will refuse to cover the insurance in the event of an accident.

3. If your vehicle is used for commercial purposes: If you have a private vehicle and it is used for commercial purposes such as carrying goods or passengers, your insurance company may reject your request. This is because there are different policies for Private vehicle and commercial vehicle policies.

4. If you are driving without a valid driver’s license: If you or anyone else driving your vehicle has a valid driver’s license and has an accident, your warranty will be void. So make sure you renew your license on time.

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5. Initiation of repairs before insurer inspection: When you inform your insurer about the collision or accident, an appraiser will visit you to inspect the condition of the vehicle and verify your claim. Without this inspection, the insurance company cannot monitor the extent of repairs and estimate the cost involved. Therefore, your request is doomed to be denied.

6. Failure to transfer policy from previous owner: Some verifications will be made during the claim process. If the motor insurance policy is not in your name, your insurer has the right to refuse your claim.

7. Electrical or Mechanical Failure: If your vehicle is damaged due to electrical or mechanical failure without any external collision, it is not covered by your insurance policy. In this case, you will have to spend some money out of your own pocket.

Next time, be more careful against all these reasons and ensure that you get the maximum benefit from your motor insurance policy.

About Lily Hammond

I have been working as an insurance consultant in my own insurance agency since 1998. Because I've been doing this for so long, I know every detail and I'm here to help you. You can find my e-mail address and work phone on the contact page.

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