Reasons Your Insurance Claim May Be Rejected
You can take out insurance in the event that you die, become disabled and can get cover for the loss or damage to property or an item, such as a car. Many people go about their business assuming that once their premiums are paid, they are guaranteed a pay-out should something go wrong. But this is not always the case and there are many reasons why your claim could be rejected by an insurer.
Here are some of the common reasons why insurance claims can be rejected:
Insurance Claim Rejected: Unlicensed driver / Driver under the influence of drugs or alcohol
This needs little clarification. In fact, you’d be hard-pressed to find ANY insurer who covers their clients under these circumstances. Your claim will be voided if it comes to light that the driver – whether the regular driver or otherwise – was under the influence at the time of the incident. This applies to motor insurance providers, third party suppliers etc. It may seem unrelated that a claim is voided if the driver did not cause an accident, but in most cases, mechanical warranty benefits will not be covered should they come to light under the operation of an intoxicated person.
“Drunk driving is classified as anything over the legal limit (as well as failing a breathalyser). The legal limit is a breath alcohol content of 0.24mg per 1,000ml according to the AA.” (Info sourced from JustMoney)
Insurance Claim Rejected: Un-roadworthy vehicle
If you have an accident and your insurer finds out your wipers didn’t work or your tyres were smooth, your claim could be rejected on the basis of your car being in an un-roadworthy state. In the case of a service claim or mechanical warranty claim, the same applies. If the car was allowed to fall into a state of neglect or disrepair, the insurer is well within their rights to refuse your claim.
Insurance Claim Rejected: Vehicle inspection not carried out
Some insurers insist on inspecting your vehicle at inception of the policy. This is so that there can be no disputes about pre-existing damage to the vehicle. If you neglect to comply, you will be in breach of your contract and can have your claim rejected. The same applies for Value-Added products such as mechanical warranties.
Insurance Claim Rejected: You don’t pay your insurance premiums, or pay them late
If you have missed any of your premiums, or pay them after the due date, your insurance company will have grounds for rejecting a claim. It is safer (and becoming the norm) to setup a debit order for your insurance payments. This will help eliminate the threat of late or non-payment.
Insurance Claim Rejected: The car is not listed on the policy
This may seem obvious, but, if the car that is involved in an accident / suffer mechanical or electrical failure or requires a service from a paid service plan is not the one that is listed on your insurance policy, the claim will be rejected. It is important to make sure that all information pertaining to the car and drivers is up-to-date.
Insurance Claim Rejected: You are out of coverage
Some insurance companies will cover a total amount per year. That means that if you have a claim in the beginning of the year, and have a subsequent claim within the period allowed, your insurance company might not pay out if you have used all of your coverage with the first claim.
Insurance Claim Rejected: Late notification of a claim
Another reason that insurance companies may reject a claim is if you notify them of the incident outside of the specified timeframe listed in the insurance policy. Insure that any claim – whether it be mechanical failure, electrical failure or otherwise is reported to any establishment with which you hold a financial policy to recover it.
Insurance Claim Rejected: Not reading the exclusion causes properly
When you take out insurance it is vital that you are aware of what is and is not covered by your specific policy. Otherwise you could make a claim for something that has not been included in the policy -which will obviously not be paid out.