Home > Blog > Mistakes That Leads To Rejection Of Auto Insurance

Mistakes That Leads To Rejection Of Auto Insurance

IamCheated.com Research Team | July 27, 2018  1:21:pm

As soon as the vehicle meets with an accident, the policyholder should inform the insurance company, regarding the damages. After this the insurance company will conduct a thorough investigation and settle the claim. But in some cases, the insurance claim will be rejected by the insurance company due to various reasons. In this blog, we will be discussing the mistakes which can lead to rejection of auto insurance claims.

1. Delay in filing claims

You must make a claim with your insurer, as soon as the incident takes place. It is good to inform the insurer before taking your vehicle to the garage, as they will pick up the vehicle free of cost and sent it to the garage for inspection. A slight delay is acceptable, only if the policyholder is injured. Otherwise, it is compulsory to raise the claim as soon as possible. 

2. Forgetting to file the FIR

It is compulsory to have the FIR to claim the insurance amount, in case of theft or third party losses like death or injury.

First Information Report (FIR) is an important piece of evidence to the insurance team which looks into claims, as it is an official description of the accident.

See Also: Tips To Avoid Buying A Fake Car Insurance Policy

3. Not securing evidence

You should take pictures of the vehicle and the accrued damages after an accident, as this will serve as evidence. Not having pictures will not lead to the rejection of the claim, but with pictures as evidence will your claim will be settled faster.

4. Furnishing Inaccurate Information

Sometimes policyholders give inaccurate information to the insurer while filing an insurance claim. After receiving the claim application, the claims team will investigate the matter and collect evidence. If the information given by the policyholder does not match the information collected by the claims team, the claim will be rejected by the insurance company. So it is advisable to give correct information while making a claim.

5. Valid license

If the vehicle has met with an accident and caused a lot of damages to another vehicle as well as third parties, the driver will be questioned. The driver should have a valid license. The claim will be rejected if the driver does not have a valid license.

6. Overloading

As per the law, only a certain number of people are allowed to travel in a specific type of vehicle. If the insurance company gets to know that the vehicle was overloaded at the time of the accident, the claim will be rejected. The claim will be rejected even if there is no fault on the driver's side.

7. Completing Repairs without informing the insurer

As soon as the insurance company receives a claim application from the policyholder, the claims team will start an investigation. The claim assessor will inspect the extent of damage caused to the insured vehicle. After this, the policyholder can either opt for a cashless claim or a reimbursement claim.

Under Cashless claim, the vehicle should be repaired in one of the garages in the insurer’s network. In case of a reimbursement claim, policyholder can repair his vehicle at any garage and submit the bills to the insurance company.

The insurance claim will be rejected in case the policyholder gets the vehicle repaired without informing the insurance company. This is mainly because no report will be created by the claim assessor.