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Reasons Why Car Insurance Claim Gets Rejected

IamCheated.com Research Team | April 24, 2018  1:58:pm

You love your car and have availed car insurance to protect it. But, what if this nightmare unfolds? What if the insurer does not settle your claim?

If you don’t want this to happen, take a look at reasons why car insurance claim gets rejected.

You don’t have a valid driving license

Your car insurance claim will be rejected if you drive your car without a valid license and meet with an accident. The insurance claim also gets rejected if your license has expired or if you have a license for a different category of vehicle other than the vehicle you drive. So, make sure you renew your license within the specified time period.

Using your car for an alternate purpose

While purchasing a car insurance plan, you must mention the purpose for which your car will be used. After stating your car will be used for personal purposes, if you use it for commercial purposes, your insurance claim will be rejected by your insurer. To avoid these unnecessary problems, you must inform your insurance company in case you change the usage purpose of your car.

If a driver is under the Influence of Alcohol

If the driver is under the influence of alcohol and meets with an accident, the insurance company will not settle the insurance claim.

Making modification without informing the insurer

You must inform your insurance company about the modifications you make to your car. Your insurance claim will be rejected, if you do keep your insurer updated on the changes. Modifications might include an engine upgrade, an addition of alloys and installation of LNG/LPG kits.

 If an insurance policy is not in your name

If you have bought a second-hand car and forgotten to transfer the insurance policy to your name, the insurance company will surely reject your claim. Insurance is always taken in the driver's name and not in the car's name, so whenever you buy a used car, make sure to transfer insurance policy to your name.

See Also: What To Do If Your Car Catches Fire?

Having a lapsed policy

You must always renew your insurance policy on time. In case you miss renewing your car insurance and the car meets with an accident, your insurance company will not settle your claim.

Filing a claim after getting a car repaired

Many people get their car repaired before informing the company about the damage. In such a case, insurance company will not settle the claim. So you must always inform the insurance company about the damage.

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