So your car insurance claim was rejected – is it something you could have done? Read the top 10 reasons your insurance may not pay out.
Published: Tuesday, November 15th 2016
The cost of an accident is something hardly anyone can be truly prepared for. Luckily, with car insurance, a substantial amount of that cost is covered. But what happens when your claim is rejected?
10 Reasons Why Your Car Insurance Claim May Have Been Rejected
Not the 'regular' driver - depending on your policy, a claim cannot be made if the driver, at the time of the accident, was not a listed driver. Some policies cover the regular driver only. Others cover a named driver or any licensed driver.
Not a licensed driver - this should be pretty self-explanatory. No license = no insurance. This includes not renewing your licence.
Unroadworthy car - if your car is considered unroadworthy, due to slick tires, broken wipers, or otherwise, your claim will be rejected.
Reckless driving - your claim could be rejected if you have not tried to prevent danger or broke a speed limit. Expect to see "Failure to take care" clause and “Breach of road traffic regulations” clause.
Drunk driving - if your alcohol level was taken at the scene of the accident, or thereafter, and was over the limit, your claim will be rejected.
Total loss policy - if an accident has rendered your car a write-off, your claim will not be taken. This if a total loss policy is listed in your contract.
Tracker or safety device not fitted - these devices are fitted into cars as it is mutually beneficial. The insurer knows the car is less at risk of being stolen or vandalised and the insured's monthly premiums decrease as a result. If it was discovered not to be in your vehicle, or fitted incorrectly, your claim could be rejected.
Vehicle inspection was not carried out - some insurers insist on inspecting your vehicle at the inception of the policy. This inspection gives the insurer knowledge of any pre-existing damage. Your car needs to be assessed by an official vehicle inspector. If you do not comply, your claim is rejected because you are in breach of your contract.
Vehicle not parked securely at night - if you have stated in your insurance policy that your car is parked safely behind a gate or in a garage at night, and it was found to be parked regularly in the street, your claim could be rejected.
Material non-disclosure at underwriting stage - this is the most important stage of getting your car insurance and requires full disclosure of all details. These include your claims record, a break in insurance cover, prior applications for cover being rejected, and judgments on your credit record. Full disclosure allows the ISP to assess your risk profile and decide your monthly premium. Some may feel they need to hide certain information to get a lower premium. While you think you may have gotten away with it, if, in the event of an accident, it is revealed that your claim is fraudulent, your claim will be rejected.
*Some companies require Telematics data which requires a telematics device to track the driver's journey and assess whether a car accident was their fault or not.
All the above reasons are clearly outlined in your car insurance contract. Simply put, if you read your insurance policy carefully, and follow all criteria, you should have no problem claiming from your insurance provider. The best thing your insurance provider would like to see is that you tried to prevent damage to your car at all costs.