Insurance

5 Reasons Why Car Insurance Claims Get Rejected?

Most of us pay our car insurance premiums to get monetary assistance at the time of need and it indeed is a big let-down if our claim isn’t approved by the car insurance company. This hence makes it very crucial for all car insurance holders to know the circumstances under which car insurance claims tend to get rejected and why.

Here are the 5 Major Reasons why car insurance claims get rejected

These are the following situations under which your car insurance claim may get rejected.

  1. In case of car damage due to intoxicated driving

One cannot avail his/her car insurance claim under the situation where the insurance holder’s car has met accidental damage while the insurance holder was driving under the alcoholic influence. Since drinking and driving is an illegal offence, such a claim would be rejected immediately, once the insurance company finds out the connection between alcohol consumption and accidental car damage.

  1. In case of car damage due to natural calamity

When an insurance holder puts forward an insurance claim to repair the damages his/her car has incurred due to natural calamity, it is more than likely that the claim will be rejected by the car insurance company. Car insurance companies are wired to meet only those accidental claims that have resulted due to circumstantial damage.

  1. In case of car damage due to non-accidental circumstance

Since car insurance companies only takes into consideration the car claims that have been based on accidental circumstances, a claim based on non-accidental situation is simply not liable to be accepted by the company. Check terms and conditions of car insurance online to find out what comprises of non-accidental circumstance as per their policy.

  1. In case of using a Private Car for Commercial Purpose

There is a different set of insurance laws, coverage and premium specified for the commercial vehicles; if the car insurance company finds out the claimants have been using their private vehicles for commercial purposes, their car insurance claims will be denied immediately.

  1. In case of damage due to the insurance holder’s carelessness

Careless behaviour where car insurance holders park their car at a No Parking zone or if their car meets damage owing to their own carelessness, the car insurance claims made under such circumstance are liable to be rejected and shall not be entertained by the car insurance company.

So, before applying for car insurance online, ensure reading the terms and conditions of the particular car policy you intend to choose. Find out more about the circumstances under which your claim is more likely to get rejected and why to be able careful in your dealing with your car.

About the author

Morris Noel