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Common Reasons of Rejection for Car Insurance Claim

Common Reasons of Rejection for Car Insurance Claim


Car Insurance covers your expenses in case any damage occurs to cars or drivers. There are different insurance plans are being offered by companies to make sure you are choosing the right one. It depends on the condition of your vehicle or model..
Most people have bought insurance policies for their vehicles, but when it comes to filing a claim it’s intimidating to many people. Professionals understand this fact that filing a claim is a bit tricky. Car insurance claims are rejected when there is a violation of the terms and conditions of the contract or when the claimant tries to fool the insurer. Once the claim is rejected that means now the claimant has to bear all the damages. Some other factors are also considered for the claim being rejected.

Claimants are supposed to be aware of their policy or coverage limits. Insurance companies do not reimburse any damages which are not covered or beyond the coverage limit. If the claimed amount is beyond the coverage limit, the insurer is only liable to cover the maximum policy limits and the difference will be paid by the claimant. At the time of signing up for the insurance, buyers can set policy limits.

When you are buying insurance, you must add the names of all drivers in the contract. At the time of the accident, any other person was driving the card whose name is not in the contract claimant is not liable for coverage. It happens when the claimant allows their friends or any other family member to drive his car and gets involved in car accident insurance companies deny the claims.

There are different insurance policies and each policy covers only specific events or parts. If a policyholder has purchased a policy for damages caused by earthquake or fire, there is no option you can get your claim in case of an accident. Buyers must read their contracts at the time of signing the policy contract, so they are aware of all covered scenarios.

If a purchased policy is lemmatized and only covers claim car is being used for your personal uses but the claimant has been using a car for business purposes and the car is get involved in an accident while performing work duties claim will be denied as per the contract.

Usually, Insurance companies do not allow any modification or customization in the vehicle but if the policyholder wants to make any customizations he is bound to inform or get permission from the client. If the client does not allow and the car is being modified in such scenarios companies deny the entire claim or they can drop the claim.

There is no country that allows you to drive while you are drunk or have taken any drugs. As per the laws, it’s strictly forbidden. In case the driver is under the influence of any drug and gets involved in an accident there are companies that reject your claims as per the contract terms and conditions.

Make sure if you have met with an accident and your car is insured to make a call to the police. Do not get into any personal settlement with another party. A police Information report is necessary to help your claim or else your claim will be denied.

These parameters are necessary and being set by companies. If you are missing or not following any of these most likely, you’ll get rejection against your claim. All Insurance Shop helps you to get the right policies as per your need