The main purpose of buying an insurance policy is negated when a car insurance claim is rejected. Claim rejections are rare but may occur if the claim process is not followed correctly or a claim is raised against an exclusion of the insurance policy. In this article, we will discuss 8 ways to avoid car insurance claim rejection.
1 Complete Car Insurance Renewal in Time
One of the primary reasons for a claim being rejected is that the car insurance policy was not active at the time of the accident. As a car insurance policy is technically a contract between the insurance company and the policyholder, it is valid for only a certain period of time. After the contract expires, the insurance company cannot pay for the losses suffered. Thus, it is very important that you complete car insurance renewal so that the cover remains intact. Thus, you will need to renew car insurance online on time to help avoid claim rejections.
2 Avoid Consequential Loss
Consider your car meets with an accident and the engine suffers minor damages. It is advised to not drive the insured vehicle after an accident as it can cause further damage. This damage is called consequential loss. An insurance company does not pay for any consequential damage as it can be easily avoided by simply not driving the car. Your claim can be rejected in case your car has suffered consequential loss. Thus, avoid using the vehicle after it gets damaged to avoid claim rejection. There are chances that your claim might be partially settled but you might suffer a monetary loss in this case.
3 Respect The Law
One cannot raise a claim for any damage caused to the vehicle when the law is broken. In case you frequently raise claims for damage on regular instances, your claim might get rejected. To avoid claim rejection, follow the traffic rules and avoid causing damage to the vehicle. Not following traffic rules also results in fines.
4 Declare Modifications
You need to inform your insurer about any modifications made to the insured car. For example, consider that you changed the fuel type to Compressed Natural Gas (CNG) without informing the insurance company, follwing which a faulty cylinder caused damage to your car. If you raise a claim for the damage caused to your vehicle, the chances of claim rejection are high as you did not inform your insurer about the modification. Thus, declare any modifications to avoid claim rejection.
5 Do Not Get Involved In Illegal Activities
If your car is involved in an illegal activity and suffers damage, your insurer is most likely to reject your claim. Some insurers mention this situation as a clear exclusion and will reject your claim. An illegal activity may include taking part in races, using the car for an immoral activity, or if the car is a part of an illegal activity. Your insurer cannot help you with the claim amount in this situation. Avoid such activities.
6 Intimate The Insurer On Time
While raising a claim, you need to follow the processes laid by your insurance company. Any deviation in the process may result in a claim rejection. For example, you may not raise a claim immediately after the occurrence of an incident. Even though cases where the policyholder is not in a state to raise a claim might be considered by the insurer, the company may not consider your application if you simply forgot to raise a claim. Thus, follow the processes in place and intimate your insurer about the claim in time.
7 Raise A Claim Before Repairs
Your insurer may reject your claim if you get your car repaired before intimating the insurance company. Usually, a claim assessor is assigned to you whose job is to understand the scope of damage suffered by your car. He gives an estimate to the insurer who in-turn begins with the claim process. If you get your car repaired beforehand, your insurer won’t understand the extent of damage suffered by the car. Thus, wait for your insurer to inspect the damage before you get the car repaired. This will help avoid a claim rejection.
8 Follow The Rules
Avoid driving your car if you do not have a driving license or if you are under the influence of an intoxicating substance. It is absolutely dangerous to drive in such situations. Also, if your car gets damaged in these situations, your insurer will reject your claim. As these situations are mentioned in the policy document under exclusions, the insurer is not liable to pay for the damage. You will have to bear the entire cost of damage. Thus, do not drive under the influence of an intoxicating substance or without a valid driver’s license to avoid claim rejection.