10 Common Reasons for Denied Car Insurance Claims

Car Insurance Claim: Due to the growing awareness among people, buying auto insurance coverage is now prevalent almost everywhere. Generally, automobile owners opt for a comprehensive auto insurance plan over a third-party auto insurance policy. This priority is driven by the more extensive coverage of the comprehensive policy.

If you already have car insurance coverage and want to know the reasons why the claim was rejected then we can help you.

1. Lack of valid driver’s license

If, at the time of the accident, you are found to be driving without a valid driving license, the auto insurance company will immediately reject your claim.

2. Drunk driving

Since drunk driving is prohibited, the insurance company has the power to deny your claim if you are involved in an accident while under the influence of alcohol. The insurer will always consider the risk before accepting your claim. Constantly driving under the influence increases the risk of collision, so no insurance will pay your claim if you are caught driving under the influence.

3. Failure to inform about insurance within prescribed time

Each auto insurance provider has a window of time in which you must notify them of the collision. One of the main reasons for an insurance claim being rejected is if you don’t inform them about the accident within the allotted time. The insurer has the right to reject the insurance claim if the policyholder takes more than the stipulated time.

4. Not informing insurance provider about installation of LPG /CNGKit

It is your responsibility to inform the insurance provider if you wish to install a CNG or LPG kit in your automobile. This update will be noted by the insurer when the insurance policy is renewed. But your insurance may reject your claim if you don’t inform them of this change.

5. Inability to pay insurance premium

The due date or earlier is always a crucial factor for the claim to be rejected. Vehicle insurance coverage is kept valid when payment is made on time. Additionally, your claim cannot be denied or denied by your insurance. If you don’t want your auto insurance claim to be denied, keep paying your premium on time.

6. Giving false information to the insurance company

Giving false information to your auto insurance provider in an attempt to lower the rate is not a viable approach. If the insurer becomes aware of this dishonest activity your insurance policy may cancel and deny the claim.

7. Automobile customization before insurance renewal

Generally, car owners love to add chic accessories to their vehicles. Be sure to let the insurance know if you want to customize your automobile or install any special additions. They will send an inspector to assess the new vehicle and adjust your auto insurance policy accordingly. One of the main reasons a car insurance claim is denied is not telling your insurer about the improvements.

8. Violation of the rules and regulations of the policy

Every auto insurance policy has its own set of guidelines. Every policyholder has to follow the same rules. If you do not follow these standards and guidelines, the insurer may reject your request for auto insurance.

9. Insurance claims resulting from subsequent losses

Auto insurance providers never pay for consequential damages. Therefore, an auto insurance provider can easily deny your policy claims if you continue to drive a damaged automobile and the engine deteriorates as a result of your delay in car repair and maintenance.

10. Lapsed Auto Insurance

Your auto insurance policy has an expiration date just like every other item. A policy holder should always remember to renew their auto insurance coverage from time to time. After the policy expires it no longer provides coverage for damages to your automobile. So, if you don’t renew your auto insurance, your claim may get rejected quickly.

Also See : Top Ten Insurance Companies of China

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