7 Errors That Cancel Claims on Car Insurance
There is no worse rejection than that of your claim on car insurance. Imagine being in an accident. The incident itself is traumatizing; add to that the cost of repair, and any medical bills, and your entire week is ruined. Now imagine filing a claim on your car insurance only for it to be rejected.
As dreary as the above picture is it doesn’t have to be true for you. Yes, claims get invalidated every day. Yes, many people have horror stories of mounting repair costs and no insurance company to bail them out. But there is a way to make sure your claim against car insurance is never nullified.
It should be kept in mind that according to UAE law, insurance companies only have the right to nullify the ‘own damage’ section of a Comprehensive Coverage policy. The insurance company must also give thirty days notice to the policyholder. The paid-up premium must be restored to the car insurance owner after deducting the pro-rata premium for the period the policy has been in force.
Without further ado, let’s dive into the reasons your claim on car insurance can be rejected.
This is an easy one to understand. If you’re suspected of committing insurance fraud all claims that come through will be treated as suspicious. If at any time the insurance company finds out that you have lied on your forms, or mislead them about other crucial information they will reject your claim and cancel your insurance faster than the blink of an eye.
Keeping Car Modifications a Secret
When a car is insured the policy is designed keeping its specifications in mind. If you make modifications your basically changing the car specifications, and they are no longer covered by the insurance policy. The insurance company will be well within their right to reject claims to car insurance or nullify the insurance completely. To avoid this keep your insurance company in the loop about any changes you’re making to the insured vehicle.
Disregard for Traffic Laws
Sure, we buy car insurance to mitigate any risks on the road. But that doesn’t mean you can drive recklessly and completely ignore traffic rules and regulations. If you’re driving history is littered with fines you can be sure the insurance company will terminate your policy because you’re a risk they aren’t willing to insure.
Forgoing Car Maintainance
Your vehicle is just as good as it is allowed to be. It is your responsibility as a car owner to make sure it is regularly maintained and kept up to proper working conditions. If you let your car go the insurance company will refuse to honour claims on a vehicle that doesn’t meet its original specifications and wasn’t fit to be driven in the first place.
Forgetting to Lock Your Car
We’ve all been there. Our busy lives crowd our heads so much that something as simple as locking your car can simply slip out of your mind. This is not only a good way to get your car stolen its also an excuse insurance companies can use to reject your claim to car insurance.
Using Your Car For Purposes Not Mentioned in Your Insurance Policy
An insurance policy is very strict when it outlines the purpose for which the insured vehicle will be used. If the car is used for any purpose other than specified it is the insurance companies prerogative to deny your claim. If the car hasn’t been insured for off-road activity but it is used or that purpose than any damage that occurs because of it will not be covered.
The Car Being Driven By Someone Not Mentioned In The Policy
This circles back to the point about withholding information. At the time a policy is initiated the company asks for all documents pertaining to the licensed drivers who will be using the vehicle. Of course, this is to safeguard your claims. If any of the listed drivers are involved in an accident then the claim can go forward. But if the car has been loaned out and gets involved in a motor collision by the hands of someone who is not listed in the insurance policy, the claim will not be taken seriously, and not reimbursed.
Filing a claim can be complicated, especially if you have no experience with it. It’s best to consult experts before you start the process. At BuyAnyInsurance we have a team of industry experts with over fifteen years of experience. They can guide you through the process smoothly.
Originally published Oct 06, 2020 15:57:00 PM, updated May 31, 2021