What if my insurance claim has been denied?

There can be many reasons why your claim was denied or outright rejected. Car insurance providers take the claims process very seriously and often conduct investigations before accepting or rejecting a claim. Here are some of the usual reasons why a claim is denied –

  • Lapse in premium payment

If you haven't been up-to-date on your car insurance payments, you can't expect the insurance provider to provide coverage for those months. You should keep your insurance provider in the loop about any payment delay, and when they can expect to be paid in full so your coverage isn't affected.

  • Faulty vehicle  

Another ground for refusing a claim is if your car has missed its regular technical checkups and maintenance. They argue that the vehicle was not roadworthy at the time of the accident, so it is very likely the reason the accident happened in the first place. Suppose you have modified the car and have not informed your insurance provider. In that case, they can refuse to provide any coverage because it no longer meets the specifications of the vehicle they insured.

  • Reckless and irresponsible driving

Driving recklessly that can endanger others on the road is a surefire way to lose out on your claim. The police report is essential to a claims process. If they found you were driving recklessly or under the influence, your claim will automatically be rejected even if the accident wasn't your fault.

  • Withholding information

Your insurance policy is as good as the information you put in it. Suppose you put false information in your policy or withhold information that could be important to the policy. In that case, you will not only face a rejected claim but a terminated car insurance policy. Though some might make mistakes on their forms, it is essential to be sure when filling information because it can be considered insurance fraud.

  • Vehicle used for unspecific businesses by unspecified people

Additionally, even if the information on your forms is correct, your claim can still be denied if your vehicle is driven by someone not mentioned on the insurance policy. Car insurance policies require the details of all individuals authorized to drive the car within the insurance parameters. The provider can decline the claim if a non-insurance-covered driver is driving the car. Similarly, if your vehicle has been registered for a certain purpose (personal use, commercial use, etc.), it mustn't be used for any other activity. This can be grounds for claim denial.

  • Avoidable negligence

Instances such as leaving your car unlocked, leaving a lit cigarette inside, and other negligence absolve the insurance provider from accepting a claim because these circumstances are deemed avoidable.

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