5 Reasons Your Insurance Claim Could be Rejected

Insurers can reject your claim…But why would they do this? Here are 5 reasons that your insurance claim could be rejected.

car insurance

Not Being Honest

When applying for any short-term insurance, you will need to be honest.

The insurer will want lots of information and from there they will decide what is relevant to your application.

One of the biggest misunderstandings with car insurance is the difference between business and personal use.

Personal use is driving to and from work, for instance, but if you drive to clients let’s say then it is business use. Think about how you use your car and if it is for business use then state this and don’t lie and say it’s for personal use.

Who is the Regular Driver?

The regular driver is the one that drives the car most of the time. If driving is shared within your household then state this.

Some insurers will pay a claim if the driver is licensed, however, others will stipulate that it must be the regular driver, which means that if something happens and the regular driver wasn’t driving and you have failed to add another driver then your insurance claim will be rejected.

Young drivers should also be mentioned as an additional excess is sometimes charged for drivers under 25 years. If you have not included this in your application or lie about who was driving then your claim will be rejected.

Pay Your Premiums 

Of course, to stay covered, you will need to pay your premiums. There is a grace period of 15 days to pay premiums but if you can’t pay for any reason then inform your insurer.

Is Your Car Roadworthy?

The risk of an accident is reduced when your car is roadworthy. Check tyres regularly as these play a large part in the handling and braking of the vehicle. If your car is found to be unroadworthy then your claim could be rejected.

Minimise the Risk of Loss 

Reducing risk is the responsibility of the driver, so don’t be careless. Make sure your car is locked, don’t leave valuables in your car or your keys and so on. If you suffer a loss because of your own irresponsibility then your claim might be rejected.

Always read your insurance policy so you know what is covered and what isn’t so that you don’t get placed in a financial pickle from a claim being rejected.

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