Tips to Avoid Car Insurance Claim Rejection
We all get heartbroken by rejections. And, especially if the rejection is related to a car insurance claim, it affects you more as there would be an additional financial strain that you go through. Now here comes a question, i.e. why does car insurance claim rejection occurs? What is the reason behind claim rejection? Well, there are multiple reasons which are responsible enough for claim rejection. The car insurance companies after taking into account such prominent reasons reject your car insurance claim. Thus, as a car owner, it is important for you to know those factors that lead to rejection. So that you can avoid them in your future claims hence can have a hassle-free claim experience.
Best Ways to Prevent Car Insurance Claim Rejection: Must Read
- Don’t be Involved in Consequential Loss: One of the biggest mistakes car owners usually make right after an accident is to start driving the already damaged vehicle. Doing so will further damage the actual condition of the vehicle by your own consciousness. As a result, your insurance company soon after the inspection can reject your claim due to consequential loss of your vehicle. The additional damage incurred by the vehicle on being driven after an accident/incident will surely put your case under claim rejected or claim denied status. So, don’t increase the consequential loss of your vehicle ever.
- Renew Your Policy on Time: Always renew your policy on time because if your policy has already expired, your claim will be rejected. Car insurance companies do not approve claims if your car insurance policy is lapsed/expired. Thus, keeping an eye on policy renewal will keep you away from a situation of claim rejection. For example, Arun approached his car insurance company to raise a claim as his car met with an accident. Soon after making a claim request, the insurance company rejected Arun's claim, the reason being when the incident took place he was having an expired car insurance policy. Carrying an expired car policy is not only a punishable offence but also makes you face claim rejection. Hence, it is always advisable to renew your car insurance policy on time to reap the coverage benefits of your policy.
- Do Not Raise Claim Against Exclusions: Read your policy document thoroughly as you will find a list of exclusions mentioned in the same. Exclusions such as Drunk Driving, Consumption of Drugs/Alcohol, Driving without a valid driving license, deliberately hitting a vehicle/involved in an accident, natural wear & tear of car, rash driving, racing, etc. are not covered under your car insurance hence you cannot get a claim against them. So do not forget to read all terms & conditions mentioned in your policy and make sure the reason for your claim is valid and does not fall under exclusions.
- Inform Your Insurance Company Quickly: It is wise to inform your insurance company as soon as any mishap occurs. Informing your company within 24 hours of the incident is advisable. Any delay can reduce your chances of getting a claim approved. The reason being, insurance companies investigate the incident with due diligence hence the more time you take, the more tampering with the evidence might happen. That is why insurance companies follow a strict claim procedure hence your promptness would really be helpful here.
- Declare Car Modification to Company: Any alterations or updation in your car need to be told to your insurance company. Be it installing some anti-theft devices or upgrading any other car accessory, it is wise to inform your company in the first place. In an unfortunate situation, where any such accessories or modifications are damaged or involved, your claim will surely be denied.
- Do Not Give False Information: Your claim will be rejected if you provide false information to your insurance company. At the time of claim, the insurance company does a thorough investigation and then approves your claim request. In case you are found to be guilty of falsification, immediately your claim would be rejected. Also, many individuals provide incomplete information in the claim form. You should always fill the claim form with utmost care and attention as any discrepancy can lead to rejection.
- Keep Your Documents Ready: If you fail to produce relevant receipts, documents at the time of filing a claim, there is a strong possibility that your claim may be rejected by your insurance company. Always keep your document handy be it important bills, receipts, or your policy documents. It is important to showcase all the documents at the time of claim. After the successful verification of these documents, your insurance company gives approval to your claim.
Car insurance and claims go hand in hand. You cannot separate both. But due to some mistakes or negligence , insurance companies may reject a claim. Hope, this article was helpful enough in giving you a sneak peek at how one can avoid the situation of claim rejection. Always keep the above-mentioned tips in mind to enjoy a seamless car insurance claim settlement.