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6 Reasons Why Car Insurance Claim Gets Rejected Research Team | Posted On Thursday, April 14,2016, 06:35 PM

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6 Reasons Why Car Insurance Claim Gets Rejected



You always dreamt of being a racer driver. You love driving your car at full speed down the highway. You are so fast. Other cars just disappear before you and you see them, only in the rearview mirror. You’re simply the best.

But accidents do happen…..You were ripping along the highway at top speed when another careless driver cut across your lane. You tried to stop your car in time but unfortunately you crashed into the divider. Your car was severely damaged in the accident. But you are covered under a comprehensive auto insurance plan. So why worry? You will get your car insurance claim settled in no time….. Is it so simple or is there something else you need to know.

What is a comprehensive car insurance plan?

While driving your car fast, you have met with an accident. The injury you cause to a third party (unrelated person), or damage you cause to his vehicle or property, is called third party liability. The Insurer compensates the third party for his loss. Under the comprehensive car insurance plan, you are covered for third party liability. You are also covered for the damage to your vehicle and for any injury you suffer in the accident.

So why does your car insurance claim get rejected?

You do not have a valid driving license

The reason for most car insurance claims getting rejected is due to simple acts of carelessness. You drive without a valid license and meet with an accident. Your license may have expired, or it may be for a different category of vehicle. Your license could even be a fake. If this is true, just forget about having your claim settled.

You use your car as a taxi

You use your car as a taxi. With car pooling becoming popular these days, using of personal vehicles as taxis is on the rise. You want to make extra money on the sides. Who doesn’t want some extra cash….Sometimes your car is a goods carrier…If you have registered your car as a private vehicle and you use it for commercial purposes, your claim would not be settled.

You drive under the influence of alcohol or drugs

This is a strict No… No… You could get in trouble with the law. Your car insurance claim will also not get settled.

You want to go green. You have installed an LNG/CNG kit in your car without informing your insurer

You have read about fuel guzzling SUV’s. The air pollution they cause. You want to go green and protect the environment. You also want to reduce the consumption of these costly fuels like petrol. You have installed an LNG kit in your car without informing your insurer and the RTO (Regional Transport Office). You can forget about your car insurance claim ever being settled.

SEE ALSO: Pradhan Mantri Awas Yojana: How To Choose The Right Home Loan?

You forget to transfer your name in the car insurance policy copy

You have bought a very good used car. You have forgotten to transfer your name in the car insurance policy copy. The car has been transferred in your name, but the car insurance plan remains in the name of the original owner. Now the car and the car insurance plan are owned by different people. For an auto insurance plan to be valid, you need to have an insurable interest in the car. In this case the car is in your name, but the car insurance policy is not in your name. Your car insurance claim could get rejected.

You start your car engine in a water logged area

You start your car engine in a water logged area. Water gets sucked into your car engine. This could lead to an engine failure. Cost of repairing your car engine costs a lot of money and you get nothing from your car insurance plan. Your car insurance claim will not be settled.

So go through these points and have your car insurance claim settled.

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