Here are 7 Reasons Why Your Car Insurance Claim Can Be Denied

When a claim is denied, it may be unpleasant, costly, and disheartening. Rejecting a car insurance policy claim is nothing new in the car insurance market. Though some may accuse the insurance company of deception for denying the car insurance claim, the rationale for the rejection by car insurance companies is mostly based on specific conditions.

You should be aware of the causes of vehicle insurance claim rejections in order to prevent having your claim denied.

Here are some of the reasons why car insurance claims are denied:

1. Making a fraud claim

An insurer may refuse your vehicle insurance claim if you attempt to construct a false image of the claim. This comes under fraudulent claims, and it's always better to be honest about your vehicle's damage.

2. Drink and drive

Drinking and driving is against the law. Therefore, if you are caught driving under the influence of alcohol, your unintentional damage claim will be denied.

3. Invalid driver's license

Driving without a license, driving with an invalid license, or driving while intoxicated are all common reasons for your vehicle insurance claim to be denied. Because these practices are unlawful in India, the insurance company can not authorize the claim.

4. Expired policy

As a car owner, you have the right to file a car insurance claim as long as your policy is current. If your four-wheeler insurance coverage has expired or lapsed, the insurance coverage company is not legally obligated to examine your claim and pay for your vehicle's damages. As a result, if your car insurance policy has expired, your motor insurer may refuse your claim.

5. Delay in claim intimation

There is a deadline by which you must notify the insurance company of the accident and associated damages. If you delay longer than the predetermined period to make a claim notification, the insurance company may reject your claim.

6. Undisclosed car modifications

When you renew your car insurance coverage, any extra components, accessories, or modifications stated in the prior policy are immediately covered. However, if you install additional accessories or modify your vehicle during the coverage period, you must notify your insurer before the policy is renewed. The insurance provider will add these additions to your coverage with an extra charge after assessing your car. If you do not report these modifications, your claim will most likely be rejected.

7. Violation of policy conditions

The sort of car insurance coverage you have obligates you to operate your vehicle in a specific manner. The claim is likely to be refused if you are not traveling within the defined geographical restrictions or if the vehicle does not meet the parameters given in the policy, such as a set engine capacity.

If your car insurance provider discovers these flaws when analyzing your vehicle, it may delay the processing of your claim. You may simply avoid doing the aforementioned things and have your auto insurance company satisfy your claims.

Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise towards informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our 'monk marketer' likes to meditate, meet new people and explore less travelled territories.