8 Easy Tips to Prevent Car Insurance Claim Rejection
Rejections, of all kinds, can be disappointing. If the rejection is related to car insurance, it can affect your bank balance. Insurance doesn’t offer instant gratification. It is a promise based on certain terms and conditions.
It is natural for a policyholder to feel offended if the insurance company doesn’t live up to the promise of claim settlement. But there are two sides to a coin. And the car insurance company has its reasons for claim rejection.
1) Don’t Increase Consequential Loss
Consequential loss occurs when you try to run the car after an accident. This is a major loss in terms of damage. For example, if your car is submerged in water and you try to start the engine.
The car had already suffered water damage. But because you tried to start the car, additional water has affected the engine due to which the hydrostatic lock got activated.
In this example, your insurer will pay only to cover the initial damage caused by the water and not the expenses related to the hydrostatic lock. This consequential loss claim will be rejected.
2) Respect the Law
An insurer will honor a claim only when unintentional damage has occurred. When you break the law, your intentions are not in the best interest of you or those around you.
Thus, your claim will be rejected. Always make sure that you respect the law. For example, make sure your driving license is valid.
3) Follow the Claim Process
Each insurance company has a set of rules when it comes to their claim process. To get your claim honored, you need to follow your insurer’s claim process. This could include intimating the insurance company within stipulated time under the right conditions, or submitting the required documents, or coordinating with the claims team.
4) Be Honest
In case of an accident where multiple parties are involved, only the true claim will be honored.
Your claim will be rejected if you are found to be guilty of falsification. Remember that insurance companies carry out a thorough investigation of the incident via various means. Thus, always be truthful about what exactly caused the damage or injuries.
5) Renew in Time
Always make it a point to renew your car insurance policy in time. A claim will be rejected without any investigation if you raised it against an expired policy. Renew your policy and go through the inclusions and exclusions thoroughly if you want your claim to be honored.
Remember that reading the fine print will help you get a clear idea about the policy. You need to be sure that you raised the claim in a correct manner and against a corresponding inclusion.
6) Inform about Changes
One of the most common reasons for a claim getting rejected is that the insurer is not aware of the changes made to the car. For example, installing a CNG kit in your car.
Your claim may be rejected if the fuel type on your car insurance policy does not match the actual fuel type of your car. The same goes for any modification. You need to inform your insurer about all types of car modifications.
7) Don’t Repair without Informing
Last but not least, do not send your car for repairs without getting a go-ahead from your insurer. This is because, after an accident, your car will be surveyed for the extent of damage it has suffered.
Your insurer will give an approximate estimate of the expenses related to repairing this damage. Your claim can be rejected if you get your car repaired without a survey.
You need to raise a claim within a specified period and cooperate with the claims team regarding details related to the event against which the claim is raised. For example, the claims inspector might ask you some questions if you have raised a claim for a car accident. You need to answer those questions honestly.
If you fail to provide an honest narrative (don’t rely on the garage) or if you do not provide supporting documents (if needed), the insurance company might follow up with you for a while but eventually will reject your claim based on non-cooperation.