Suffering a car accident is devastating. Even if you don’t suffer any physical injuries, it can shake you to your very core. People have an attachment to their cars and consider them to be their second homes. However, even if your car suffers extensive damages, there is no guarantee your insurance will cover it. It is extremely heartbreaking to realize that your claim is rejected after so much heartbreak. So, if you are ever in this situation, here are some tips to avoid your claim rejection.
What is the cause of car insurance claim rejection?
The root cause of your car insurance claim being rejected is a lack of knowledge. People often buy car insurances without reading the fine print of the document. Therefore, they encounter great difficulties in making a claim. First and foremost, you need to read the terms and conditions of the document, including the fine print. You can always seek help from the insurance company, independent attorneys or brokers if you have any doubt.
How to prevent claim rejection?
To understand this, you need to focus on what may cause a claim to be rejected.
- The first issue is if you don’t pay up premiums on time. Being late on your premiums can cause the policy to lapse and you can lose coverage. Even if you have paid some premiums, it doesn’t matter if your policy has lapsed.
- The second issue is if you fail to inform the insurer at first. If you get your repairs done before the assessment, you may not get a settlement. You need to contact the insurance provider to let their assessors inspect the car. This is what will get them to quote the estimate. If you get repairs done first, you won’t be eligible for a claim. You will also need to do so within the stipulated timeframe. Failing to do so can lead to rejection of the claim.
- If you are high during the time of the accident, there will be a claim rejection. You may also end up facing criminal charges. Driving under influence is one of the most common exclusions for car insurance policies.
- If you forget to transfer the car’s ownership to your name in the insurance policy, the claim rejection will take place. If you don’t transfer the policy to your name after buying a car, the policy may lapse. It may also become invalid if you aren’t on time and any claims you raise will be rejected.
- Not informing your insurer about alterations to the car’s engine are also valid grounds for claim rejection. For example, if you install a CNG/LPG kit and don’t tell your insurer, the claim may be rejected. Any negligence in this matter may cost you a fortune.
- Another popular issue is when you make use of your private cars commercially. If you don’t switch your policy appropriately, your insurance will lapse
- Driving without a license is another common case where a claim won’t be honored.
If you wish to successfully file a claim for your car accident, ensure that you avoid these mistakes. In case of any situation where you feel your provider is unreasonably shirking off responsibilities, contact a lawyer. An independent insurance attorney can help you take action against defaulting insurance providers.