It is quite a stressful situation when you are dealing with a car accident case. There are multiple risks involved like injuries, damage to the car etc. Alongside, the fact that your insurance claim may get rejected by the insurance company also adds up to the agony. It is a very common scenario to reject the car insurance claims and most of the times the company is usually right. The company cannot be wrong as they have mentioned all the terms and conditions properly. It is the insurance holder who does not read everything correctly and ends up messing the whole thing. Even when you see a television commercial related to investments, insurance or any other financial product, there is a disclaimer which appears at the end of the commercial which most people ignore. One must always read all the offer documents carefully before making a final decision.
Reasons Why Car Insurance Claims Get Rejected
- There are certain accidents which happen when the brakes fail. Brakes usually fail due to normal wear and tear. The insurance company may or may not provide a cover.
- Any damage caused by negative consequences will not be covered by the car insurance company. For instance, if you have parked your car in a low lying area during monsoons and there are chances of water clogging, then the car insurance company will not cover those types of damages. If you try to ignite the car when the engine is flooded, it may cause engine failure. Again, this will not be covered by the car insurance company.
- If you have bought car insurance for your automobile which was meant for personal use, you cannot claim damages caused to your car which you are using for commercial purpose such as a cab service. There is a separate policy available for commercial
car insurance.
- You may not get any claim if you were driving under the influence of alcohol or drugs.
- Most insurance companies expect the insurer to report an accident within a couple of days. There are some companies which allow the insurance policy holder to take some more time. However, if the policy holder crosses a certain time limit, the company has an authority to reject your claim.
- The insurance policy should bear your name. For instance, if you recently bought a used car and the insurance policy still bears the name of the car’s previous owner, your claim will get rejected. Remember, get the insurance policy transferred in your name immediately after you own the car.