Five things Leading to Car Insurance Claim Rejections

Five things to Assure your Claim is Settled

A car insurance is only as good as the claim that is promptly settled.  Nobody likes rejections, but at times Insurance companies have valid grounds for rejection. While reckless use of the vehicle or negligence when driving are the most common causes for claims getting challenged. Any misdeclaration of any kind while taking the policy will ensure that claim won’t be settled or may delay the claim (if it’s relatively minor).  Customers must follow clean transparency when furnishing the information to the insurance co. It could be the accident record or No-Claim in earlier years or anything about changing the specifications of the vehicle etc. 

Over the years in the insurance business, I have witnessed several cases of claim rejected. Here are 5 cases where your car insurance claims can be challenged. 

Reckless Driving 

The most common cause for claims getting challenged is reckless driving or negligence when driving. The insurance company must not have any reason to believe that the accident was caused due to non-adherence to traffic laws and good driving habits. 

Driving while intoxicated 

Driving in an inebriated state is a legal offense. It can lead to damage to vehicles and cause fatal injuries to other passengers. In such cases, you could face criminal proceedings for negligence on your part. Owning car insurance is in no way a justification to your irresponsible behaviour on road. Hence, accident-related claims under the influence of alcohol or drugs are liable for outright rejection, as policies refuse to cover liabilities arising from such circumstances. 

Use for commercial purposes 

Under a personal motor insurance policy your vehicle is limited to private use only and usage for business purposes is prohibited. If you have rented your car or are using it to deliver goods, then the insurance company has the right to void your insurance claim in case of an accident. The cost of repairs or compensation to third parties are to be borne by you. 

Exceeding passenger limit 

There are chances rejecting the claim if you are travelled with more passengers during the accident than specified in Car Registration Card. The insurance claim will come under serious scrutiny. Financial expenses or personal liabilities that arise are to your personal account.  

Tampering with evidence 

For any claim evidence plays a vital role to substantiate your case. Shifting your car away from the crash site or removing the damaged parts tantamount to evidence tampering. This leads rejection of your claim and you have to pay out of pocket for the damages. The best measure is to leave the scene untouched and capture photos/videos as crucial evidence. Wait until the police arrives at the scene to document the facts in their report. 

Do keep in mind that car insurance companies never deny you claims for the right reasons.

If you need clarifications on why your claim was rejected in the past or how to make the settlement process faster, our experienced insurance brokers in UAE can offer guidance. Knowing the ins and outs of the UAE insurance market, we can latch you onto leading insurance companies to avail the best car insurance policy in UAE.