People tend to spend a lot of money while buying a new car. However, they forget that an unforeseen event can damage their car and put them in a horrible condition. However, if the car is insured properly with the best car insurance, the insurance company will reimbursethe cost of repairs. Under certain circumstances, your insurance provider might decline your claim.
The car insurance claim settlement process is not always a hectic process. An individual just needs to be aware of the details involved in the process. It is always better to be on the safe side while dealing with any car insurance claim settlement woes. In several cases, the policyholder is unable to understand the reason for their claim rejection. Following are the circumstances because of which one might face insurance claim rejection.
1. Not knowing enough about the car insurance policy
Many people buy car insurance just for the sake of buying, without investing any time in understanding it. They totally ignore the terms and conditions and make their purchase without knowing the features and benefits offered in the policy. Policy wordingsreduce the financial as well as legal liabilities of car insurance companies. Therefore, it is always recommended to read the policy terms and conditions carefully to avoid car insurance claim rejections.
2. Pay your premium on time
The act of delaying will only lead to a lapsed policy. Aninsurance company does notentertain aclaim if the policy has lapsed. If the car insurance renewal is not done before the expiry date then an individual might lose out on the No Claim Bonus. Thus, always watch on your insurance policy expiry date and renew it on time to avoid unnecessary hassles.
3. Inform your insurer first
Always inform the insurer before making any repairs to the car. Many people think to inform the insurer after the repairing work is done and expect the insurer to reimburse the cost. However, this is not the right way to ask for a claim. When you make a claim, the insurer sends their surveyor to inspect the car. The claim amount is provided to you once the surveyor, depending upon the cost of damage, estimates the cost of the claim does a thorough inspection. The insurer holds the rights to reject the claim in case they are informed after the repairs are done.
4. An accident caused due to drink and drive
If you are involved in drink and drive accident then the insurance company will reject your insurance claim. This is clearly stated in the exclusions section in motor insurance policies.
5. Car ownership not transferred in the insurance policy
In case you buy a second-hand car, then it is totally your responsibility to transfer the car insurance policy to your name. If you fail to do so, you won’t be able to get any claim from your insurer.
6. Not holding a valid driving license
In India, it is mandatory to drive a car with a valid driving license. Without a valid driving license, your claim will be rejected. It will be considered invalid and will be rejected instantly.