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Reasons why Car Insurance Claims are denied

Reasons why Car Insurance Claims are denied

Snapshot: Making a claim can be difficult in certain cases. And there are situations where an insurance company may deny the claim. What are the things that you should keep in mind? We take a look.

We all insure our cars for the reason of safety, and with hope that in case if there’s an accident, the insurance company would come to our rescue. However, nothing holds the insurance company from denying the claim made under circumstances clearly ruled out in the policy documents. Other than the lesser known reasons that might differ with the insurance companies, some obvious ones that apply to all of them, are really worth knowing. They are worth knowing because it’s legally abiding for the insurance company to walk away under such circumstances without paying a penny.

Driving under influence  

Driving under the influence of drugs or alcohol affects driving ability and can attract fine from traffic police. In a condition, where the car meets an accident while you are driving under the influence, nothing would prevent the insurance company from denying the claim if the allegation is substantiated by a police complaint.

The case of consequential damage

It’s assumed to be common knowledge that driving a car under certain situations can cause permanent damage to it. Driving on flooded roads, in stormy conditions where it can be blown away by strong winds are couple of examples. It constitutes consequential damage and keeps insurance companies from approving all such claims where the driver is at fault and has driven the car into such situations.

Unlicensed driver

A car may be owned by someone and he/she may allow members of his family to drive it. Almost every insurance policy covers damages caused by licensed driver regardless of the owner of the car. However, in case of accidental damages done to the car while it’s driven by a minor who is not in possession of a valid driving license would keep the insurance company from approving such claims.

Reckless driving

In an event where the driver has been found driving on the wrong side of the road, or violating the traffic rules, traffic lights, texting while driving etc, such cases would be treated as a case of reckless driving and the insurance company would not pay any damages that might be a direct result of this.

Car theft

Due to the reason that car theft are not easier to investigate, they are widely abused by dishonest individuals to make claims and draw money using insurance. Result of investigation that’s done lies solely in the hands of insurance companies and are always under strict scrutiny. Therefore, it’s advisable to lock your car before leaving and park it in a well-lit, suitable spot. Any negligence on part of the owner is likely to be seen as an encouragement and would prevent the investigating officer from providing the claimed amount.         

Since the policy is subject to terms and conditions dictated by the insurance company, it’s advisable to read all of them before purchasing a policy. Nothing stops the insurance company from providing the claim as long as it abides by the terms and conditions that it explicitly defines.

Read the complete procedure that you would need to follow to make a claim!

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