Not every individual understands the ins and outs of car insurance. It’s the very same reason why not every vehicle owner willingly signs up for one. Car insurance can be very confusing, especially when it comes to claims.
Not because you have motor insurance does it mean everything about your vehicle is covered. Like any other agreement, car insurance is a contract you get into with the insurance provider. And as expected, it does have stipulations that, unfortunately, get overlooked most of the time.
Below are the 5 top reasons why a car insurance claim may be denied.
Before filing your claim, take a look at the insurance policy to know which damages are covered. For instance, if your policy only covers damages due to accident, do not expect to get paid if the reason for the claim is human error. A car that hit the wall because it wasn’t properly parked is obviously due to negligence and therefore holds no liability on the part of the insurer.
Part of your agreement with the insurance provider is the disclosure of relevant information upon signing up or during the renewal of your policy. Previous claims, criminal offenses, and/or existing damages and repairs on your vehicle are some of the most common things you need to disclose to your insurance provider.
Every contract has its own sets of exclusions. Like your car insurance policy, it does have something that it doesn’t cover. Leaving your vehicle unlocked that results in it being stolen is an exclusion. While car theft is one of the major reasons why you protect yourself and your car with insurance, it’s something that can be prevented should you observe due diligence on your part.
Providing false information is a clear form of fraudulence. This does not only result in denial of a claim but may also have the law enforcement officers involved. Criminal cases may be charged against if active participation in fraudulent activity is proven.
Insurance providers have the exclusive rights in changing, altering, modifying the terms of the or even canceling the insurance policy without prior notice. By providing valid reasons, they can opt to discontinue your car’s coverage as a result of precautionary measures. Non-payment of premiums and non-disclosure of requested information are also reasons why your policy can get canceled.