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Reasons why insurance companies can reject your car insurance claims


Reasons why insurance companies can reject your car insurance claims

There are various reasons that can lead to the rejection of the claim raised towards your car insurance plan, to find out some of the most common reasons and avoid making a mistake in the future read the article.

Facing rejection of any kind can be disappointing. In the event, this refusal relates to your car insurance and can then adversely affect your bank balance. The existence of an insurance cover does not promise immediate gratification but depends on the terms and conditions. If your insurance company does not keep the promise of settling the claim, it is clear that you feel a little frustrated and offended. However, the car insurance provider has its own reasons for rejecting your claim.

Reasons why insurance companies refuse to claim

By going through some of the points listed below carefully, you can avoid making any such mistakes in the future and make sure that the claim you have raised gets settled smoothly:

1. Drink and drive

Drinking and driving on public roads is an illegal crime and can lead to criminal treatment on you. For example, you consume alcohol at a party and you drive home after the party, while driving you lost control and got into an accident with another car. Traffic police will immediately grab you and the party that was suffering the loss would make a claim. Your insurance provider will investigate the entire scenario and when you know you were drunk while driving, they will categorically reject your claim.

2. Make a fraudulent claim

The insurance company offers you an insurance plan based on the principle of "maximum goodwill", which means that an individual should never sue for fraud.  In simpler terms, insurance is not available for profit but to mitigate losses incurred. In case, your insurance provider comes to the fact that the claim has been raised with the intention of fraud, they simply reject it. Moreover, this can also have legal implications.

You may also want to read: - Best additional car insurance covers and their importance 

3. Expired insurance plan

You can sue your car's insurance plan as long as it is active and valid. In case, your car insurance plan has expired or expired, then even your car insurance company is not legally obliged to consider your claim and compensate you for the damages incurred by your vehicle. Thus, your car insurance provider can say "no" to your claim request if the plan expires.

4. Commercial use

A commercially used four-wheel drive cannot be sued when it is insured by a special car insurance plan. Insurance companies offer a distinct cat insurance plan for himself.

Check: - Settlement of car insurance claims

Read also: - The Importance of Additional Covers in Car Insurance 

Take away

Repairing cars can turn out to be a very expensive issue for you. The last thing you want to happen is to face rejecting your insurance claim. If you remember some of the above points in mind, you can save yourself from the horror of facing a rejection of the claim.

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.