Why Did The Insurance Company NOT Accept My Car Insurance Claim?

You filed a claim for monetary benefits, but it was denied by the insurer. “Why did the insurance company reject my car insurance claim?” Here’s your answer.

You might see a lot of complaints about rejected insurance claims from the unhappiest auto insurance policyholders, right? Now it’s your turn to experience that bad service and unfair treatment! According to some people, they claim that this is the most terrible insurer with the poorest service. What about you? Have you ever questioned yourself: “Why did the insurance company reject my car insurance claim?”


Instead of blaming the contract too soon, remember that not all of the insurance contracts are in charge of covering all losses under any circumstance. In fact, insurance products are made to target specific risks while excluding others. Let’s find out the main factors that can result in your claim rejection:

Most common elements result in car claim rejection

It’s pretty common for all insurance companies to deny a big number of car insurance claims or just to lower the payment values. They tend to do this as if they’ve got the real reasons. So basically, filing your vehicle insurance claim and then getting monetary benefits can be a challenge! Here’s how you might be denied:
  • The insurer probably gets to the conclusion that you, the driver was wholly at fault if the claim concerns about the theft from the car. There would be a clause that can invalidate your claim in the car insurance policy.
  • The insurer is likely to call off that car insurance claim when the materials released during your application was incorrect.
  • One of the most common reasons why that claim might be denied is that the client could have taken the insurance policy for a casual private car while it was in fact for other commercial aims. If a customer owns a taxi, then he needs to utilize a policy which is specially made for taxis. 
  • Speaking of damages, which happen as a result of any specific accident, the client usually gets claims lesser than needed due to the vehicle depreciation. 
  • Therefore, a particular insurance agency places the car back to the same position when it was before that damage. For instance, as an engine of an old Maruti vehicle gets damaged, then the company will be liable to pay you the amount of money equal to that old engine. When it gets substituted by a new one, meaning that the depreciation is subtracted to fill the gap between your new engine’s cost and the old one.
  • When you can’t afford to give receipts to the backup claims of theft from the car, then your insurance claims will be rejected.
  • When the car value of yours is supposedly less than the amount of money, you’ve invested in upgrades. 
Most of the insurance companies want you to allow all the information to be seen, even if that information is not requested. By doing so, they would share information to justify denying your claims. If these cases emerge with your insurance claim, there are a few crucial points for you to take note:
  • The little print of the policy could bring loads of weight, so try to read it carefully before and after the claim.
  • Retain the exact records of your whole conversations and feedbacks together with every receipt backing up the claim. 
Instead of accepting the amount of money on offer, you’re given the right to ask for the payout. Besides, feel free to suggest your case for why it needs to be raised.

How to deal with a rejected car insurance claim?

Car Insurance company surely has the rights to refuse your claims once they find out that there’s something false. They will downsize and reject to pay that claim the amount filed with them. For example, when the claim is related to a car, or an asset within that car, getting stolen and then the insurers own their reasons to trust that you were responsible for that undesirable situation. It might be leaving your car unlocked throughout the night.

This is exactly where you need to ensure all types of information to be provided during the application can give good results. If the insurer is convinced that the claim is being created as a result of your car getting kept in the way that is not stated in the application. It could be when you us the car for business while merely declaring your domestic cover.

This is the reason why they can reject your car insurance claim. Thus, try to consider what is lying on the application! If not, it could become your false economy for sure! Besides, it applies to that claim, so do not try to lie about what indeed took place just to claim a bit more out of the insurance company.

Ensure to prove your ownership of any item that is stolen from your car, as if you can’t prove that iPhone is yours, then the insurer isn’t likely to pay for it.

But what if you’re driving a classic vehicle and won’t have an accepted value set by the insurer? The possible result here is that you could lose money when the company might consider the car’s market value. It’s probably not worth as the restoration project.

As said above, the responsibility you’re taking is to ensure that every material your vehicle insurance has on you and the vehicle itself should be accurate and recently updated. Never forget to inform them about any extra change. The insurance companies will consider all information to be true, and just carry an investigation at the time of a claim.

What to do if I’m not happy with the claim result? 

Well, as we said, you’re just within the rights to argue a claim after it’s denied or downsized by the insurer. There are always loads of reasons that you can rely on to do that. So we’re going to reveal you how to do that easily.

First, many reasons people can think of to dispute a bad claim result, such as a big difference in the explanation of print and policy guidelines. Or it could be a disagreement on the value of the item. Just inform the insurer that you want to dispute the claim.

Conclusion

Though filing a car insurance claim is a simple stage, this is not always the case. The car insurance company can deny your claim for different reasons. But hopefully, we’ve already discussed some reasonable reasons why that claim can be denied. So make sure to read your insurance policy carefully as well to understand under what kinds of conditions the claim might be rejected.

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