Having a car insurance claim rejected can cost you a fortune. You might be waiting for the compensation money to restore your savings. But rejection in the claim application can put a strain on your finances, especially when the amount is quite significant.
As a matter of fact, every insurance provider has certain terms and conditions it follows when making a decision on your claim application. If you fulfill the criteria, the company will proceed with the reimbursement. But there are a few things that you can do to prevent the rejection of your car insurance claim.
- Do not increase the consequential loss
When you try to drive your car even after the damage, it is known as consequential loss. you happen to submit false evidence regarding the incident. As explained earlier, the insurer will inspect the incident through various means. In the end, the party with truthful and valid evidence will have their claim accepted.
For instance, if your car is suffering from water damage due to the monsoon season and you still try to start the engine. Since the water has already caused damage to the engine, you trying to start the engine can lead to the activation of the hydrostatic lock.
So, when you make a claim for this with your insurer, they will only reimburse the expenses incurred due to water damage and not the expenses related to the hydrostatic lock. Thus, a consequential loss will lead to claim rejection.
- Follow traffic safety laws
If you were in an unfortunate accident that has caused damage to your vehicle, the insurer would inspect the incident. In case the inspection reveals that you were not following the traffic safety rules, it might lead to claim rejection. The traffic safety rules are established to keep you, your vehicle, and people safe.
Having no driving licence can also lead to claim rejection. So, ensure that you have all the necessary documents on you at all times when driving on Indian roads.
- Do not repair the damage without informing the insurer
Do not repair the damage incurred in an accident without informing your insurer first. This is like a textbook rule to follow when the insured vehicle is involved in an accident. After the insurer is informed with the incident, they will inspect the vehicle and give an approx. an estimate of the expenses.
If you fail to inform your insurer regarding the damage before repairing it, you might not receive the compensation for the same. they will only reimburse the expenses incurred due to water damage and not the expenses related to the hydrostatic lock. Thus, a consequential loss will lead to claim rejection.
- Be honest
When multiple parties are involved in an accident, the one with a valid claim is honored. Your claim can be rejected if you happen to submit false evidence regarding the incident. As explained earlier, the insurer will inspect the incident through various means. In the end, the party with truthful and valid evidence will have their claim accepted.
- Renew your car insurance on time
It would help if you renewed your car insurance policy in due time. All the claims made on an expired policy will be rejected. Also, when you review your car insurance plan when renewing and choose the right coverage. Knowing the difference between a third party and comprehensive insurance will help you choose the right coverage for your needs.
To Sum It Up!
Car insurance claims can be tricky, but if you are honest and have all the right documents to provide as evidence, the chances of your claim rejection are low.