If you have a car, chances are that you are have taken out vehicle insurance. In most cases it is to cover you in the event of an accident or theft. If you are still paying off your vehicle, you would have been required to take out insurance as part of your loan.
But having a policy in place that you pay every month does not mean you will automatically receive a payout when you submit a claim. In fact, many motorists are caught by surprise when their insurance claims are partially or completely rejected.
LawForAll lists some of the reasons why your claim could be rejected, and how, says, “the law is on your side should you feel as though you are treated unjustly by the Insurers”.
6 reasons why your car insurance claim could be rejected: Info by LawForAll
1. You have unpaid premiums
If you neglect to pay your premiums regularly (and on time) the insurance company will cancel your policy and you will be left without cover.
2. An unlicensed or unspecified driver is behind the wheel.
Usually, policies only cover the owner or regular driver of the vehicle. Moreover, if an unlicensed driver is driving your car and is involved in an accident, your claim will be rejected.
3. Your vehicle is not roadworthy.
A mechanical issue such as your indicators not working could result in your claim being denied if you’re in a crash. So be sure to have your car checked regularly.
4. You were driving recklessly.
It’s is very common for insurance policies to include Failure to Take and Breach of Road Traffic Regulations clauses. The former means your insurer has the right to dismiss your claim if you were a hazard on the road, while the latter indicates that if you were breaking a road rule that resulted in an accident, i.e you were speeding or driving under the influence, you wouldn't get any compensation from the insurance company.
5. Write-off cover is not included in your policy.
If this isn’t specified in your agreement, you won’t be entitled to claim if you write your car off.
6. Alarms, general security measures and tracking devices not fitted.
Most insurance companies only pay out if you have these preventive devices installed in your vehicle. Also, if you have stated that your car is parked in a secure space at night, but it comes to light that you in fact park on the street, for example, you won’t receive a payout should it be stolen or broken into. Many insurers will also insist that you install a tracking device into your car for added peace of mind.