Start Saving Money on Insurance Policy

Compare Life, Health, Car and Two wheeler Insurance rates from top Insurance companies for free.

1,000+ Reviews
Been Here Before?
Get Back to My Quotes

Why Car Insurance Policy Gets Rejected?

The motor vehicle is considered as one of the biggest assets they own. Car insurance policy ensures to protect your valuable vehicle against all odds like collision, robbery, damage due to accidents, natural calamities, and third-party claims.

On What Grounds Does Your Car Insurance Policy Gets Rejected

Rejection of car insurance claims is frequent; these rejections are due to policyholder mistakes or negligence because the insurer needs a genuine reason to reject your insurance policy.

Some of the reasons mentioned below why your car insurance policy gets rejected by insurance companies

Influence of alcohol

Insurer rejects your claim in drunk and drives case if the vehicle is involved in a car accident where a driver is under the influence of alcohol. Here, the insurer rejects the claim, the driver's primary safety precaution is to avoid alcohol while driving.

Drunk driving is a legal offense and it will lead you to criminal processing. Driving under the influence of alcohol, driving without a valid license, etc is not covered under the insurance plan.

Any third-party insurance policy will not cover the damages or losses that occurred as a result of a direct violation of traffic rules.

Fraudulent claim

Filing for any claims should adhere to the right documents to evade any legal consequences of fraud. Guilty of fraudulent claim not only lapse your policy but is also liable personally.

The best car insurance company investigates the claim before proceeding on claim settlement. They check all the claims information that you provided about your car damage. So please avoid false claims it leads to legal consequences of fraud.

Negligence led to the theft

Loss or damage to the vehicle due to the negligence of the policyholder, an insurer will reject your policy on grounds of negligence. You should take proper precautions to safeguard your vehicle against all odds, this is the primary duty of a policyholder.

Any type of negligence that gives to the events of consequential losses will not be covered under an insurance policy. The best insurance company also will not cover consequential losses to a car. The claim arising in such a situation will not be paid.

Modification

Making modifications to your vehicle by enhancing engine power, wheel alignment and vehicle look without any prior intimation to the insurer. Your insurance policy is void and you can’t claim damages if any.

When you took the motor insurance, you made some statements on car condition like engine capacity, alloys, etc. This is what the policy will cover for you. But after some time, you got an upgrade in the car engine and did not inform the same to the insurance company.

So, if you meet an accident, the insurance company has the complete right to reject the claim on the grounds of unnoticed car modifications.

Using private vehicles as commercial Purposes

The insurance claim is rejected if you use a private vehicle for commercial use. Using a private vehicle as a cab or goods carrier will lapse your policy, a commercial vehicle has a separate insurance policy to claim for damages legally.

Renew car insurance on time

Car insurance renewal is plays important role in claim settlement. You cannot raise a claim if your vehicle insurance policy is expired or lapsed. So you have to renew your car insurance on time to get claims. The claim amount depends on the premium you pay for car insurance.

Delay in claim Report

There is a deadline for claim report submission. If you raise a claim about the accident and associated losses after the time they have given. It also may lead to disapproval of the claim.

If by any chance, you take more than the predefined time to make a claim intimation, there are chances of the insurance company your claim will be rejected.

Transfer insurance copy for a used vehicle

Transfer insurance policy in your name for a used vehicle, if not, your claim will be rejected.

Driving without a valid license

In case of an accident made by someone driving your vehicle without any valid license, a policyholder cannot claim any damages. Allow driving your vehicle only if they hold a valid license.

Follow Claim process

Follow the claim process to avoid rejection of your claim. The claim process is ideal for every general insurance company limited. so please read the terms and conditions and claim process and should be followed carefully.

Damage due to mechanical breakdown

Damage due to internal malfunction cannot attract insurance claims. An insurance claim is to protect you and your vehicle from external damages, if any, vehicle mechanical malfunction is not covered by an insurance claim.

Know the cases where your car insurance claim gets rejected, keenly note the required documents and procedures to avoid car insurance claim being rejected.

PolicyBachat registered corporate office provides insurance products and services. The trade logo displayed above belongs to Destination Insurance Web Aggregators private limited t&c apply.

Visit PolicyBachat and get the best car insurance quotes from the top general insurance companies and you can also check the details on risk factors terms conditions and please read the sales brochure carefully before concluding a sale. Need Help? call Policy Bachat at 1800-123-4006 or 1800-123-4003 and our insurance specialist will be there to assist you.

Recent Posts

Reviews & Overall Rating

PolicyBachat has near-perfect ratings on Google and Facebook. Here’s what our customers are saying.

PolicyBachat Rating

Dots

Start Saving Money on Insurance Policy

Compare Life, Health, Car and Two wheeler Insurance rates from top Insurance companies for free.

1,000+ Reviews
Been Here Before?
Get Back to My Quotes

Leave a rating!

0.0 (0 votes)

Please wait while your request is being processed.