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.
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 an accident where a driver is under the influence of alcohol. Here, the insurer rejects the claim, drivers primary safety precaution is to avoid alcohol while driving.
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.
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.
Using private vehicles as commercial
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.
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.
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.
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.