It can be really upsetting if your car insurance company deny your claim. It doesn’t mean that because you have car insurance, you will get paid for everytime you submit a claim. The main reason why car insurance companies may deny your claim, according to Carinfo.co.za, is to avoid fraud and to ensure that you as the insurer keep to the terms and conditions of your policy. The website gives the following 10 reasons why companies may deny an insurance claim.

  1. You have not been paying your car insurance premiums

According to Carinfo.co.za, one of the biggest reasons why car insurance companies would deny your claim is due to non-payment of your insurance premiums. Make sure you pay your premium on time every month and spare yourself the drama.

  1. The driver or car is not ‘In Order’

“Generally, an insurance policy covers a named driver (or drivers) and a certain car in a certain condition. If the driver during a car accident wasn’t the driver named in your policy, then your claim will be denied,” it is written on Carinfo.co.za.

The same goes for if the car you want to claim for is not named in your policy. Many policies state that the insured car must be roadworthy. It will most often be the case that there is a connection between the state of your vehicle and the cause of the accident. Don’t take the risk, put your car through a roadworthy test and ensure your safety.

  1. You neglected to disclose certain information

Always be honest when filling out an application form for vehicle insurance. The insurance company will ask a lot of questions regarding your prior insurance record, your driving record, your health and credit. Failure to do so, can result in the insurance company denying your claim, even if your monthly premiums are paid up to date.

  1. Driving recklessly

Always stick to the rules of the road and adhere to the speed limit. If your insurance company can prove that you were driving recklessly like missing a stop sign or speeding, they can deny a claim. This is called a “failure to take care” clause.

  1. Your vehicle was stolen

Even if you weren’t involved in an accident and your vehicle was stolen, there may still be some reasons why your claim would be rejected. Adequate security precautions are crucial for many insurance companies. This includes a lock up garage, among other things. If you stated that your car is locked in a garage every night and the insurance company should find out that you didn’t actually have the specific security measure in place or that you stated that you have but in fact didn’t, your insurance company may reject the claim. Having these security measures in place may also reduce your monthly premium.

  1. Total Loss Policy

A total loss policy is when the insurance company will only give a pay out if your vehicle is completely destroyed or rather beyond repair. It is not a general policy insurance meaning that the insurance will not pay for damages to your car or repairs. Make sure you read the terms and conditions of your vehicle insurance policy careful and make sure what type of cover you have.

  1. Telematics says otherwise

Most car insurance companies will demand that a telematics device is fitted into your vehicle which will record driving data. It can also prove, after an accident, if indeed you were driving safely as you thought. If the telematics device says you were not driving responsibly, the insurance company may deny your claim.

  1. Drunk driving

If you were out for a drink and were involved in a car accident, the insurance company may refuse to pay out. Being drunk doesn’t mean you have had 10 beers but rather if you failed a breathalyzer test.

  1. Driving for business, not pleasure

Be upfront with your insurance whether an insured vehicle is meant for driving for business and not for personal use. In the event that you should have an accident while driving as a business, your claim may be rejected.

  1. You’ve reached your coverage limit

According to Carinfo.co.za, a car insurance policy in general, will cover you for up to a certain amount, but that amount is a total amount. This means that should you be involved in another accident in the same year, the company can deny your claim. The reason will be that you have used all your coverage.

 

 

It can be really upsetting if your car insurance company deny your claim. It doesn’t mean that because you have car insurance, you will get paid for everytime you submit a claim. The main reason why car insurance companies may deny your claim, according to Carinfo.co.za, is to avoid fraud and to ensure that you as the insurer keep to the terms and conditions of your policy. The website gives the following 10 reasons why companies may deny an insurance claim.

  1. You have not been paying your car insurance premiums

According to Carinfo.co.za, one of the biggest reasons why car insurance companies would deny your claim is due to non-payment of your insurance premiums. Make sure you pay your premium on time every month and spare yourself the drama.

  1. The driver or car is not ‘In Order’

“Generally, an insurance policy covers a named driver (or drivers) and a certain car in a certain condition. If the driver during a car accident wasn’t the driver named in your policy, then your claim will be denied,” it is written on Carinfo.co.za.

The same goes for if the car you want to claim for is not named in your policy. Many policies state that the insured car must be roadworthy. It will most often be the case that there is a connection between the state of your vehicle and the cause of the accident. Don’t take the risk, put your car through a roadworthy test and ensure your safety.

  1. You neglected to disclose certain information

Always be honest when filling out an application form for vehicle insurance. The insurance company will ask a lot of questions regarding your prior insurance record, your driving record, your health and credit. Failure to do so, can result in the insurance company denying your claim, even if your monthly premiums are paid up to date.

  1. Driving recklessly

Always stick to the rules of the road and adhere to the speed limit. If your insurance company can prove that you were driving recklessly like missing a stop sign or speeding, they can deny a claim. This is called a “failure to take care” clause.

  1. Your vehicle was stolen

Even if you weren’t involved in an accident and your vehicle was stolen, there may still be some reasons why your claim would be rejected. Adequate security precautions are crucial for many insurance companies. This includes a lock up garage, among other things. If you stated that your car is locked in a garage every night and the insurance company should find out that you didn’t actually have the specific security measure in place or that you stated that you have but in fact didn’t, your insurance company may reject the claim. Having these security measures in place may also reduce your monthly premium.

  1. Total Loss Policy

A total loss policy is when the insurance company will only give a pay out if your vehicle is completely destroyed or rather beyond repair. It is not a general policy insurance meaning that the insurance will not pay for damages to your car or repairs. Make sure you read the terms and conditions of your vehicle insurance policy careful and make sure what type of cover you have.

  1. Telematics says otherwise

Most car insurance companies will demand that a telematics device is fitted into your vehicle which will record driving data. It can also prove, after an accident, if indeed you were driving safely as you thought. If the telematics device says you were not driving responsibly, the insurance company may deny your claim.

  1. Drunk driving

If you were out for a drink and were involved in a car accident, the insurance company may refuse to pay out. Being drunk doesn’t mean you have had 10 beers but rather if you failed a breathalyzer test.

  1. Driving for business, not pleasure

Be upfront with your insurance whether an insured vehicle is meant for driving for business and not for personal use. In the event that you should have an accident while driving as a business, your claim may be rejected.

  1. You’ve reached your coverage limit

According to Carinfo.co.za, a car insurance policy in general, will cover you for up to a certain amount, but that amount is a total amount. This means that should you be involved in another accident in the same year, the company can deny your claim. The reason will be that you have used all your coverage.

 

 

10 key insurance definitions every insurer should know and understand
December 14, 2015

Top 10 reasons car insurance companies reject claims

It can be really upsetting if your car insurance company deny your claim. It doesn’t mean that because you have car insurance, you will get paid for everytime you submit a claim. The main reason why car insurance companies may deny your claim, according to Carinfo.co.za, is to avoid fraud and to ensure that you as the insurer keep to the terms and conditions of your policy. The website gives the following 10 reasons why companies may deny an insurance claim.

  1. You have not been paying your car insurance premiums

According to Carinfo.co.za, one of the biggest reasons why car insurance companies would deny your claim is due to non-payment of your insurance premiums. Make sure you pay your premium on time every month and spare yourself the drama.

  1. The driver or car is not ‘In Order’

“Generally, an insurance policy covers a named driver (or drivers) and a certain car in a certain condition. If the driver during a car accident wasn’t the driver named in your policy, then your claim will be denied,” it is written on Carinfo.co.za.

The same goes for if the car you want to claim for is not named in your policy. Many policies state that the insured car must be roadworthy. It will most often be the case that there is a connection between the state of your vehicle and the cause of the accident. Don’t take the risk, put your car through a roadworthy test and ensure your safety.

  1. You neglected to disclose certain information

Always be honest when filling out an application form for vehicle insurance. The insurance company will ask a lot of questions regarding your prior insurance record, your driving record, your health and credit. Failure to do so, can result in the insurance company denying your claim, even if your monthly premiums are paid up to date.

  1. Driving recklessly

Always stick to the rules of the road and adhere to the speed limit. If your insurance company can prove that you were driving recklessly like missing a stop sign or speeding, they can deny a claim. This is called a “failure to take care” clause.

  1. Your vehicle was stolen

Even if you weren’t involved in an accident and your vehicle was stolen, there may still be some reasons why your claim would be rejected. Adequate security precautions are crucial for many insurance companies. This includes a lock up garage, among other things. If you stated that your car is locked in a garage every night and the insurance company should find out that you didn’t actually have the specific security measure in place or that you stated that you have but in fact didn’t, your insurance company may reject the claim. Having these security measures in place may also reduce your monthly premium.

  1. Total Loss Policy

A total loss policy is when the insurance company will only give a pay out if your vehicle is completely destroyed or rather beyond repair. It is not a general policy insurance meaning that the insurance will not pay for damages to your car or repairs. Make sure you read the terms and conditions of your vehicle insurance policy careful and make sure what type of cover you have.

  1. Telematics says otherwise

Most car insurance companies will demand that a telematics device is fitted into your vehicle which will record driving data. It can also prove, after an accident, if indeed you were driving safely as you thought. If the telematics device says you were not driving responsibly, the insurance company may deny your claim.

  1. Drunk driving

If you were out for a drink and were involved in a car accident, the insurance company may refuse to pay out. Being drunk doesn’t mean you have had 10 beers but rather if you failed a breathalyzer test.

  1. Driving for business, not pleasure

Be upfront with your insurance whether an insured vehicle is meant for driving for business and not for personal use. In the event that you should have an accident while driving as a business, your claim may be rejected.

  1. You’ve reached your coverage limit

According to Carinfo.co.za, a car insurance policy in general, will cover you for up to a certain amount, but that amount is a total amount. This means that should you be involved in another accident in the same year, the company can deny your claim. The reason will be that you have used all your coverage.

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *