Five main reasons why your car insurance claim gets rejected
Each year 43 000 claims made to car insurers are either partly or fully rejected because of policy exclusions or a breach of conditions.
Jeff Osborne, Head of Automotive for Gumtree SA, says: “Not knowing exactly what your monthly premium covers is dangerous and can be costly”.
To avoid your accident claim being rejected, meticulously go through your contract before signing on the dotted line, warns Osborne: “this attention to detail will save you time, money and a lot of frustration”.
Also read: 10 terms you need to know about vehicle finance and insurance!
He says there are many reasons why claims get knocked back by insurers but the five main ones are:
- An unlicensed driver was behind the wheel.
Letting others drive your car is your choice. But if they’re involved in any accidents while behind the wheel and do not hold a valid driver’s license, your insurer will not cover the cost of the damages.
- The vehicle wasn’t covered for a write-off.
If you are victim of an extremely bad accident and your car is a write-off, your insurer will only be liable if write-off cover is explicitly stated in your contract.
- The vehicle has not been roadworthy approved.
Your wipers seem minor things but are an integral part of roadworthy requirements. If you are in an accident and it was caused by vision being obscured due to wipers not working properly, the insurer can kick your claim to the kerb.
- The vehicle inspection was not conducted.
When opting for a car cover, the insurance company needs to inspect the car. If this inspection is not completed, the insurer will not be able to validate your claim for anything.
- One too many after-work drinks.
If it is discovered that alcohol was the cause of an accident, any related claim will automatically be rejected. Do not drink and drive.
Source: Gumtree SA