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A first-timers manual to avoid Car Insurance Claim rejections

Buying a car for the first time is a milestone moment in a person’s life. It brings about an overwhelming sense of accomplishment in a person’s life and is undoubtedly an unforgettable juncture. Your beloved car means so much to you that you protect it with the best insurance policy to the best of your knowledge. Sure-shot way to avoid an eyesore caused by a scratch or dent! Isn’t it? However, in spite of being prudent enough to safeguard your baby, it is quite likely that after an unfortunate event of an accident or theft your car insurance claim is rejected by the insurance company. This fiasco of a situation can be avoided if we clear a few of our misconceptions surrounding Car Insurance. Therefore, the following is a list of scenarios to avoid in order to ensure that our car insurance claim is never rejected:

  1. Driving without a valid license:Ensure you carry your driving license every time you take your car for a spin. If you are found to be without your driving licenseat the time of the accident then your claim will certainly be rejected. Be smart and keep your license in the car itself.
  2. Repairing your car without notifying the insurer:This is a common mistake that most people are guilty of making. They rush the repairs and inform their insurer late oblivious to the fact that their claim might be rejected because of this reason.  The insurance company needs to be informed before the repairs begin so they could send their representative to inspect theextent of the damage, estimate the cost of the repairs, and help you out with finding the best deal. All of this is not possible if the insurer is informed post-repairs. The insurance company has no way of tracing back the condition of the car and this gives them a reason to reject your claim.
  3. Insurer is informed late:What if your car goes through an accident and you decide to repair it after a month.  Once you have made up your mind you inform your insurance company. Will they honor your claim? No chance. This is because you need to intimate the insurer within 48-72 hours of the incident taking place. If you fail to do so your claim will be rejected.
  4. Car modifications not intimated to the insurer:In case you have installed a LPG/CNG kit to your car, you need to inform your insurer and if possible get the kit insured as well. If you fail to do so your claim will be rejected regardless of the part that is damaged.
  5. Using your car commercially:If your car is registered as a Private vehicle and you are using it commercially to carry goods or passenger then your claim will be rejected.
  6. Policy is not in your name:If you own a second-hand car then you need to transfer its insurance policy in your name. Otherwise, your claim will not be entertained. In addition, if there are any typos in your policy document then get them corrected beforehand. It could lead to a claim rejection.
  7. Not following guidelines:In case you fail to follow any traffic law such as park your car in a no parking zone, drive under the influence of alcohol, drugs etc then your claim is bound to be rejected. Even manufacturer guidelines such as not overloading the vehicle over a certain limit of passengers needs to be followed to avoid claim rejections.

Insurance companies appreciate it if you are diligent and cautious rather than reckless and fickle. Hence, ensure you avoid these reasons at all costs and enjoy a smooth and seam-less claim process.