Common Reasons for Car Insurance Claim Rejections
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1
Invalid or Expired Policy: Ensure you renew your car insurance before its expiry or within the grace period. With an expired policy, you cannot claim for damage repair.
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2
Policy Under Someone Else’s Name: If the name of a claimant and the name of the policyholder are different, a claim may be rejected. This generally happens in the case of used cars, so ensure that you transfer the name on your policy documents.
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3
Uninformed Repairs: In the event of an accident, you must inform your insurer to make a successful car insurance cashless claim settlement. An entirely uninformed repair may lead to denial at a later stage.
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4
Personal to Commercial Use and Vice Versa: Using a private vehicle for commercial reasons and vice versa leads to violation of policy terms. Hence, a claim for damage sustained for such reasons leads to a claim denial.
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5
Exaggerated Claims: If a car insurance policyholder makes an exaggerated claim whose description does not match the sustained damage, an insurer may reject that claim.
