Are your insurance claims rejected?
Find out why
Why are insurance claims rejected?
Car insurance is vital these days, protecting car owners from the financial dangers of theft and accidental damage. In fact, comprehensive insurance is actually compulsory if you finance your vehicle, so that the financial institution's investment is protected.
But there are occasions when your insurance provider can reject a claim. Here are some reasons why they can reject a claim, and how to avoid this:
- Expired licenses: If your driver's license or your car's annual license have expired, your insurer will be within their rights to reject a claim.
- No license: If you don't have a driver's license, or someone without a license was driving the car when it was in an accident, your insurer can reject your claim.
- Unpaid premiums: Insurance companies can decide that you have suspended your cover if you don't pay your premiums on time, in which case you won't be covered.
- Not roadworthy: By driving an unroadworthy car, you are breaking the law and so won't be covered in the event of an accident. And be careful: even a cracked windscreen or faulty windscreen wipers can make the car unroadworthy.
- Breaking the law: If you drive recklessly, break the speed limit or are driving under the influence, you are voiding your insurance cover. Any accident damage sustained while doing this will not be covered.
- Negligence: You need to look after your vehicle, which means that you should lock it and not leave the keys where they can be easily stolen. If you can't produce the car keys in the event of a theft claim, your claim may be rejected.
- Dishonesty: Be honest when dealing with your insurance company or it could come back to bite you. When signing up, tell them of previous accidents or thefts, and in the event of damage, be honest in what transpired. Any uncovered fraud can lead to claims being rejected.
- Waiting periods: There might be a waiting period after you sign up for insurance, during which you are not covered.
- Unspecified driver: Some policies will specify the driver/s who can drive the car and be insured. So if you lend your car to a friend and they crash it, it might not be covered.
- No security device: If you say your car is fitted with a tracker and it actually isn't, or if you can't prove that it was, a theft claim could be rejected.
- Using your car for business: If your car is insured for personal use only, and it turns out you were actually using it for business, such as operating as an Uber or delivery driver, your vehicle won't be covered while you are operating it for profit.
- Vehicle modification: Insurance companies insure a car as it came from the factory, unless informed of modifications. If you soup up the engine or even fit bigger wheels, let your insurance company know so that they are aware and can modify your policy. Not doing so risks claim rejection down the road.
- The take-home advice is to be aware of the fine print of your insurance policy, and to adhere to it. If you feel you have had a claim unfairly rejected, you can take your case to the Insurance Ombudsman but that isn't a quick or easy solution to something that could have been avoided in the first place.
- Toyota Financial Services offers MyToyota Insurance, which is as reliable as the car you drive with repairs done by accredited repairers, using genuine Toyota parts. It offers the great insurance cover as well as the following benefits and features:
- Repairs done by Toyota accredited repairers;
- Cover for accidental damage, theft and hi-jacking and 3rd party liability;
- Cover for hail damage;
- Cover for your windscreen and factory fitted sound system and accessories;
- Assist services including; Road Assist, Home Assist, Medical Assist, Trauma Assist, Legal Assist and Towing and Storage Assist;
- Vehicle repatriation and SASRIA included.