Car insurance providers take claims processing seriously. Not because you filed a claim and submitted the necessary proof of supporting documents does it mean that they’ll go ahead and cut you a check right then and there.
Evert claim is reviewed to make sure they are not wasting resources by paying invalid payments.
Common Reasons Your Insurance Claim Can Be Denied
While no quality insurer will deny claims to save money, claims rejection happens. And more often than not, the reasons for the denial are clearly stated in the policy document that the policyholder failed to understand.
Here are the commonly known reasons why your car insurance claim can be denied.
- Fraudulent claims have been made in the past.
- Policyholder files excessive claims.
- The reason for the claim is part of the coverage that the policyholder didn’t purchase.
- The reason for the claim is part of the policy’s exclusions.
- Failure to pay insurance premiums, causing the coverage to lapse.
- Committing DUI offenses when the incident occurred.
- The accident happened while the insured vehicle was driven by someone not listed on the policy.
- Paid claims in the past have already exhausted the coverage limits.
- The policyholder is found to be at fault, partially or entirely, for the collision.
- Insufficient proof of documentation.
- The claim was not filed correctly.
- The claim was not filed on time.
- Missing receipts and invoices.
- Damage or loss could have been prevented, but policyholder was found negligent.
- Providing inaccurate or false information.
- The accident cannot be proven.
- Filing an excessive claim amount.
- The insured did not seek medical treatment immediately; hence, nothing supports the claim for injuries.
- A police report and FIR were not filed in case of theft, riot, or vandalism.
A claim may get denied by merely waiting too long before you file it. To avoid the consequences that follow, make sure that every claim you file is valid and that it is submitted within the allowed time.