WHAT ARE INSURANCE CLAIMS?
Insurance claims are formal requests made by policyholders to their insurance companies for payment or compensation for a covered loss or event. When an insured event occurs, such as an accident, illness, or property damage, the policyholder submits a claim to the insurer, detailing the incident and the amount of compensation sought. The insurance company then reviews the claim, assesses the validity of the claim based on the policy's terms and conditions, and determines the payout amount if the claim is approved. The process involves documentation, evidence submission, and often an investigation to ensure the claim is legitimate.
TWENTY-ONE REASONS THAT CAN MAKE YOU LOSE AUTO INSURANCE CLAIM
Here are twenty-one reasons that can lead to a car owner losing an insurance claim:
1. Policy Lapse.
Auto/Car Insurance claims may be denied if the insurance policy has expired or lapsed.
2. Non-Disclosure of Vital Information. Omission or failure to disclose important information, including past accidents or modifications to the car, can result in insurance claim being denied.
3. Fraudulent claims.
Submitting incorrect or overstated claims may result in quick rejection and legal implications.
4. Unlicensed driver.
If the car was driven by someone without a valid driver's license at the time of the accident, the claim may be denied.
5. Driving Under the Influence.
Claims are often refused if the motorist was intoxicated or under the influence of drugs at the time of the collision.
6. Unauthorized use
If the car was used for purposes other than those covered by the insurance (for example, commercial use for a personal vehicle), the claim may be denied.
7. Violation of Traffic Law
Breaking traffic laws, such as overspeeding or reckless driving, at the time of the accident may result in claim denial.
8. Delayed Reporting.
Timelines is key here. Not reporting an incident to your insurance provider within the specified time range may result in claim refusal.
9. Failure to Inform the Relevant Authorities.
Not completing a police report when necessary, particularly in cases of theft or major accidents, might result in a claim being denied.
10. Excluded Events.
Damages caused by occurrences excluded from the policy (for example, some natural catastrophes) will not be covered.
11. Wear and Tear.
Claims for losses caused by normal wear and tear rather than a specific occurrence are usually not covered.
12. Mechanical Failures.
Claims for mechanical or electrical problems not caused by an accident are typically not covered.
13. Unauthorized Repairs.
Conducting repairs without informing or obtaining clearance from the insurance provider may result in claim rejection.
14. Lack Of Appropriate Paperwork.
Failure to provide relevant paperwork, such as repair receipts or photographs, may result in claim denial.
15. Driving the Car for Racing.
If the car was being driven in a racing or competitive event at the time of the accident, the claim may be denied.
16. Intentional Damage.
Any damage caused by the owner, whether intentionally or with their consent, will result in claim denial.
17. Noncompliance with the Policy Terms.
Failure to follow the exact terms and circumstances mentioned in the policy may result in denial. 18. Uninsured drivers. Claims may be dismissed if the owner authorized an uninsured driver to use the car.
18. Uninsured Drivers.
Insurance claims may be dismissed if an uninsured driver was permitted to use the vehicle by the owner.
19. Unreported Modifications.
Modifications to the car that were not reported to the insurance carrier can result in a claim denial.
20. Driving Outside the Covered Area.
If the accident occurs beyond the policy's geographical coverage region, the claim may be denied.
21. Lying To Obtain Cheaper Insurance.
Lack of integrity, fraudulent or misleading records about you or your vehicle can result in higher costs.
To avoid these concerns, ensure compliance with the insurance policy's terms and conditions and maintain open communication with the insurance provider.
