What are the main reasons an insurance provider would reject my car insurance claim?
I just got new car insurance with 1st For Women and I just want to make sure I have everything sorted, so that they can't screw me out of a claim when the time comes from a technicality..
My insurance claim was rejected because Outsurance said that I signed my policy document without having the correct details on there. Something was wrong on my policy document and they said because I signed it without making sure it was correct I was in the wrong even if their agent got the details wrong on the phone. My warning to everyone is to check what they say in the contract before signing it it will save you some much hassle when it comes to claims, trust me you don't want to go through what I did
- Unlicensed driver.
- Unroadworthy vehicle. If you have an accident and your insurer finds out your wipers didn’t work or your tyres were smooth, your claim could be rejected on the basis of your car being in an unroadworthy state.
- Reckless driving. Watch out for the “Failure to take care” clause, Jooste says. “This refers to recklessness, which is not to be confused with negligence.” Also look out for a “Breach of road traffic regulations” clause. If you were exceeding the speed limit at the time of an accident, your claim could be rejected.
- Drunk driving.
- Driver not the “regular driver”. Some policies cover the regular driver only. Others cover a named driver or any licensed driver. Jooste says misrepresentation by policyholders in this instance is common. Since young drivers pay higher premiums because of the risk they pose to the insurer, they may list a parent as the regular driver. When it is revealed that this isn’t true, the claim may be repudiated.
- Total-loss policy.This cover applies only when the insurer deems your vehicle to be a total write-off. Sometimes policyholders have this type of cover and only realise it when their claim is rejected, Jooste says
- Telematics data shows driver fault. Telematics is technology that can be used to track and recover your vehicle if it is stolen, and/or monitor your driving behaviour. Jooste says that some insurers insist on you fitting a telematics device to your vehicle. “The data gleaned from a telematics device can show a breach of speed limit or reckless driving leading up to an accident, which can result in your claim being rejected – and it is difficult to dispute the evidence,” he says. But some insurers use telematics to reward good driving. In other words, telematics can be used as a carrot or a stick. “Make sure you know how the insurer is going to use this information,” Jooste says.
- Tracker device not fitted. Jooste says that if your cover is conditional on your car being fitted with a satellite tracking device, your claim will “probably” be rejected if you fail to comply with this condition.
- Vehicle inspection not carried out. Jooste says some insurers insist on inspecting your vehicle at inception of the policy. This is so that there can be no disputes about pre-existing damage to the vehicle. If you neglect to comply, you will be in breach of your contract and can have your claim rejected.
- Material non-disclosure at underwriting stage. Jooste says your claims record, a break in insurance cover, prior applications for cover being rejected, and judgments on your credit record are all material to the assessment of your risk, and it is imperative that you disclose such information. For example, people with a bad credit record have a higher propensity to file fraudulent claims than people with a clean credit record, he says. “If you lie and it comes out later, your claim may be rejected.”
- Vehicle used for business.If you plan to use your vehicle for business, you need to disclose this to your insurer. “In my experience, insurers are very reasonable about this, and don’t look to load your premium if you seldom use your vehicle for this reason.
- Vehicle not parked securely at night.If you state that your car is parked securely – in a garage or off the street – at night, and, in the event of theft, it is found it was regularly in the street, your claim could be rejected.
- Security device not fitted. If you’re required to have your car fitted with an alarm or a gear lock and you don’t comply, your claim can be rejected.I saw this on Personal Finance: https://www.iol.co.za/personal-finance/top-20-reasons-your-insurance-claims-get-rejected-1557024