Car insurance claims can be rejected for several reasons, including:
- Non-Disclosure or Misrepresentation: If the policyholder fails to disclose important information or provides false details when purchasing the policy, such as details about the car’s condition, previous accidents, or driving history, the insurer may reject the claim.
- Driving Under the Influence (DUI): If the driver was under the influence of alcohol or drugs at the time of the accident, the insurance company may deny the claim, as most policies exclude coverage for incidents involving impaired driving.
- Excluded Drivers: If the person driving the vehicle at the time of the accident isn’t listed on the policy or isn’t authorized to drive the car (e.g., driving without a valid driver’s license), the claim may be rejected.
- Unapproved Modifications: If the car has been modified in a way that increases the risk (e.g., performance modifications), and these modifications were not disclosed to the insurer, the claim could be denied.
- Expired Policy: If the car insurance policy has expired or was canceled before the incident occurred, the insurer is not obligated to honor the claim.
- Failure to Report the Accident: Not reporting the accident in the time frame specified by the insurer or not following proper procedures after an accident (like failing to file a police report when required) can lead to a claim being rejected.
- Policy Exclusions: Every car insurance policy has exclusions (e.g., damage from natural disasters, wear and tear, or using the car for commercial purposes). If the claim falls under one of these exclusions, it may be rejected.
- Lack of Sufficient Evidence: If there is insufficient evidence to support the claim, such as a lack of a police report or unclear details about the accident, the insurer may deny the claim.
To avoid rejection, it's important to read and understand your policy, report accidents promptly, and provide accurate and complete information to your insurer.
https://www.1life.co.za/blog/car-insurance-rejected