The whole point of car insurance is to protect you against the unforeseen costs of driving a vehicle on the road, so the last thing you want is for your claim to be rejected. And yet it happens all the time. Scorpion looks at what can cause claim rejections and how to avoid this.
Vehicle Modifications
It might make your ride look, sound or perform better, but vehicle modifications can be risky when it comes to insurance and could get your claim rejected – especially if you did not inform your insurer. The insurance provider might see specific alterations as increasing the likelihood of accidents or theft, or as enhancements that could raise the overall value of your vehicle, resulting in higher replacement costs. If you want to do these, always chat to your insurer first.
Allowing Uninsured Individuals to Drive Your Vehicle
Insurance typically only covers listed drivers or those with explicit permission. In the event of an accident, an uninsured driver could jeopardise your claim's approval. If your car is still under finance, not only will your claim be rejected but you will also have to continue paying your monthly vehicle finance instalments until your car is paid off. You may also be liable for damage caused to the other vehicle that was involved in the accident if the individual driving your car was in the wrong.
Using Your Vehicle for Business-Related Activities
Most policies exclude coverage for commercial purposes. Using your car for business purposes without appropriate coverage might result in denied claims. You might be tempted to start a side hustle, but run this past your insurer first to ensure you’re still covered.
Honesty and Disclosure
You may pay for it in the long run if you need to claim for something and your insurer finds out you were not honest or did not disclose important details. This includes past accidents, change of residential address, change of daytime parking address, moving from working offsite to working permanently onsite (especially if your premiums were adjusted to accommodate the fact that you were not driving to work daily). Always ensure that your insurer has accurate, current, and complete information.
Inconsistent Payment of Your Premiums
Pay your insurance premiums every month and avoiding skipping premiums. Late or missed payments can lead to policy lapses, rendering you uninsured and potentially causing claim rejections.
Driving Under the Influence
Not driving while drunk isn’t just better for keeping you alive, it’s also better for maintaining your insurance cover. Besides being against the law, it also invalidates insurance cover. Accidents occurring while intoxicated could lead to denied claims, legal problems, and increased premiums.
Not Performing Regular Maintenance
Skipping routine vehicle maintenance like regular services and repairs might lead to rejected claims if the insurer’s assessment report shows that your vehicle had problems like worn-out tyres, malfunctioning wipers, or worn-out brakes which could have contributed to the accident.
Don’t want rejected claims from your vehicle insurer? Make sure you comply with their terms and conditions. Scorpion Legal Protection has a specialist insurance department that offers advice to members on how to avoid having their insurance claims rejected, and can assist members who believe that their claims have been unfairly rejected.
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*This is only basic legal advice and cannot be relied on solely. The information is correct at the time of being sent to publishing.