8 Reasons Why your Car Insurance Claim Could Be Denied
All drivers in the UAE are required to have car insurance as it is mandatory by law. Each insurance policy has to cover at least third party damages and more than 60% of the drivers hold comprehensive insurance policy which covers own property damages as well. Buying the right insurance policy is quite essential as it covers your legal, financial, and accidental liabilities by providing the insurance coverage in the event of vehicle damage or injuries to the third party. Also, it is very important to aware of the common reasons why car insurance companies in the UAE would reject claims.
In this article, we have listed the top 8 reasons that will tell you why your car insurance claims can be denied:
Disobeying the Traffic Rules
Breaking traffic rules and regulations do not only put you in danger with the road traffic authority but also with your car insurer. Committing a misdemeanour like driving under the influence of alcohol or driving a vehicle with a suspended driving license could give your insurance provider a strong reason to reject your claim. Not only can accidents caused by irresponsible drivers lead to large fines but also he/she may have to face imprisonment for up to 3 months. Also, this wrongdoing will leave a bad impact on a driver’s record, making it hard or very expensive to buy car insurance in the future.
Providing Incomplete Details
Providing false details in order to get a lower premium on your car insurance is never a good idea. In fact, it can burn a hole in your pocket. For example, declaring a wrong model or type, inappropriately stating that the driver has not caused an accident in recent years etc. All of these declarations will be cross-checked at the time of making a claim. And every car insurance provider has a right to reject a claim if any information about the car and the driver are found to be incorrect.
It is very important to keep your car insurer in the loop if you’re planning to modify your car so you will know what the coverage extended to, and what might be excluded outright. If you don’t inform the car insurance company about any of the modifications you have done in your car that affects its safety, performance or value then it can also be the reason behind your claim rejection. That is why it is better to keep your car insurer pre-informed about all the modifications and changes you have done in your car.
Leaving your Car Door Unlocked
Leaving your car door unlocked can be a costly mistake. Most of the car owners don’t know but leaving your car unlocked does not only put your car at great risk of being stolen but also it may be the reason for your insurance claim is terminated. If it is found that the car was vandalized or stolen after being left unlocked then your car insurance company can decline to pay for the loss. Also, they have a full right to reject your insurance claim.
Using Your Vehicle For The Business Related Work
There is a disclaimer given in all of the car insurance policies that the coverage is limited to only for policyholder’s personal use of the vehicle. However, you may also check it out at the time of confirming the policy application. So, if in case you are found to use your car for any kind of business related work such as transporting passengers or delivering some items then your car insurance claim could be denied.
Every insurance policy has its certain limits and even if you are covered for some particular risk, the car insurer will not pay for the full loss if a limit that has been mentioned in the policy is exceeded. For example, rental car cover and key replacement typically will be covered once during the term of the policy.
Time is Money
If you met with an accident then it is advised to claim the damage from your car insurance company as soon as possible. Since some car insurance policies have clauses that give the full right to the insurer to reject a claim if it was not reported in a particular time period. So, make sure you claim on the right time so that it could not be denied.
Loaning out your car
Only car owners and named drivers in your insurance policy should be the ones using the car. Thus, loaning out your car to the third person could be the reason behind the rejection of your claim. And In case the car is involved in an accident while being driven by the third person then the car insurer will not pay for any loss or damage. In addition to this, as a punishment for intentionally allowing your car to be driven by the third party, your insurance policy could also be cancelled.
These are some of the main reasons why insurance companies can reject your claim. For more details, you can check online car insurance claims and know more about them and the reason behind their rejection.