When Can a Car Insurance Claim is Rejected

Car Insurance Claim

When your car suffers through an accident and you face material damages, it is a tough time to deal with. During such situation, car insurance policy is the only hope. But, what if your car insurance claim gets rejected? This can be really hard time to handle but, the policyholder should not lose his/her patience and try to look at the details of the decision made by the insurance company. Sometimes rejection of an insurance claim can be a confusion or doubt.




This nowhere indicates the dishonesty of the insurance firm or end of all your hopes to get the recovery money as per your insurance claims.

To confirm the receiving of car insurance benefits, you need to look for reasons behind the denial of the entitlement for coverage. Major ones are mentioned below:

Having no coverage for what particular damage your car has gone through is a reason behind claim rejection. If your car is covered only under liability insurance and you have filed for collision coverage, then the claim will be automatically rejected.

Filing for uninsured motorist claim under your plan and other party turns out to be insured.

If you don’t qualify to the terms & conditions of insurance policy, the company holds right to reject the claim.

Lapse of your policy because of nonpayment even after declaration of grace period.

If the amount of damage cover exceeds your policy limits, then the insurance firm is not liable to pay for excess expense.

Damages occurred to the car under the influence of alcohol are not covered in the insurance policy.

If you own a second hand car and have not transferred insurance on your name, your claim would be rejected.

In any case, if you provide wrong information, your claim would be rejected.

If the car driver found unlicensed during accident, the insurance company is not liable to pay the insurance amount.

The cars bought for personal purpose and being used for commercial purpose have their insurance claims rejected.

Accident intimation delay can also be one of the major reasons behind rejection of insurance application.

If your policy doesn’t lack any aforementioned point, then you have a reason to dispute the decision of insurance company and file the coverage claim again.