Many people believe that car insurance is just another scam invented by clever people to persuade you into parting with your hard-earned cash, with the promise of “being covered.”
When the time comes to claim for an accident or theft, the insurance company will try everything to prevent your payout.
In this article, we’ll go through some reasons why your car insurance claim would be repudiated.
Know What You’re Covered For
The number one reason that people think that car insurance is a scam is that they don’t know what their cover entails.
Third-party cover, accident benefits, and direct compensation property damage coverage are mandatory inclusions in car insurance policies.
There are certain elements that add value to your policy should you add them. You can choose the comprehensive cover, which will protect you against fire, theft, water damage, and vandalism.
You might like to add a waiver of depreciation, which will reimburse you for the full amount if your car is a write-off. This one is convenient if you insure a brand new car.
Make sure that you understand exactly how your car insurance is structured so you don’t have a problem when you need to claim.
You should claim for vandalism on your vehicle; however, your policy doesn’t include that coverage. Make sure that you’re not the one that is at fault.
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Reasons to Reject Claims
Let’s say you’re aware of your policy and how it was structured, but the insurer still didn’t want to pay your claim.
Here are a few reasons why they can still deny your claim:
Payment History
We understand that lockdowns in various countries around the world caused us all to tighten the proverbial belt.
If your insurance premium is unpaid and you need to claim for accident damage or theft, the insurer has full right to reject your claim.
Make sure that your premium is up to date and paid.
Outdated Information
Look, we know life gets busy. When things get frantic, our insurance isn’t necessarily the first thing that comes to mind.
Forgetting to update your information could cause you issues when the time to claim arrives.
Notify your insurer promptly about any change that has occurred that could affect your insurance. Any address changes, modifications to your vehicle, and people in your household who are old enough to use the vehicle are all reasons to give your insurance company notice.
It’s better to give honest information to your insurer than get a nasty surprise when you make a claim.
Wrong Use of Your Vehicle
That might sound strange at first listen, but hear us out on this one.
Every now and then, you might use your truck to load goods and deliver them to people for remuneration. We’re not judging; you need to make ends meet.
Your insurer, however, will judge you. And the judgment will be a denied claim if you’re involved in an accident.
If you tell them that you’ll be using your truck exclusively for personal use, you won’t be covered if you’re doing commercial-type activities with that vehicle.
Don’t say you weren’t warned.
Conclusion
Car insurance is a valuable tool in your personal life and budget. It isn’t a scam, and people that claim that it is were bitten in the past because of their own misinterpretation of their coverage.
Of course, everyone makes mistakes, and there is recourse if you were wrongfully repudiated. These are very rare, though.
Don’t leave home without insurance. Don’t get into your car without car insurance.
It’s an amazing instrument and can benefit you greatly when the need arises.
Be sure that you know what you’re covered for and keep paying those premiums.
