Seven Reasons Why Car Insurance Providers Reject Your Claim

Things You Need to Know Before Buying Car,House, Health & Life Insurance online.

Insurance Buying Tips #1: Shop smart
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
Insurance Buying Tips #2: Look for discounts
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
Insurance Buying Tips #3: Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

We all love our cars and are very much careful about maintaining those too. This is why when it comes to investing in a car insurance policy to safeguard our much-loved coupe we usually don't compromise on it, no matter how much its value is. However, there are times when car insurance claims get denied by the insurer owing to plenty of reasons.

Thus, before buying your car insurance policy you must also know that not all claims are reimbursed. The comprehensive car insurance policy only covers accident, collision, theft, damage due to natural calamities and third party liability. Other damages caused due to wear & tear, breakdown etc. are not covered under this insurance.

Listed below are the seven common mistakes that you may make after which your car insurance claim can be rejected:

Insurance Buying Tips #4: Purchase life insurance—you aren’t too young
Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
Insurance Buying Tips #5: Talk to an independent agent
An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living
You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.
  1. The most common mistake that most people commit is that when their car is damaged due to some mishap they first get their car repaired themselves and then inform the insurer about the expense. As a result the insurance company is unable to trace the damage on the car by the accident and correspondingly rejects the claim. To avoid any such situation, you must always inform the insurer about the accident first, so that authorized personnel can come and inspect the damage, estimate the cost of damage and then help you get the best reimbursement deal.
  2. Buying used car is the new fad in India nowadays. But while buying a second-hand car if you miss transferring your name in the policy copy, you claim will be rejected. Also, remember that the insurance is by the name of its first owner, therefore this transfer of name is an important criterion to follow after you buy your car.
  3. You need to notify about the claim within 48 to 72 hours. If you fail to do so, the insurance company will in most likelihood reject your claim. Also, if the engine of your car has been damaged in an accident, and u are still driving the car, thereby adding to the damage, the insurer will not cover those damages at all.
  4. A car parked in a no parking zone or loaded with more passengers than the seating capacity can also be a factor of claim rejection by the insurance company.
  5. If you have reserved your car as a private vehicle and if your car is used for commercial purpose like for loading goods etc., then it will definitely lead to claim rejection.
  6. The driver driving the insured car at the time of the accident should have a valid driving license. In addition, if it is proven that the driver was under the influence of alcohol or drugs, it may lead to claim rejection straightaway.
  7. If you have installed a CNG/LPG kit in your car and have not informed the insurer about these changes while buying the policy, your claim will be rejected, no matter whether the damage is related to the kit or not.

Buying a car insurance policy is a must but a little negligence can get you in major financial crisis in no time. Therefore, it is always advised to buy the most comprehensive policy you can have for your vehicle, and also to keep all of its conditions memorized at all times can save you a lot of time, hassle and money.

Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover
Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.
Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier
here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.
Insurance Buying Tips #9: Review your insurance needs on a yearly basis
As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.
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