Image Credit: Sebastian Herrman | Unsplash
You just don’t get it – you’ve followed your insurer’s instructions to a T, signed all the necessary reports, and yet, your claim has been shockingly and utterly… Denied. If you find yourself overwhelmingly confused, don’t lose your marbles just yet. Here are 8 possible reasons why your car insurance claim has been denied:
1. You failed to submit your claim within 24 hours
It’s really simple – In the 24 hours following your accident, you need to submit your NRIC, copy of your driver’s license, and well-documented evidence.
If you’re unsure if you’ve submitted all the necessary documents, call your insurer to find out instead of procrastinating. Various insurers such as AXA and NTUC Income own emergency hotlines, so there’s no excuse to jeopardise your No Claims Discount and insurance plan by dilly-dallying.
2. You’ve admitted liability
If you’ve negotiated, offered settlements, or admitted liability to the third party involved in your car accident, your statements and actions can be used against you when it comes to processing your claims. Never, ever admit liability during an accident. Instead, leave it to your insurer to decide if you should get fairly compensated.
3. You gave false information or withheld information
Any crucial information that you choose not to admit could largely hinder your claims process. When purchasing your policy, it’s important, to be honest with your insurer about, say, any medical conditions or prior accidents you might have had.
You also want to tell the truth about the usage of your vehicle, and who the main driver is. Lying about the main driver of your vehicle is considered to be fraud, and would inevitably result in your claims being denied.
4. You’ve got unpaid premiums
If you’ve got unpaid premiums, your insurer will deny your claim, and reasonably so. This is why many car insurance providers recommend paying your car insurance in full – Accidents happen so randomly and could occur within just the first few days of your payment plan.
5. You’ve been deemed negligent or liable
No insurer doles out claims before a thorough and detailed evaluation, so if your insurance provider has come to the conclusion that you’re highly liable for your accident, your claim might be denied. After all, your insurance policy only protects you in cases where an accident has happened beyond your control.
6. You’ve got no coverage
Not all insurance policies are made equal, and this is evident in the varying costs of premiums. If your insurance policy does not cover the specific damage or losses you’ve incurred, don’t expect to get your claims.
For example, if you’ve opted out of your Personal Effects coverage, and your iPad gets stolen from your car, we’re sorry, but you’ll have to cover the losses on your own. Other types of coverage that you might not have in your policy are:
- Catastrophic events (eg. war, explosions)
- Intentional cause of injury or damage to property (eg. road rage, crashing into your arch enemy’s fence)
- Use of the vehicle outside its specified class (eg. using a car that’s declared for domestic uses for business)
- Vehicular exclusion (where certain types of vehicles such as race cars and other high-risk vehicles require a non-regular policy)
7. You’ve proffered too little, or low-quality evidence
If you don’t already have cameras installed in your car, it’s crucial that you take copious amounts of quality photos and videos of your accident. Insufficient or low-quality photos could prevent you from getting your claims through.
The above said, why haven’t you invested in a dash cam? It’s a small price to pay for peace of mind, and a crucial tool should you bump into potential trouble.
8. You visited an unauthorized workshop
Every insurer has a list of authorized workshops that their policyholders can get their vehicles repaired at. If you’ve used an unauthorized workshop to service your car, you might find yourself footing the entire bill, as insurers have no way of trusting that they have not been overcharged.
While it is not impossible to make a claim after going to an unauthorized workshop, it definitely could complicate things, and your insurer might first send a surveyor to assess your repair work before deciding if they will process your claims.
Getting your claim denied can feel like you’ve hit a dead-end, but don’t give up too easily. Our claims consultants are here to assist you – With our expertise and experience, we very well could find a way for you to get some recompense even if you’ve made a mistake. If you would like to give things a second try, contact one of our consultants today.