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Cape Town - Just because you have car insurance doesn’t mean that you’re going to get a pay out in the event of a road accident.
Here are the top reasons that companies deny insurance claims, according to Carinfo.co.za, which provides information about the car industry, including car reviews, free online car insurance quotes and reviews about insurance companies.
1. You weren’t paying your car insurance premiums
It sounds simple, but one of the biggest reasons that car insurance companies deny claims is that the person insured didn’t keep up with their payments. If you don’t pay your monthly premium on time every month, then you might find that you lack coverage when you actually need it.
2. The driver or car aren’t ‘in order’
Generally, an insurance policy covers a named driver (or drivers) and a certain car in a certain condition. If the driver during a car accident wasn’t the driver named in your policy, then your claim will be denied. Similarly, if your car wasn’t the one named in your policy your claim will be denied.
Many policies state that the car must also be in a roadworthy condition, which means that if you’re not keeping up with your car maintenance schedule you might not get your pay out.
3. You didn’t disclose certain information
When you fill out an application for vehicle insurance you’ll find that insurance companies ask for a lot of information. They don’t just want to know your name and age, you’ll be asked about your insurance record, your driving record, your credit history and your health history.
Failure to be up front about any of the issues you’re asked about can result in your policy becoming invalid, even if you’re paying premiums.
4. Driving recklessly
Here’s a bit of a difficult one: some car insurance companies will include a statement called a “failure to take care” clause. This means that if the company can prove that you were driving recklessly (you missed a road sign, for example, or were driving too fast) then they don’t have to pay out on your claim.
5. Your vehicle wasn’t secured
Even if you weren’t in a road accident, and say your car was ‘only’ stolen, that still doesn’t mean that you’re on safe ground. Many insurance policies state that you must take adequate security precautions. This means that if your car isn’t stored in a garage, or you don’t have something like a clutch lock, the company may deny your claim, saying that you didn’t actually have the security measures that they requested (and you agreed to) or that you stated that you have but in fact didn’t.
Carinfo.co.za advises that the best way to avoid claim rejection is to know your insurance policy and abide by it. “It’s up to you to read through the terms and conditions of your vehicle insurance policy and make sure that you keep to them.”
Read the full list of 10 reasons why insurance companies can reject your claim on Carinfo.co.za.
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