Reasons why your Car Insurance claim got rejected

Even though it is mandatory to have car insurance in UAE, it secures you financially during emergencies. A car insurance claim is made when there is damage to your car, any injury to the third party, or any instance according to the policy cover. 

Some of the basic coverage provided by car insurance is, 

  • It covers damages caused due to accidents. It can be to the car or belongings in the car 
  • Natural calamities like fire, floods, earthquakes, etc. 
  • It provides coverage for theft, vandalism, riots, etc. 
  • Damages did to third party vehicles 

Check: How many times a year can you claim your Car Insurance?

Apart from these, car insurance can provide coverage for many other instances as well which depends on the insurance provider and policy chosen. But there can be times where an insurance provider might reject an insurance claim. Being a car insurance holder you must be aware of factors that are not accepted by the insurance provider. 

1. Driving under influence  

It is a well-known factor that driving a vehicle under the influence of drugs, alcohol is illegal. And if any damage occurs to the vehicle while you are driving under such substances, the insurance provider will straightaway reject the claim. This will not only put you under legal trouble but also financial trouble as you need to get your vehicle fixed on your own. 

2. Fraudulent Claims 

Making a false claim to get benefitted of the insurance policy coverage is not accepted by the insurance provider. When a policyholder requests for the coverage claim, the insurance provider will inspect the car and if the details provided are not satisfactory then the claim can be rejected. 

Even if the damages caused to the vehicle are intentional, the insurance provider will reject the claim.

Also, check: Factors that your Car Insurance Don’t Cover

3. Change in Car Specifications

While applying for a car insurance policy, the owner of the car needs to provide details of the car like color, engine capacity, etc. At the time of claim if these details don’t match with the existing components then the insurance claim will not be accepted. 

If any specific modifications are made to the vehicle that will increase the vehicle performance then it needs to be informed to the insurance provider. The insurance provider will note the changes and may charge an additional amount on the premium according to the new specifications. 

4. Driving without license 

Driving a vehicle without a valid driver’s license is a legal offense. If you meet with an accident and find that you don’t possess a valid driver’s license then the insurance company will not accept the insurance claim to cover the cost of the damages. 

5. Delay in claim 

Usually, each and every insurance provider will set a certain period of time to report to them while making the claim. It won’t be accepted if you are applying for the claim for the accident that happened last year. Hence ensure to report to the insurance provider right after any activity with your vehicle if you want to claim for the coverage. Else the provider might reject the claim application if you report after the deadline.

6. Expired Policy 

Always the policyholder needs to ensure that the insurance policy is active. Making a claim after the policy is expired is not accepted. If your insurance policy expired yesterday and you met with an accident today then you can’t apply for an insurance claim. 

7. Unauthorized usage of the vehicle 

The insurance coverage provided for personal and commercial vehicles is different. If you have got a personal policy and used the vehicle for commercial purposes and applied for the claim to cover the damages caused then the insurance provider will not accept the request. 

These are the major factors that can make your insurance claim get rejected. It is important for an insurance buyer to read the terms and conditions to understand the working of the policy. Insurance policy comes to the rescue financially when any mishap occurs. Therefore be aware of the reasons that can make your policy claim get rejected. 

Meet the author
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Nikitha is a Senior Analyst at MyMoneySouq.com. She has been writing about personal finance, credit cards, mortgage, and other personal finance products in the UAE. Her work on Mortgage loans has been featured by the GulfNews and other popular Financial Blogs in the UAE.

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