When An Auto Insurance Claim Is Rejected?

Auto Insurance Claim Is Rejected

It is very commonly seen that Auto Insurance companies reject the accidental claims. Insurance companies do this in order to reduce their payment values. Several times Auto insurance claim is rejected when you do not have genuine reason to support your case. Filling the insurance claim and retrieving benefits is really a very difficult task.

Reasons Due To Which Auto Insurance Claim Is Rejected:

Some of the reasons are listed below due to which the car insurance policy claim is rejected.

  1. It is said that person should not lie to the insuring company. If the information provided during filling of application was inaccurate or false. Then the company can reject the car insurance claim.
  2. In case of theft of vehicle or the theft of items from the vehicle. The insurer might prove that the insured party was at fault. The insurance policy might possess a clause due to which your car insurance claim can be rejected.
  3. When the insured person is unable to provide proof’s while applying for claim in the case of theft of items.
  4. In case of partial damage to the vehicle due to accident. It is seen that insured person gets claims lesser than the amount was demanded. All this is done keeping in mind the depreciation of the vehicle. While the insurance company will help the insured in getting back to the position where he or she was before the accident.
  5. Several times the insured person takes the insurance policy for a normal private car while the car was used for commercial purposes. In simple words, if a person is using a vehicle for taxi purpose then he must take policy designed for taxis.
  6. If the value of the car is considerably less than the money you’ve invested in restoration or enhancements.

Things to Remember:

While you are applying for the insurance policy claim, the company will ask for all the important documents that are important for the company. However you are obliged to provide all the documents demanded by the company. This entire process is known as “utmost good faith”. Insurance company use this process in order to reject the claim. If any such situation arises with you, then just remember two important points:

  1. Carefully read the offer documents before, after and during the claiming process. Since the offer document sheet carries lot of weight.
  2. You must keep an account of all the documents related to conversation and other documents that will backup your claim.
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