How to Deal With a Rejected Car Insurance Claim

Home » Insurance » How to Deal With a Rejected Car Insurance Claim

Car insurance is a mandatory requirement for all drivers. It is a financial measure of protection for you and other possible victims of a car crash. However, insurance companies always follow their own interest and they can refuse to approve certain claims if they think that the claims are not valid. The validity of a claim is established according to the car insurance policy bought by the insured. Today we are going to discuss about the best course of action for dealing with a rejected car insurance claim.

[Not a valid template]

Reasons for a rejected car insurance claim
There are many reasons why an insurance company can refuse to approve a claim and they usually income the clauses in the acquired car insurance policy. The main reason that car insurance companies invoke when rejecting claims is non-disclosure. This means that either hid or manipulated information which was essential in determining your level of risk. Other common reasons why insurance companies can refuse to approve a claim are: exclusion clauses, fraud, policy cancellation, unlicensed driving, drunk driving, unroadworthy vehicle, reckless driving, tracker device not fitted, vehicle used for business, security device not fitter, total-loss policy and so on.

Options
If you are called by an agent informing you that your car insurance claim has been rejected ask to receive a written documentation with the refusal completed with the reasons of rejection. Once you receive the written compensation you have four possible options. The first and most simple option is to complain at your insurance company’s Internal Dispute Resolution. This way, in case there was a mistake made when analyzing your claim, the problem will be resolved in a timely manner by the insurance company. However, if the IDR is not on your side you have other options. The next step in dealing with a rejected car insurance claim is to complain to the Financial Ombudsman Service. The FOS usually deals only with customers who have already complained at the IDR. Another option is to apply to your local tribunal for consumer claims. You can also choose to go directly to court but this is a more complicated approach and you should only go to court when all other options fail. The FOS is usually your best and most convenient option. Making a complain there is free and the service is independent from the insurance companies but has the authority to force them to pay the just claims.