Tips for Avoiding A Car Insurance Claim Rejection

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Having a car insurance policy doesn’t always mean that you are financially protected in case of an accident. There are a lot of misunderstandings between the client and the car insurance company which can lead to a car insurance claim rejection. In order to have a good relation with your insurance company you must have a very good understanding of their policy and be as honest as possible when disclosing information. In this article we will cover a few of the main mistakes that can lead to a rejected claim.

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Not reading the car insurance policy
As most legal documents, a car insurance policy contains some major clauses as well as a lot of small print information. It is very important to read all of the policy’s details. If you are having problems understanding certain aspects ask your insurance agent to explain them to you. Furthermore, if a clause is unclear in any way, don’t assume that it will apply in your favor. It would also be a good idea to have a lawyer take a look at the policy so that he can tell you how the law views and applies the clauses in the policy.

Not disclosing essential information
Insurance companies have a habit of asking their potential clients for legal or medical information. It is very important to be honest when giving this information and to try to remember even data from a few years ago. When insurance companies investigate claims, they usually also dig into the insurer’s past in order to see if they can find anything that they can use so that they can issue a car insurance claim rejection.

False car description
If you have bought a new car with the standard factory features than you have nothing to worry about regarding the description of your car. However, if you have made any modifications to the car you need to inform the insurance agency. Don’t assume that everything that you have on your car is going to be covered especially if you failed to mention about factory modifications. Furthermore it is also important to specify the class of use for your car. For example if your policy says that you use your car for domestic or social purposes but you crash it while on a job assignment you may be dealing with a car insurance claim rejection. Last but not least if you tell your insurance company that you use anti theft devices which you later take off the car you will not be covered in case of an auto theft.