Car insurance claims usually get rejected in South Africa because of policy exclusions, dishonest clients, a late claim submission, lack of car maintenance, or unlicenced and drunk driving.
If your claim was declined by your insurer in the past, there’s a good chance it was because of one of these reasons, according to King Price.
Why car insurance claims are rejected
All insurance policies come with a set of exclusions that identify incidents that aren’t typically covered under your policy.
Unfortunately, if your claim arises from such an incident there are no grey areas in the rules, and you won’t be protected by your insurer.
“For example, your claim for damage to your car might be declined if your car was being used for something that isn’t covered like transporting fare-paying passengers, or for emergency services,” said King Price.
Another frequent reason for a claim being rejected is when clients are not entirely honest with their insurance provider and neglect to disclose important details that affect their risk profile.
“If, when taking out your cover, you failed to mention that your car has been modified, or that your 18-year-old son drives your car instead of you, you might find your claim getting the red light,” said King Price.
Therefore, being honest and upfront right from the get-go is key to a smooth claim process.
A common occurrence in South Africa is traffic accidents as a result of an unlicenced driver or someone piloting a car under the influence of drugs or alcohol.
As this is against the law, you also won’t be covered by your insurer when you try to initiate a claim if you were the unlicenced or inebriated individual who caused the crash.
Something you may not have expected, car maintenance also plays a role in whether your claim is honoured.
A lack thereof could result in your vehicle being unroadworthy, which in turn, may have been part of the reason for the incident.
Finally, if you wait too long to initiate the claim after something has happened, your insurer may no longer be able to provide coverage.
“If you’re involved in an incident, it’s important to report it to your insurer as soon as possible. If you don’t, your insurer may not be able to validate your claim,” said King Price.
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