Why Was My Car Insurance Claim Rejected? 9 Potential Reasons

It can always feel a little daunting when making a car claim, especially if you previously have had your car insurance claim rejected and you don’t know why. Make sure this never happens to you again by taking a look at these potential reasons your claim may have been rejected.

There is nothing worse than making a car insurance claim and having it rejected. The stress of needing the claim is one thing, but to have it rejected is something you don’t need to deal with. This is why we’re listing the most common reasons car claims are rejected. Ensure you avoid these common mistakes to avoid further stress.

Common reasons for a car insurance claim to be rejected

1. Premiums aren’t up to date

One of the biggest reasons your claim might be rejected is that your premium hasn’t been paid on time. We know that life can run away with you at times, but the good news is that you have a grace period to pay your outstanding premium. This period may not be less than 15 days but could be longer, so be sure to check your policy.

Paying your premiums when they are due is the best way to avoid finding your car insurance claim rejected.

2. Non-disclosure or material misrepresentation

Being honest with your insurer is the best policy! When it comes to insurance, honesty really is the best policy.

Cheesy lines aside, you must tell your insurer about previous accidents and claims, and if you have a medical condition such as epilepsy that can affect your driving. If you don’t, when it comes time to claim, your insurer can reject your claim on the grounds of non-disclosure.

You also need to keep your insurer up to date on your personal information such as your address.

The more your insurer knows – the better. Failing to disclose accurate info can leave your car insurance claim rejected in the future.

3. Unlicensed or unspecified drivers

Make sure to check who is covered for driving your car.

Some policies only cover the regular driver of the vehicle. So, your insurer can have your car insurance claim rejected if someone else has an accident while driving your car or the car is stolen. Tell your insurer if someone else will be driving your car and give them the driver’s details and the details of how long they will be driving your car for.

If your car is being driven by an unlicensed unsupervised driver, your insurer can reject a claim if anything happens.

4. Unroadworthy vehicle

Unfortunately, if you have an accident and it turns out that your vehicle wasn’t roadworthy, your claim will be rejected. The National Road Traffic Act has a list of items that need to be maintained and properly looked after so that your claim cannot be rejected. Here are some of the listed items:

1. The engine and VIN numbers must match those on the registration document and there must be no sign of tampering.
2. There must be no damage or rust present on the body or chassis. Doors must be easy to open and firmly attached at the hinges.
3. The speedometer, odometer, seatbelts, lights and indicators must be in working order.
4. The windscreen must be free of damage, windows designed to do so must open and close and windscreen wipers must work.
5. Wheels and tyres must be the correct size and tyres should have a tread depth of at least 1.6mm.
6. Brakes and shock absorbers should be in good working condition, with no leaks from the hydraulic system.
7. Wheels should be properly aligned and the steering system fully operational.
8. The engine compartment, including wiring, must show no signs of damage or leaks.
9. The battery must be properly secured, and the transmission in good working order.
10. There must be no excessive smoke or noise from the exhaust.

Fail to meet any of these, and you may see your car insurance claim rejected.

Read this: What To Do If You Have a Broken Down Car On The Highway

5. Driving recklessly or under the influence (big no-nos)

Driving dangerously or driving after you’ve been drinking alcohol is never a good idea for multiple reasons.

If you drive after drinking alcohol you are breaking the law and your insurer can reject your claim, no questions asked. The same goes for driving recklessly, which is when you don’t show any care for other people on the road.

Even texting while driving is driving recklessly. Your insurer can reject a claim if something happens while you are doing this. Speeding is another no-no. Keep to the speed limits.

Pro tip: If you have an accident, no matter how small, don’t flee the scene. In the case of bumps and dents, you can swap details with anyone else involved and report the accident to the police within 24 hours. If there are injuries, you need to be on the scene until the injured are treated or taken to hospital. If this isn’t followed, your claim could be rejected.

Related: 6 Safe driving practices that just might save your life

6. No write-off cover

If you have comprehensive car insurance, you are covered for a write-off (this is when a car is too damaged to be repaired). If you have third-party cover only, you are not covered for a write-off.

Take a look at your policy to see what you are covered for.

7. No tracking and security device

If your insurance policy requires you to have an alarm, immobiliser and tracking device, and you don’t, your insurer can reject a claim for damage or theft.

8. Vehicle inspection not carried out

Most insurers insist that your vehicle is inspected when you take out a policy. This is to check for any pre-existing damage. If this inspection is not done, you are in breach of contract and your claim will be rejected.

With us, you can conduct a vehicle inspection at home with the Oneplan App.

9. Vehicle not parked securely at night

Insurers want to know where your vehicle is parked at night. Your car is basically your baby and we need to know how safe it is.

If you state that your car is parked securely in a locked garage at night, but you regularly leave it outside, you will not be paid a claim if it is stolen or broken into.

Related: Keep Your Car Safe and Park It in a Garage! (And How This Could Save You Money!)

The best thing to do to avoid having your car insurance claim rejected:

Make sure you read your policy carefully! That way, you’ll follow everything you need to do and when it comes time to claim, there would be no reason for your claim to be rejected.

When in doubt, chat with us. We want your claims to be processed easily and want to take the stress off of you. Trust us, we don’t bite.

Yours in hassle-free and affordable car insurance,
Oneplan