10 Reasons Why Your Car Insurance Claim Could Be Rejected

Mar 5, 2020


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1. Premiums aren’t up to date

This is one of the main reasons why claims are rejected. Some insurers are obliged to have a clause in their policy which grants clients a grace period to pay the outstanding premium.

2. Unlicensed or unspecified drivers

Most policies only cover the specified drivers on the policy. So if someone else will be driving your vehicle, you need to make sure that you add them onto your policy as a nominated driver. Also, if the vehicle is involved in an accident while being driven by an unlicensed driver, the claim will be rejected.

3. An unroadworthy vehicle

If your vehicle is not in a roadworthy condition and you get into an accident, your claim will get rejected. The engine and VIN numbers must match those on the registration document. There must be no damage or rust present on the body or chassis, while doors must be easy to open and firmly attached at the hinges. The speedometer, odometer, all seatbelts and all lights and indicators must all work. The WIndscreen must be free of any damage and the windscreen wipers must be operational. The windows must be able to open and close. Wheels and tyres must be the correct size and the tyres tread depth must be at least 1,6 mm and brakes must be in good working condition, with no leaks from the hydraulic system as well as the shock absorbers.

4. Driving recklessly or under the influence

 If you were driving recklessly your insurer might refuse to pay out your claim and if you are involved in an accident while driving under the influence of alcohol, your claim will not be paid out. There is also a Breach Of Road Traffic Regulations clause, where if you were speeding at the time of the accident, your claim might also be rejected. Also, if you leave the scene of an accident unlawfully where a person or animal is killed or injured or any property (including another vehicle) is damaged, you must stop your vehicle to have a look at the extent of any damage or injury that has been sustained and report the accident to the relevant police department within 24 hours of it happening, failure to do this could cause your claim to be rejected.

5. Your policy has no write-off cover

Unless write-off cover is clearly stated in your policy, your insurer will not be liable if your vehicle is written off in an accident.

6. Telematics indicate driver error

Telematic devices are used to track and recover your vehicle if it is stolen but can also be used to monitor your driving. If your vehicle is found and it comes out that bad driving or speeding caused an accident, your claim might be rejected.

7. The tracking and security devices was not fitted

If your insurance policy requires you to have a tracking device fitted and you don’t have it fitted, your claim will be rejected. This also applies to alarms, immobilisers and gear locks.

8. The vehicle inspection was not carried out

If this inspection is not carried out by a professional, you are in breach of contract and your claim will be rejected because most insurers insist that your vehicle is inspected before the policy can be activated.

9. The vehicle is used for business

Most vehicles in South Africa are insured for private use. If, however, you will be using the vehicle to perform your work duties such as travelling t clients, attending meetings etc. you need to inform your insurer of this or your claim will be rejected. will have to be disclosed.

10. The vehicle is not parked in a secure place at night

Most insurers want to know where your car is parked at night and if you state that it is parked in a locked garage but it is found parked outside in the street, you will not be paid out if it is stolen or broken into.

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