The festive season is around the corner and many of us are starting to plan our well-deserved December holidays. It is important to ensure that the minute you drive off your property that you have the peace of mind that no matter what happens that you will be covered by your insurer. Here are 10 of the most common reasons why insurers could reject your claim.
- Premiums aren’t up to date
One of the main reasons why claims are rejected is because clients premiums are not paid on time. By law, insurers have to grant customers a grace period to pay their outstanding premium. This period may not be less than 15 days.
- Driving recklessly or under the influence
Driving under the influence of alcohol or under the influence of drugs is a criminal offence. Drivers that are caught driving under the influence risk having their cover immediately nullified.
- Unlicensed or unspecified driver
Some policies only cover the regular driver of the vehicle. This means that your insurer will reject the claim if someone else has an accident while driving your vehicle or the vehicle is stolen. The best thing to do is to tell your insurer if someone else will be driving your car and give them the driver’s details.
- Using your car for personal or business use
When you take out the insurance on your vehicle, the insurer will ask you if your vehicle is going to be used for personal or business use. The reason they want to know if your vehicle is going to be used for business because that will mean that you will be on the road a lot more than the average person, thereby increasing your risk of being involved in an accident. This increased risk will affect your monthly premium.
- No write-off cover
If you have comprehensive vehicle insurance, you are covered for a write-off but if you have third-party cover only then you are not covered for a write-off.
- 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.
- Leaving your keys in plain sight
This is viewed as the owner failing to exercise due care and you therefore risk having a claim rejected in the event that the motor vehicle is stolen.
- Vehicle not parked securely at night
Insurers want to know where your vehicle is parked at night. If you tell your insurer that your vehicle is parked securely in a locked garage at night, but you regularly leave it outside, your claim will be rejected if your vehicle is stolen or broken into.
- Misrepresentation of underwriting details
This would include misrepresentations made about the driver’s details, personal or business use as well as insurance claims (drunk driving offences) and credit history, among others.
- No tracking and security device
Some insurance policies require you to have an alarm, immobiliser or a tracking device, sometimes all three. if you don’t and you don’t, your insurer can reject a claim for damage or theft.