Just purchasing an auto insurance policy is of no good if you cannot ensure that your claims will be settled quickly when it is required. A number of claims keep getting rejected by auto insurance companies due to some common errors committed by the customer. These are mistakes that can prove to be costly, but they are mistakes that can be avoided easily.
The most important thing is to ensure that you renew your policy on time. Even if you have been a customer with the same insurer for a number of years, just missing your renewal by a single day can prove to be costly. In case, the claim arises on that day due to some unfortunate incident, the insurance company will surely reject your claim. There is absolutely no grace period for auto insurance policies, unlike the life insurance policies. These contracts are drawn up only for a period of one year. Other than losing the claim, you may also lose out on the ‘no claim’ bonus in case the vehicle is not insured within a period of 90 days after the expiry of the policy.
Auto insurance policies only cover risks against any accidental damage to the vehicle, but don’t cover any damage that arises out of wear and tear. Parts such as the tires, tubes etc., that are prone to wear and tear are not covered under the policy. If any claims are made for such things, they will be rejected.
If you have decided to make alterations to your vehicle, you must inform your insurer. Keep them informed if you fit LPG or CNG kits into your vehicle because failure to keep them informed could also lead to rejection of claims in the future.
In case you have done modifications that may increase the risk factor, it should be brought to the notice of the insurer immediately or the company may reject your claim, as they have every right to do so. The company also has the right to reject your claim if you were found driving under influence when the accident occurred.
The most common mistake that people make is delaying in reporting the accident to the insurance company. Contact your insurance company immediately after the accident and after the accident report has been filed. Any delay in reporting may lead to your claims being rejected.
Read the terms and conditions mentioned in your policy carefully in order to avoid nasty surprises when you have to file a claim.