Top Reasons Why your Car Insurance Claim Could Be Rejected

In the unfortunate event of a car accident, motor insurance should make your burden easier by covering the cost of injuries and damages and possibly the replacement of the vehicle. Sometimes, this is not the case. It is unfortunate that you should invest in insurance only to have the insurer let you down in your hour of need. Here we look at some of the reasons why your case could be ruled out and what you can do to avoid such an eventuality.

The premium is not up to date

Have you been paying your premiums consistently? Sometimes you could have paid your premiums on time for months or even years, then one time that you’re late, an accident happens. The insurance company can overlook all the previous payments and deny your claim on grounds of late payment.

By all means, pay your premiums on time. You can set a reminder a few weeks before the current one expires, so you can renew it on time. Go for a premium that you can afford, so you do not have to struggle with the payments. Always compare different insurance policies before you pick one. Search online so you can have an idea of what to expect. If you check for the average insurance cost for Dodge Charger, for instance, you will come across multiple insurance companies with different packages. Choose one with a flexible payment plan and within your budget, so your premium can always be up to date.

Late Reporting 

How long do you take to report an accident to your insurer? You’re best advised to do so right away. Most insurance contracts stipulate that you should report within 24 hours. If you do so any later than that, then they can use that loophole to invalidate your claim.

Remember the reporting here is not merely word of mouth. The injuries, if any, have to be ascertained by a qualified doctor. The incident should also be filed with the traffic department and the appropriate paperwork obtained.

Should the injuries be so severe that you’re in a hospital bed and are unable to follow up with the relevant departments, at least reach out to the insurance company online? In the unfortunate event of the death of the motorist, the next of kin takes up the role of communicating with the insurer so that the compensation process can start.


If the accident was caused by a level of carelessness on the driver’s part, then the insurer is under no obligation to honor the claim. Was the car in an unroadworthy state? Had the car been regularly inspected? Was the driver a holder of a valid driving license? Was it a case of careless driving? Was the driver under the drug influence of alcohol or other drugs? The insurer will query all these matters. Keeping your car in good shape and adhering to traffic regulations ensures that you will not be ruled out on such a technicality.

The policy was canceled

Insurance companies do cancel policies when they hold liabilities that the insurer is not willing to bear. For instance, some car models have been known to be key culprits of accidents due to design flaws. You may have insurers canceling the policies of the affected models. Make sure you stay in touch with your insurance company to ensure that your policy remains active.

In conclusion, a decline in your claim should not be the end. Should you feel that your claim has been declined unfairly, you can file a case against the insurer. Car insurance does not come cheap, you had better be sure that it comes through for you when you need it.