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When can your auto insurance claim be rejected?

​Rejection of auto insurance policy claim is not new in motor insurance industry. Though many individuals would tag the auto insurance company as fraud for not clearing the filed claim or reducing the paid amount, the fact is that in normal practice auto insurance companies take such actions mostly on genuine reasons. There can be many reasons that an auto insurance company may reject your automobile insurance claim. This obviously means filing an auto insurance claim would not mean that you will get it for sure. The process of filing auto insurance policy claim and getting the appropriate benefits is indeed not easy.

Take a look at some of the common factors that may lead to rejection of your auto insurance claim:

1. If your claim is related to theft of your vehicle, there might be chances that your automobile insurance provider may hold you responsible for the same, on grounds like not installing theft alarm, etc. Auto insurance policy providers like to see people who are cautious about their vehicles and take preventive measures to protect the same.

2. Many auto insurance providers insist on complete and right information from customers. However, many individuals either tend to ignore this factor or miss out on this point at the time of filling the auto insurance policy application. As a result, you stand at higher risk of facing rejection during claim. Any auto insurance company may reject your claim if the details mentioned in your application are incorrect or false.

3. Your automobile insurance claim may also get rejected if you have bought auto insurance policy for a normal private car, but your vehicle was used for commercial purposes. If you use your vehicle for commercial purposes or as a passenger vehicle, then you should buy relevant insurance policy like goods carrying vehicle insurance, passenger carrying vehicle insurance.

4. In some cases though the auto insurance company accepts your claim, it pays you only a section of your claim amount ad not the full value. This can be because of depreciation of the vehicle.

5. If you fail to produce relevant receipts, documents at the time of filing claim, there might be chances that your automobile insurance company may reject your claim.

6. In case your vehicle meets an accident because of reasons like driving under influence of alcohol/drug, driving without valid license, or illegal means, you shall not be eligible for any automobile insurance claim towards the damage to your vehicle or by your vehicle.

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