Many people overlook the importance of reading their car insurance policies until an accident occurs, leaving them unsure about the claim process and potential rejections.
This article highlights reasons for car insurance claim denials. Let’s dive in and understand what can cause your claim to be denied by the insurance company.
No police report
If you’re in an accident, go directly to the nearest police station and file a report. Don’t underestimate this step because your car insurance claim might be rejected if you don’t have a police report or if it’s filed after 24 hours.
So, don’t procrastinate or overlook the importance of making a timely police report, as it will help streamline your claim process.
Unnamed driver
This means that if someone else, like your partner, child, or friend, drives your car and gets into an accident, they won’t be covered by your insurance. This can result in a denied car insurance claim.
Using your car frequently with your partner can be challenging, but there’s a solution. You can add them to your insurance policy as a named driver, ensuring their protection in case of an accident.
Different types of insurance coverage
Insurance doesn’t always cover all types of car damage or accidents, so it’s crucial to fully understand your policy when purchasing car insurance.
For instance, if you have a third-party policy, it’s important to know that it won’t cover damage to your own car but only repairs for other parties involved.
Inaccurate information
Ensure that you provide accurate information when completing your insurance application. Honesty is crucial.
Since the implementation of car insurance tariff liberalisation in 2017, insurance companies now consider various factors to determine insurance prices, including marital status, occupation, vehicle safety features, and parking location.
Drunk driving
Malaysia’s Road Transport Act 1987 clearly states that driving while intoxicated is illegal and poses a risk to other drivers. This includes being negligent due to alcohol or drug use. Therefore, if you choose to drive drunk, it’s important to know that the car insurance company will reject your claim without hesitation.
Avoid car insurance claim denials
Understanding the details of your car insurance policy is crucial. Make sure to understand every term and condition before purchasing the policy. Ensure that you are well-prepared for any future incidents and avoid insurance claim denials.
Visit Bjak now to enjoy exclusive discounts, attractive prices and benefits for your car insurance without any hassle!
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
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