Around 43,000 car insurance claims are turned down every year, leaving motorists out of luck and out of pocket.
Conversely, insurers pay out just under £22 million for private car insurance claims every day, which equates to just under £3,000 per claim.
If you want to avoid being one of the two percent of motorists who have their car insurance claim rejected, take a look at these five ways to ensure a claim doesn’t get turned down.
Buy the right policy
Not having the right cover in place is one of the most common reasons why car insurance claims are turned down. Don’t just buy on price – make sure you consider all your needs. For example, if you drive to work, make sure the policy includes commuting.
The claim value being below the policy excess is another reason why claims are rejected. Be sure to check your voluntary and complusory excesses before arranging cover.
Read the small print
It’s always tempting not to read the small print, but you could be missing out on what isn’t covered by the policy. The policy document will outline any procedures you need to follow, such as notifying the insurer if you change your job or move house.
Modifying your vehicle could invalidate the policy, so notify your insurer if you fit a towbar. Similarly, if you exceed your agreed annual mileage, you’re at risk of having your car insurance claim rejected.
Secure and maintain your car
Insurers expect drivers to take steps to prevent accidents, theft, loss or damage. A theft claim will be rejected if the key has been left in the ignition or the driver is found to have been under the influence of drink or drugs.
A car insurance policy is invalid without a current MOT certificate unless the vehicle has been declared SORN and the policyholder has arranged laid-up cover.
Act quickly and follow the procedures
In the event of a claim, follow the procedure outlined in the policy document and report losses promptly. The insurance company will guide you through the claims process and deal with a third party on your behalf.
Be sure to write down anything relating to an accident; dashcam footage and photographic evidence can be extremely useful in the event of a claim.
Be honest if you want a successful car insurance claim
Don’t bend the truth when arranging cover or making a claim. Providing incorrect information or omitting details could invalidate your insurance, as could exaggerating the value of a claim.
If an insurance company finds that you have been dishonest, they are entitled to decline the entire claim.
‘Insurance is complex’
Matt Oliver from GoCompare, the company behind the car insurance advice, said: “Insurance is complex, but when applying for cover, it’s essential to be honest, and take the time to read through the policy details to make sure it covers everything you need and has excess levels you can afford.
“The information you give when applying for insurance is used to determine the cost of cover, so omitting information or bending the truth to get a cheaper deal could land you in trouble if you need to make a claim.”