You may well find yourself in the position where your insurance claim has
been rejected. This can happen for a number of reasons - which once again
underscore the need to comply fully with the claims procedures, to keep records
of everything, to be consistent and honest, and to make sure what you policy
does and does not cover, as well as the grounds for exclusion that are stated in
These are some of the most common reasons for a claim being rejected, or for
a payout that is less than the amount you claimed:
- The insurance company determines that you were at fault - for example,
in the case of a theft, you might have left your keys in the car door, or
something like that.
- The claim falls under one of the exclusion clauses in your policy. Make
sure that you read and fully understand all your policy provisions - and if
you are not happy with them, either take up the matter immediately with your
insurer, or change to an insurer that has a more favourable policy. Do this
as soon as you can, before you ever have to make a claim.
- You gave information which was not entirely true, and the insurer has
determined that your version of events is not accurate. Note that there may
be further legal or criminal repercussions from this. You may also have
given false or inaccurate information when you took out your insurance
policy - for example, saying that your car had a security system which it
did not actually have.
- You may not have the necessary documentation to support a claim - for
example, if you have lost receipts for repairs done.
- The value of the items that you claimed for has been estimated by the
insurer to be less than what you claimed.
The bottom line here is to make sure that you are always as honest and
accurate as possible, both when you take out your insurance policy and when you
make a claim. Also always remember to keep all relevant documentation pertaining
to your car and the accessories that you install.
There are some common things to make sure you pay attention to:
- Read and understand the fine print, exclusions and terms and conditions
of your policy. If you do not understand something, have it clarified by
your insurer. Of course it's best if you do this before you take out your
policy in the first place. Also make sure that you get clarity on how the
insurance company will interpret it when it comes time to claim.
- Keep records of all interaction with your insurance company (dates of
phone calls, reference numbers) and documentation pertaining to your vehicle
(receipts, security installment certificates etc).
- Remember that you premium is linked to your insured amount. You are
entitled to be paid out what you have insured for. You don't always need to
accept the amount that you are offered, especially if you feel you have
grounds to dispute.