There’s always the slight element of doubt and fear when making a large claim to your car or household insurance that the claim could be rejected. What happens if they don’t pay out? Is there anything you may have overlooked? To put your mind at ease, here are some of the things to be wary of when making your next claim.

Possible reasons for a rejected car insurance claim

Most of the reasons behind your car insurance claim being rejected are fairly obvious and self-explanatory. In the instance of an unlicensed driver, drunken driver, unpaid premiums or unroadworthy vehicle, your short-term insurance company is highly unlikely to approve your claim. There are, however, more subtle clauses to look out for in your terms and conditions before signing-off on any car and household insurance quotes.

Carelessness

A “failure to take care” clause, for example, which refers to recklessness rather than negligent driving, could be an issue. Insurers will want to know the service history is up-to-date to be confident that any incident or damage wasn’t incurred due to lack of maintenance.

Conditional cover clauses

Another aspect often overlooked is that of conditional cover. People may choose to take conditional cover for the more affordable premiums, however, there are obvious conditions that then need to be adhered to. Perhaps your vehicle is only covered on the condition that a tracking device has been fitted, or maybe your vehicle needs to be kept in a locked and secure enclosure overnight. These terms will need to be adhered if stipulated in your terms and conditions.

Lack of honesty

Lack of honesty is always a problem, particularly, prior non-disclosure at the underwriting stage. It is vital that you make your insurance company aware of any physical frailties you may have and also specify any previous credit record issues beforehand. All of this could come back to bite you if certain undisclosed information is discovered during a claim investigation.

Possible reasons for a rejected household insurance claim

When it comes to the various car and household insurance South Africa has to offer, it’s important to do your research. You’ll need to ensure you’ve taken the right kind of Household Insurance cover for your needs, that fits not only within your budget but also sufficiently covers you and your possessions.

Inflated and fraudulent claims

Household insurance provides you with cover for household contents such as electrical appliances and furniture. If you are submitting a claim, always remember that you cannot expect compensation for assets which are not insured. When taking out insurance, insuring all your assets for their full value is always the wise thing to do as this ensures that you receive adequate cover. In this regard, your claim might be rejected, or you might have to pay in the excess, if you under insure your household contents. If you are taking out an insurance policy with a new company, it is vital that you inform them of any previous claims you might have made.

Again, with household insurance claims, honesty is the best policy. Filing any claim based on false information could land you in some seriously hot water.

Finally, always make sure you read and understand the terms and conditions of your car and household insurance policy before committing to the clauses in place.