It’s never a good day when you have to claim from your insurance for damages to your car, but it can get much worse if that claim is not paid out because of a seemingly-small detail.
Before hitting the long road this December, ensure that you and your vehicle adhere to the terms of your insurance agreement to have the best chance of getting a claim paid out should the unforeseen happen, recommends Youlon Naidoo, executive head of claims and procurement at MiWay Insurance.
Insurance checklist
A few things must be in order to give your insurer the least cause for rejecting your claim, said Naidoo.
Firstly, it’s imperative that the regular driver of the insured vehicle is reflected accurately on the policy. Different drivers pose different levels of risk and the premium is calculated accordingly.
“While it might be tempting to list a more established driver with hopes to save on those monthly premiums, this approach will severely backfire on you when claiming after an accident,” said Naidoo.
“Should checks reveal that the regular driver of your car isn’t the person listed on your policy, your claim is at risk of being rejected due to the prejudiced risk profile and could even impose higher premiums going forward.”
While you’re at it, it’s also wise to double-check the particulars that your insurer has on book, such as your address, where the car is parked, and how often you use it.
If this information is found to be false upon claiming, it could lead to your claim being rejected or the policy being cancelled. In extreme cases, it can even lead to prosecution
“So, if any of your information has changed since taking out your insurance policy, make sure to update your insurer as soon as possible,” said Naidoo.
If all the paperwork is in order, the next thing to look at is the car itself, and among the most vital parts of a vehicle are the tyres.
Wheels with cuts, tears, punctures, or insufficient tread hinder their ability to hold the road, subsequently affecting braking and handling performance while simultaneously raising the risk of the tyre bursting while the car is in motion.
“Being involved in an accident while your tyres are worn could put your insurance claim at risk, even if you did not cause the accident,” said Naidoo.
Other reckless actions to avoid when on the road include speeding, driving under the influence of alcohol, driving without a valid licence, or driving an unlicensed vehicle.
“While causing an accident doesn’t necessarily put your subsequent claim at risk, doing so as a result of reckless driving is likely to make the process very difficult,” said Naidoo.
Paying your insurance premium on time every time is equally as important.
“Typically, an insurance policy covers its holder for the period between payment dates,” said Naidoo.
“Should you miss a payment, after the period of grace where applicable, you will not be covered during that period, meaning your insurer can choose not to honour a claim for an incident which occurred during that time, or opt to cancel your policy entirely.”
However, if you believe you adhered to all of the above recommendations and your claim was still rejected, there are various forms of recourse.
The first point of contact should be the insurer’s own dispute resolution team, though should the matter remain unresolved, you can approach the Ombud for short-term insurance who will offer an “objective and specialised assessment of your case and provide adequate resolution if merited,” said Naidoo.
Keyword: Give yourself the best chance of having a car insurance claim paid out