Car insurance claims are turned down for a variety of reasons - find out what to do if your claim is refused and how to avoid it happening again.
The most common reasons for your car insurance claim being rejected are:
If you’re not sure why your claim has been refused check your policy documents or contact your insurer.
You can dispute the decision if you don’t agree with the reason why the claim was refused.
Write a formal complaint letter to your insurer - point out the mistake and provide evidence to prove the rejection was wrong. Hopefully it'll renegotiate with you and give you a fair settlement.
You can appoint a loss assessor, to handle the claim and dispute for you, if you aren’t confident doing it yourself.
If you and your insurer still can’t agree, you can contact the Financial Ombudsman Service to review and resolve your claim.
You won’t need a lawyer if you go to the Ombudsman - it’ll handle the case for you. And the best thing is it’s free.
Make sure your policy documents have the right details.
Name or address changes are things your insurer needs to know about. They need to have your up-to-date information and might need to recalculate your insurance premium.
They work independently and must follow British Insurance Brokers’ Association (BIBA) regulations.
That means they need to put you first and find you the best deal they can, both in terms of the scope of cover, and the price.
Keep your car in good condition to avoid your claim being rejected due to an unroadworthy vehicle.
Your claim can be refused on grounds of negligence if you’re involved in an accident because your car isn’t safe to drive.
An accident that’s your fault because you were heavily negligent or broke the law can be refused.
Insurers might reject your claim if your accident was caused by your illegal actions, like speeding or being under the influence of drugs or alcohol. You could also be prosecuted.
Stay alert and follow the rules of the road to minimise the risk of accidents and keep yourself and others safe.
If you’re involved in an accident, stop as soon as it’s safe to do so and report it to the police within 24 hours. It’s against the law to drive away, no matter how minor the crash