Common motor insurance claim rejections - and how to avoid them

According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, the terms and conditions of an insurance policy clearly state exactly what the consumer is covered for, as well as the circumstances required to ensure claims are accepted. "If motorists deviate from these conditions, then the unfortunate reality is that they may face insurance claim repudiations.”

In order to assist motor vehicle owners to avoid such a scenario occurring, Fourie highlights some of the common reasons why motor insurance claims are often repudiated by insurance providers.

Should a motorist be caught driving under the influence of alcohol and/or narcotic substances, or the driver no longer has a valid driver’s licence, they are considered to be partaking in a criminal offence and their motor insurance cover may be immediately invalidated. In addition to this, if a driver is caught driving in a reckless and negligent manner or speeding excessively, which resulted in damage or destruction to the vehicle, the related insurance claim(s) are likely to be repudiated.

Windscreen wipers which are not working properly, or a tyre tread below the legal limit of 1.6mm, are common examples of vehicle conditions which can significantly increase the likelihood of an accident occurring. Should a motorist be involved in an accident and further investigation reveals that any aspect of the vehicle was not in a fully working condition and contributed to the cause of accident, the insurance claim can be rejected on the basis of the vehicle not being in a roadworthy state.

When a motor insurance policy stipulates that cover is only provided for a specific named driver, an insurance claim will only be successful if this driver was behind the wheel at the time of the incident. Should an accident occur while another person is driving the car, the claim may be rejected as the policy only covers the named driver.

A situation that often occurs is parents listing themselves as the regular driver for their children’s cars due to the fact that motorists under the age of 27 typically pay a higher premium because of their higher risk profile. However, despite saving through lower premiums, they could lose out when it comes time to claim, as their claim may be rejected if their child was driving when an accident occurred.

Many motorists form carpooling groups in an effort to reduce costs associated with daily travelling. However, they could be placing themselves at risk of motor insurance claim repudiations if they are not aware of the insurance considerations when it comes to carpooling activities. If consumers receive money and earn a profit for their carpooling initiative some insurance companies may consider this to be business use, which could cause problems if the policy states the car is only covered for personal use.

Requirements for securing a motor vehicle in a garage will differ between insurers; some will accept an off-street parking as acceptable while others may stipulate that the vehicle must be kept behind an automatic garage door. Therefore, motor vehicle owners must read through the policy to ensure that the suggested method of security stipulated by the insurer is in place. If a motorist parks in an unsecured driveway or on the road, it is essential that they notify their insurance provider of this to ensure they are covered in the event of the car being broken into or stolen.

"By bearing the above in mind and reading insurance policies, motor vehicles owners can face a lower risk of insurance claim rejections,” concludes Fourie.