Car purchase and car insurance go hand in hand - once you have purchased a car, insuring it should be your next move. Making sure that your car is secured when hitting the road should be your utmost priority, as accidents can happen. New Zealand’s best car insurance providers can provide assurance to Kiwis that they can rely on them if an unfortunate event were to occur. Yet on some occasions, they deny the requests for car insurance claims... but why? Here are the 7 most common reasons why car insurance claims get denied.
Just because you paid your insurance doesn’t mean that you can be negligent in taking care of your car… it is yours after all! If your car is deemed unsafe for travel, or has defected parts, your claim may be rejected. Also, if ever you leave your car unlocked it would be deemed your fault by insurers if it was stolen, as you did not take 'reasonable care' of your car.
If your insurer denied your claims request, it’s best to recheck your insurance plan to see if it is covered. There are usually three types of insurance available in New Zealand, and each one varies in cover. We recommend researching how to choose the right car insurance plan and taking the time to review their policy details. While different plans clearly state varying coverages, most Kiwis are unaware of this. NZ’s Insurance Brokers Association CEO Gary Young said that most consumers just assume that insurers will pay them if ever accidents occur.
Sure, you can easily process claims for car dents and scratches - as most car insurance policies cover those - but if you are intoxicated during the accident, your insurer will most likely not process your request. Make sure to get the facts straight when talking to the insurance manager. Factors such as the number of hours you had your drink before the accident occurred or how much did you drink can all affect your request for car insurance claims.
If you are driving under a restricted or learners licence, your claims will most likely be denied. Even if you have a capable and licenced passenger by your side, the claims may also not be processed as you, the insured driver, are liable for the vehicle. In cases where a passenger has “driver only” insurance, the insurer will still not cover any damage for the car if he is not the one behind the wheel. In addition, unregistered cars and unlicensed drivers are unquestionably strong grounds for your claims refusal.
If you are not paying your premiums, then don’t expect to have a satisfactory claims result. Paying your premium means that you let insurers take care of your car in an unlikely scenario. Without your payment, insurers may still process your claims though not at full extent. When you receive the bills for your insurance, make sure to pay it immediately. If you pay annually, set a time of the year when you will pay and turn on notifications. Paying is a reassurance of claims getting approved for the right reasons.
If you start using your personal car for business reasons - such as parcel delivery or Uber, your insurer may decline your claim request. Even if you - the driver of the vehicle - has an existing “driver only” insurance, your claims will still be denied. This is because the policy terms and conditions for your car generally state that it is only valid for private use. Once it is used beyond that, the policies will be forfeited.
According to the Insurance and Financial Services Ombudsman (IFSO), most complaints about denied claims stem from not telling the truth. To cover you properly, the insurers need to know every single detail no matter how small or insignificant it may be. This is not only applicable for accidents that have occurred, but also for the terms and renewals of your plan. Without these essential data at hand, insurers have the power to void your request for your car insurance claims at will. Driving in New Zealand is safe as far as road safety is concerned. But no matter how careful we are, accidents can still happen. So, be sure to take note of these reasons if you’re ever involved in an accident. With these, you can easily know the process of your claims and your rights as a consumer. Make sure your car is secured on the road with the car insurance policy that matches your needs. You can easily compare the policies of the best insurance providers in New Zealand, and get a tailored result in a few minutes by using Glimp.
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