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The harsh reality of being a car owner is knowing that nothing in this world is immune from damage, even if you love it dearly. That’s why it’s considered a must to have a comprehensive car insurance policy on top of the mandated third-party liability insurance you need to register your car. Comprehensive insurance policies help you by giving you some breathing room and softening the blow to your wallet when your car gets involved in an accident.

If you got your car insured, great, now you’re guaranteed financial security from any car-related damages while driving. Do not think for a second, however, that this means you’re free to drive like some western outlaw on the road. 

Merely filing a claim after a car accident does not guarantee immediate payment. Your insurance company will carefully assess the circumstances of the accident before determining whether or not to cover the expenses.

In case your car insurance claim is denied, don't panic right away. There could be a valid reason why it was rejected in the first place. Here are 10 reasons why insurance providers deny auto insurance claims.

We’ll start off with a no-brainer. If you haven’t paid your insurance premiums, the insurance provider will not pay out, simple as that. You will never predict when an accident will happen, and your own abilities as a driver do not compensate for the ignorance and incompetence of other drivers you might encounter. So be safe, be ready, and pay your insurance premiums on time.

Driving Fast Inline

Your insurance claim probably got rejected by the provider since you don’t have coverage for the specific damage your car has. Say for example your car got damaged from a flood or any natural disaster, your car insurance provider will not cover these expenses if you don’t have Acts of Nature/Acts of God as an option in your policy. Pretty straightforward right? That’s why you should always be mindful of what your policy covers and what it doesn’t when filing a claim. 

Insurance companies have added deductibles as a way to discourage car owners from filing claims for minor damages and fender benders.

The deductible is the amount that you have to pay out-of-pocket before you can make a claim. This amount is typically calculated as 0.5% of your car's fair market value (FMV) or a minimum of P2,000, but it's best to confirm the exact amount with your insurance provider.

For example, if your vehicle's FMV is P800,000, your deductible would be P4,000. If you're filing a claim for an amount less than your deductible allowance, your insurance provider will likely deny your claim.

Scam Inline

In case it needed to be said, don’t be slick and try to defraud your insurance provider by deliberately damaging your car.

The connection between a policyholder and their insurance provider is founded on mutual trust. You, the car owner depends on the insurer to provide financial protection for your vehicle in the event of damage or loss. In turn, the insurer trusts the car owner to act in good faith and submit honest and authentic claims. 

If the car insurer discovers fraudulent claims or you have deliberately damaged your car, they may deny comprehensive or third-party claims.

The law requires that anyone driving a car must possess a valid driver's license. Driving without a license could get you in trouble not only with the authorities but also with your insurance provider.

No insurance company endorses underage driving or driving without a proper license. Therefore, if the owner or driver of a car does not hold a valid driver's license, the insurer may reject a motor insurance claim and decline coverage for any loss or damage to the vehicle.

Drunk Driving Inline

Drinking alcohol in moderation and in the correct venues can be a fun and healthy recreational activity. Driving and drinking, on the other hand, is irresponsible, dangerous, and lethal. Driving while intoxicated, or under the influence of drugs, will get you in trouble with the law and your insurance provider. If you’re drunk driving at the time of the accident which you filed a claim for, your insurance provider will not think twice about rejecting that claim. Be a considerate human being, don’t drink and drive.

Car Repair Inline

In the event of an accident that damages your car, it is recommended that the vehicle should not be repaired until it has been inspected by a surveyor. Failing to adhere to this protocol and repairing your car before it has been surveyed, without informing the insurer, can lead to your insurance claim being denied.

The reason why is that the insurer needs to evaluate the extent of the damage sustained by the vehicle before authorizing any repairs. Repairing the car before it has been surveyed may result in the loss of important evidence of the damage. This evidence is necessary to determine the cost of repairs, which in turn determines the insurance claim's payout.

In some cases, if you bring your car to a sketchy repair shop for repairs before getting it surveyed could lead to additional damage being discovered down the line. If the surveyor finds these damages after the repairs, it becomes harder to know if they were caused by the accident or the repairs themselves.

Negligent Driving Inline

If your insurance provider determines that you were at fault for an accident, you can expect that you car insurance claim will likely be denied. Furthermore, if they discover that you could have taken steps to prevent the accident from happening in the first place, your claim may also be rejected. 

Driving safely and following the rules of the road can not only keep you alive, but it can also save you money. In instances where you encounter road rage, remember that discretion is the better part of valor, getting home safe, and with no scratches should always be your top priority as a driver.

After you sign off on your insurance policy, you should take some time to read through the fine print, as time-consuming as it may be. Being familiar with your insurance policy can help you avoid actions that could violate it.

Here’s why that’s important: if someone other than the insured and authorized driver was operating the vehicle during an accident, the insurance claim will likely be denied due to a violation of the policy. Additionally, accepting compensation from the at-fault party can result in the denial of your insurance claim. The reasoning behind this is that the insurance company will not cover expenses that have already been paid for through the compensation received.

Each car insurance policy has a specified expiration date. It is your responsibility as the car owner to renew the insurance policy before it expires. If the policy lapses or expires, the insurance company is not obligated to cover any damages to the car. Therefore, timely renewal of the policy is crucial, as providers will reject an insurance claim on this basis.

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