Car insurance is essential for every vehicle owner, but having a policy alone doesn’t guarantee that your claim will be accepted. Many times, insurance companies deny claims, leaving customers to bear the repair costs from their own pockets. This can be both financially and emotionally distressing. To help you avoid such situations, here’s a look at some common reasons why car insurance claims get rejected and how add-on covers can make a huge difference.
1. No Tire Protection Add-on
One of the most common add-ons people overlook is tire protection. Many believe their basic car insurance covers everything, but that’s not always the case. Tires, for instance, aren’t typically covered. If your car’s tire gets damaged due to bursting or tearing, you’ll have to bear the cost of replacement unless you’ve opted for the Tire Protection Add-on. This extra cover ensures that you won’t have to pay anything for a new tire, protecting you from unexpected expenses.
2. No NCB Protection
If you’ve ever made a claim, you know that your No Claim Bonus (NCB) resets to zero afterward. This can lead to higher premiums the following year. However, if you have an NCB Protection Add-on, one claim won’t affect your bonus, allowing you to maintain your discount and save money on future premiums. Without this add-on, making even a single claim can cost you more in the long run.
3. Loss of Personal Belongings Not Covered
People often leave valuable items like mobile phones, laptops, or other electronics in their car. In case of theft, your basic car insurance policy won’t cover the loss of these items. The Loss of Personal Belongings Add-on provides coverage for items like mobiles and laptops, but it doesn’t include cash or jewelry. It’s important to note that you’ll only receive compensation if you have the original bill for the stolen item.
4. Engine Protection Not Included
Many car owners assume that engine damage is automatically covered under their basic insurance. However, the reality is that engine failures or water ingress damage aren’t usually covered unless you’ve opted for the Engine Protection Add-on. Without this, any repair or replacement of the engine components will have to be paid out-of-pocket. Engine repairs can be extremely costly, so having this add-on is a wise choice, especially if you live in areas prone to waterlogging.
5. Consumable Cover Missing
When your car goes for repairs, certain expenses fall under “consumables” like engine oil, lubricants, nuts, bolts, and screws. These small parts add up to a significant amount, and most basic insurance policies do not cover them. If you don’t have the Consumable Cover Add-on, you’ll have to pay for these out of your pocket. This add-on ensures that even the smallest repair-related expenses are covered. However, note that this cover is usually only available for cars that are less than five years old.
6. Lack of Proper Documentation
Even if you have all the necessary add-ons and your claim is valid, missing or incorrect documentation can lead to rejection. It’s crucial to have all your paperwork in order, including bills for personal belongings, proper claim forms, and a valid driver’s license at the time of the incident. Failing to provide any of these documents can delay or even result in the denial of your claim.
7. Delay in Filing the Claim
Insurance companies typically have a limited window within which claims must be filed. If you fail to report the incident or submit the claim within the prescribed time frame, your claim can be rejected. Always inform your insurer immediately after an accident or incident to avoid any complications.
Understanding the Importance of Add-On Covers
While a basic car insurance policy covers the major expenses of an accident, it often leaves out important areas where you could end up paying large sums of money. Add-ons like Tire Protection, Engine Cover, Consumable Cover, and NCB Protection can bridge the gap, ensuring that you’re fully protected. These add-ons come at an extra cost but can save you from significant financial loss in the event of a mishap.
It’s always better to understand your policy thoroughly and choose the right add-ons based on your needs. With the proper coverage, you can drive with peace of mind knowing that most of the repair and replacement costs will be taken care of by your insurance company.
