Everyone knows about the crowded roads of Singapore. When it is crowded, accidents are bound to happen. Everyone, of course has a Car Insurance, but did you know thousands of claims are rejected because of policy exclusions or a breach of conditions?
Know your coverage before buying Car Insurance
It pays to review carefully what is actually covered by your plan before buying or renewing your car plan and what is not. That sounds like a chore or even a waste of time, right? Who has the time to review all the small print and who cares? We got you. At Insurance Market we are here to help. We have done the analysis, quality rating and comparison for you. Just put in your car details, sit back and enjoy the overview. Our hard work will save you time and money down the road.
So what are the Top 6 reasons a Car Insurance Claim is rejected? Where did the ignorance prevail? Here we go:
1. The vehicle is not roadworthy
For instance, your wipers seem minor things but are an integral part of roadworthy requirements. If you are in an accident and it was caused by vision being obscured due to wipers or other parts of your vehicle not working properly, the insurer can kick your claim to the kerb.
2. One too many after-work drinks
If it is discovered that alcohol was the cause of an accident, any related claim will automatically be rejected. Do not drink and drive.
3. An unlicensed driver was behind the wheel
Letting others drive your car is your choice. But if they’re involved in any accidents while behind the wheel and are not covered under your policy conditions, or do not hold a legally valid driver’s license in Singapore, your insurer will not cover the cost of the damages or liability.
4. The vehicle was not used in accordance with policy conditions
Many policies have restrictions and when and what the car is used for. For instance, you may have told the insurer you will not use it for commuting. If then after a few months you change jobs and the commute will now need the use of your car, you will have to change your cover. Equally many insurers will not be sympathetic to you using your car for work-related activities, like running an errand for your boss. If you do, you better check your policy first.
Also read: When Car Insurers Don’t Pay
5. You illegally modified your car
You’ll also notice that your insurance policy has a clause that says it won’t pay out if your car has modifications that are not approved or reported to the Land Transport Authority. You must inform your insurer if you make any modifications to your car. Many insurers consider modifications made to a car as material information in deciding what premium to charge for a policy; some insurers may also not wish to insure modified cars. Accessories are parts of your car which are not directly related to how your car operates and will not impact your Car Insurance coverage, however. This includes upholstery, audio equipment, multimedia equipment, communication equipment, personal computers, satellite navigation and radar detection systems, provided they are permanently fitted to the car and have no independent power source.
6. You failed to report an accident
Under the Motor Claims Framework used by car insurers in Singapore, failure to report an accident to them within 24 hours will affect your No Claims Discount and prejudice your claim. Your insurer may even deem you to have breached policy condition and hence reject your claim completely. Make sure you know what your Car Insurance Cover is.
Your next step
Knowing the top 6 seasons car insurance claims are rejected, you are able to file your claim correctly. But before you claim, make sure you select a Car Insurance policy that suits your needs. Maybe even better drive carefully so you won’t be in need to claim.