5 Factors That Might Lead to a Plunge in Car Insurance Claims

5 Factors That Might Lead to a Plunge in Car Insurance Claims

5 Factors That Might Lead to a Plunge in Car Insurance Claims

There is a saying about insurance premiums and insurance claims that distinguishes between them. The saying relates insurance to both liability and asset. Insurance is a liability when the policyholder pays premiums and an asset when there is a claim.

An insurance claim is a written note by a policyholder to insurance companies for compensation on coverage or insured properties. Claims are subject to the decisions of insurance companies and may be approved or unapproved, according to Collected.Reviews.

Since not all insurance claims are approved, not all insurance claims, therefore, are assets. Car insurance, especially, among other insurance is known to home records of unapproved claims due to several reasons among which is not reading reviews of car insurance plans.

If you’ve been out to get car insurance or you already have and want to turn your claim into an asset, here are 5 factors you should look at.

1. Premiums:

The first factor that affects your claim is when your premiums are not regular or updated. Irregular premiums may be overlooked with fines, but outdated premiums might lead to the denial of your insurance claims. However, the denial is not done outrightly. There must have been periods of grace by the insurer, say 15 days of notification in which you are allowed to organize your premiums and justify the dates before claim recovery.

2. Non-transparency:

Insurance companies require you to be perfectly transparent in your dealings that any non-disclosure of details or information related to the insurance could lead to the denial of your claims. For instance, you need to be open about your medical condition as it affects your driving. You also need to keep your insurance company updated about vital information essential to your insurance policy.

3. Recklessness:

Recklessness has no claim in the insurance companies alongside its allies such as drinking under influence before driving. Basically, obeying simple instructions as stipulated by the law can save you a lot of insurance blemishes. You are providing your insurer the opportunity to reject your claim if you drive recklessly by going beyond the speed limit or if you’re caught driving under the influence of alcohol.

4. Roadworthiness:

Expecting an insurance claim with unroadworthy vehicles might be a tall order. Your car must be properly maintained and should follow the list of guides and items needed for roadworthiness by the National Road Traffic Act. For instance, your VIN and the engine should match and all your vehicular documents must be complete.

5. Non-driving Driver:

If you were to review your insurance plans before signing, you would notice where some insurers stipulated the regularity of driving. Some companies want certain drivers only in the insured vehicle that any other driver might lead to complications of insurance claims in the event of an accident or a warranting situation.


Insurance claims could be an asset to you unless rejected. One reason you could have your claim denied is when your premiums are not up-to-date. Save yourself the blemishes by reading reviews of your insurance documents and plans.

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