Reasons Why Car Insurance Claims Are Rejected in the Philippines
The concept of non-life insurance is yet to be embedded in the consciousness of Filipinos. However, there are still those who seek the help of car insurance companies, given the number of possible mishaps that they’ll encounter on the road. There are many ways on how your car could get damaged, and you end up taking care of the car insurance claims. What you have to realize is that not all claims will be successfully processed. There will be claims that will be denied.
Before you even get furious and place a negative review of a company, here are the common reasons why your car insurance claims are most likely rejected.
No inclusive coverage
Do you have to review what are types of coverage you purchased? Do you have an Act of God coverage, in case your car has been flooded? Or perhaps, you purchased it with liability car insurance together with collision coverage? Before you make a claim, it is imperative to know what are the ones included in what you purchased.
Who is insured?
Let’s say that your 17-year-old son just learned how to drive and decided to take the car for a joyride. Most likely, any accident that will happen while he is holding the wheel will not be covered by the insurance company. From the cheapest car insurance premium to the most expensive, it is imperative to know the names of drivers who are going to be included in the insurance policy.
No driving license
It is elementary that you need to have a license when you drive. Keep in mind that driving on the road is on paper a privilege and not a given right. A license is synonymous with being capable of driving safely for yourself and others using the public roads. Now, if you had an accident without a license, regardless if you left it in your house, or it expired, you will not be covered by an insurance firm.
Policy limits
Don’t expect a great amount of compensation from the cheapest car insurance premium offered by the company. There are times when the damages are expensive and already exceeded the insurance that you purchased. Given this scenario, you may not receive the entire amount that would cover the damages. However, looking at the bright side, you still get assistance, somewhat.
Private or commercial use
Whether you bought the cheapest car insurance premium or the most expensive, car insurance policies are specific. Private cars are normal vehicles that you use either for recreation or for day to day work. On the other hand, commercial cars are used as taxis, UV Express, etc. As a rule of thumb, commercial car insurance is more costly than your ordinary car insurance for a private vehicle given the fact that it faces more risks on the road. Now, if you decided to make use of your private vehicle for commercial use, this will violate the terms on your contract.
You clearly violated the law
Another common problem that people will face is the run-ins with the law. If you parked in a no-parking zone for instance, or if you are drunk driving, then most likely you are not going to be covered.
If you’ll be getting a car insurance policy, the first rule of thumb is to compare and know what you really need. It is the reality that affordable car insurance may not always be the best option for you. These days, you have no reason to not compare the policies out there in the market. From the cheapest car insurance premium to the most expensive, you need to scrutinize everything to see what you are really getting.
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