Your Car Insurance Claim Can Be Rejected If You Do Any of These 10 Things

When you’ve paid your Car Insurance premiums month after month, it’s natural to assume that your insurer will support you when the time comes to submit a claim. But the truth is that not all claims are approved. In fact, thousands of drivers in South Africa face a rejected car insurance claim every year. Discover more about why your claim can be rejected, and how to avoid it with these tips from 1st for Women.  

When car insurance claims get rejected

According to the Ombudsman for Short-term Insurance, insurers frequently reject claims when policyholders fail to meet the terms of their contract. Understanding why claims are rejected is essential if you want to avoid the stress and financial impact of a declined payout.

Below, 1st for Women outlines the most common reasons for car accident insurance claim rejection, what they mean for you, and how to avoid them.

What does rejection mean in a car insurance claim?

A claim rejection means your insurer refuses to process your claim because you haven’t met certain contractual obligations of your policy. This is different from a claim denial, which occurs when your policy excludes the type of incident you’re claiming for.

For example:

• A rejection might occur if you didn’t pay your premium or provided false information.

• A denial might occur if your policy doesn’t cover business use, but you used your private car for company deliveries.

Understanding this difference helps you know where you stand when dealing with your insurer.

10 common (and avoidable) reasons your car insurance claim can be rejected

Here are ten mistakes that could result in your claim being rejected:

1. Missing premium payments

If your debit order bounces or you forget to make a payment, your cover could lapse, leaving you uninsured. Always double-check your payment dates and contact your insurer immediately if you anticipate issues.

2. Delaying your claim submission

Insurers give you a specific time frame to lodge a claim, often within 30 days of the incident. Waiting too long could invalidate your claim. Report accidents or theft to your insurer as soon as possible.

3. Providing incorrect or outdated information

Your insurance policy relies on accurate information. Moving to a new address, changing your parking arrangements, or adding security features must all be reported. Failure to do so may lead to rejection.

4. Letting an unauthorised driver use your car

If someone not listed on your policy drives your car and has an accident, your insurer could reject the claim. Always add regular drivers as secondary drivers on your policy.

5. Neglecting vehicle maintenance

A poorly maintained vehicle is a higher risk on the road. Missing services or ignoring roadworthiness issues, such as worn tyres or faulty brakes, may give your insurer grounds to reject a claim.

6. Skipping the initial vehicle inspection

When you take out Car Insurance, many insurers require an inspection to document your vehicle’s condition. Avoid delays. Book your inspection promptly to ensure your policy is valid.

7. Reckless driving or driving under the influence

If you drive under the influence of alcohol or drugs, your insurer will not pay out. The legal blood alcohol limit in South Africa is 0.05g per 100ml. Even if you “feel fine,” exceeding this limit could void your cover. Distracted driving, such as texting at the wheel, can also be considered reckless.

8. Leaving the scene of an accident

South African law requires you to stay at the accident scene until police arrive. Leaving without reporting the incident may result in your claim being rejected — and could lead to criminal charges.

9. Insufficient cover

Not all policies cover all risks. For example, using your personal car for business purposes without business insurance cover could result in rejection. Make sure your policy matches your lifestyle and driving habits.

10. Failing to install recommended security measures

Some policies require you to have a tracking device or immobiliser installed. If you don’t meet these conditions, your insurer could reject theft-related claims.

What to do if your car insurance claim is rejected

If your car accident insurance claim has been rejected, you still have options:

• Appeal directly to your insurer: submit a written complaint with supporting documents.

• Request an independent assessment: A loss adjuster can provide an impartial report.

• Escalate to the Ombudsman for Short-term Insurance: This body can help resolve disputes between policyholders and insurers.

• Seek legal advice: In certain cases, you may need legal support to challenge the rejection.

The key is to act quickly and provide as much evidence as possible.

Avoid car insurance claim rejections with 1st for Women

At 1st for Women, we know that women face unique challenges on the road. That’s why we’ve designed our Car Insurance to go beyond traditional cover. With benefits like Guardian Angels on Call, you’ll never face roadside or claim-related issues alone. By choosing 1st for Women, you gain:

• Flexible Car Insurance options tailored to your needs.

• Assistance when you need it most, from emergencies to everyday inconveniences.

• Added peace of mind knowing you’re backed by an insurer that understands women.

Discover the right way to submit an insurance claim with 1st for Women. 

Final thoughts on insurance claim rejection 

A rejected car insurance claim can be financially devastating, but most rejections are avoidable. By paying your premiums, keeping your details updated, maintaining your car, and driving responsibly, you dramatically improve your chances of a successful claim. Protect yourself against the unexpected with car insurance from 1st for Women. Get a quick, hassle-free Car Insurance quote online today and experience insurance with real women-focused benefits.