What if Your Car Insurance Claim is Turned Down?
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There are times when your insurer may refuse to pay out for all or some of a claim, but there will be reasons for them to refuse. Here are some typical examples of why claims might be turned down, and what you can do if your claim is turned down and you disagree with the decision.
If things from your car or your car itself are stolen and your insurer has reason to think that you were at fault, for example because they think you are lying or if you failed to lock the car properly, then they may refuse to pay for the stolen items. If the insurer thinks you are not being honest about what was taken, or the circumstances in which it was stolen, then they are likely to refuse your claim.
Similarly, if your driving leads to an accident and you are found to have been speeding or drunk at the wheel, your policy will usually be invalidated and you will not be covered. Most policies have clauses that say that you are only covered if you act responsibly and do not break the law.
Ensure that you use all the security on your car and that you keep proof of purchase for valuable items like mobile phones and golf clubs. If items are stolen from your car but are covered by your home insurance, your car insurers may refuse your claim because they feel that your other policy is more appropriate to cover your losses.
If you have a classic car, it may have cost you more to restore the vehicle than its the book value. Always double check the terms and conditions, and try to haggle if you think the insurers are under valuing your car.
Read the small print before purchasing any car insurance policy. It is important to be aware of any exclusions, for example most policies do not cover you if you take your car abroad.
You may also find that your policy will cover you for theft of some items but exclude others such as golf clubs. Items damaged or taken from a roof rack may also be excluded.
If you are not happy with your insurers decision and have not been able to get anywhere by discussing your concerns with them, you can turn to the Financial Ombudsman Service. This is an independent organisation which mediates between customers and insurance companies when there are disputes over claims. You must exhaust your insurers own complaints procedure before the Ombudsman will get involved.
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