Why Car Claims Are Rejected

THE 10 most common reasons for rejection of car insurance claims.

- Vanessa Papas

IN 2004 Sylvester Stallone’s 1950’s Mercury Custom, estimated at $250 000, was stolen from his garage. Other celebs who’ve also had their cars nabbed include John Schneider, Graham Norton, Ryan Sheckler, Rod Stewart, Charlie Sheen and Kanye West. Then there are those who have had their vehicles damaged in accidents, including Arnold Schwarzenegger and his son, Patric. In 2006 the two were involved in a motorcycle accident. Arnold received 15 stitches in his lip. He had previously had a motorcycle accident in 2000, which resulted in six broken ribs and a four-day hospital stay. Car theft and hijackings happens. Accidents happen. The last thing you should be worried about is whether or not your car insurance will pay up. Christelle Colman, managing director of Elite Risk Acceptances, unpacks the 10 most common reasons for car insurance claims being rejected by South African insurers.

Driving Recklessly Or Under The Influence: Driving under the influence of alcohol or drugs is a criminal offense; as such, motorists who are caught driving under the influence risk having their cover immediately nullified. However, an insurance claim can also be rejected if a driver is believed to have acted in a reckless manner and this behavior is believed to be the cause of damage to or destruction of a vehicle.