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Car insurance helps people hedge against the possible losses that might occur during a specific period of time, usually one year. The policyholder can renew the same policy or switch to a new policy at the end of the policy period. But there are some cases when the insurer might choose to deny the claim. Mentioned below are certain scenarios in which the insurance provider might deny the claim of the policyholder, they are as follows:

Misinformation or Hiding Information

When the policyholder hides certain valuable information from the insurer at the time of buying the insurance he/she might be denied a claim. Providing false information at the time of buying car insurance in the UAE can result in the insurance company denying the customer's claim.

Customer Forgets to Pay Premium

When the customer forgets to pay the premium installment for the car insurance bought by him/her the insurer might not honor the claim. Many people in the UAE buy car insurance online to avoid this mistake. People are very busy and when they prioritize their activities they might forget to pay the premium eventually leading to their claims being denied by the insurer.

Online car insurance usually comes with a recurring payment option that makes automatic payments from the policyholder's account as per the insurance requirement and the instruction of the policyholder. This ensures prompt uninterrupted payments of insurance premiums to the insurer.

Breaking the Law

Car insurance companies in Abu Dhabi and across the UAE will not entertain claims that were a result of unlawful activity. Pulling over for speeding, drunk and driving, or possessing unlawful substances in the car, etc can lead to severe penalties and in some cases jail sentences. All these unlawful activities will create a bad impression reflecting about the policyholder resulting in the policyholder paying a higher insurance premium.

Claiming Items Not Covered Under the Insurance

When the policyholder claims for an item not covered by his/her insurance policy then in such cases the claim will be rejected by the insurer. It is very important that the policyholder takes enough time to research and understand the length and breadth of cover offered by the policy before committing to the same. Do not always look for cheap policies as the cover offered by them would be very less. Please go for add-ons if the existing policy does not fully cover all your requirements. This way the policyholder can rightfully claim for the damages caused by the insurer.

Delay in Reporting the Incident

In the time of an unfortunate event, it is very important to contact the insurer and the police as fast as possible. Some car insurance companies in Abu Dhabi even have a mandatory reporting period. If the policyholder does not report the unfortunate event within the mandatory reporting time frame the insurer has the right to deny the claim. This is on grounds that the damages to the car might be the result of complications arising from the immediate non-attending to damages caused by the accident.

Policy Limit Exceeding

Every insurance policy has a set limit. The information with regards to the limit of the policy cover will be clearly elaborated in the policy document. The policyholder needs to read the policy documents very carefully before committing to the same. No matter what or how much the damage, the insurer will cover the policyholder only to the limit mentioned in the policy document. The excess amount will have to be borne by the policyholder from his/her own pocket.