Drivers are losing out on millions of pounds worth of claims with car insurance companies rejecting almost £50million worth.
In the second half of 2021, more than 14,000 motor insurance claims were rejected, totalling more than £47million in total.
Based on data from the Financial Conduct Authority, over 1.7 million insurance claims were lodged between July and December 2021.
While unsuccessful cases amount to just 0.8 per cent, they represent an enormous amount of money being lost.
Drivers should tell their insurers of an accident within 24 hours
PEXELS
Some of the most common reasons why car insurance claims are rejected include having out of date information, like an expired MOT or not updating an address.
People may also file a claim too late, with a general rule being that insurers should be informed within 24 hours to get the process started.
Motorists could also be caught out if the car is not being used for what is specified in the policy. This could include motorists using the car to commute when it is only covered for social use.
Ryan Fulthorpe, car insurance expert at Go.Compare, said the rejected claims represented a “massive amount of money”, especially when it comes to “avoidable mistakes”.
He added: “Reading the terms and conditions of your insurance policy carefully and making all your payments on time are the two most essential things you can do to avoid having a claim rejected.
“Keep any direct debits and bank details updated to make sure you don’t accidentally miss an instalment.
“Taking precautions to avoid invalidating your insurance will also help ensure your claim is accepted.
“It’s important to file any claims within the right time frame, the sooner the better, and to double-check that all your information is up-to-date and correct.”
Drivers should also make sure they have the correct type of cover for their vehicle and are adhering to the conditions of the policy.
If people believe the claim was unfairly rejected, they should check the terms and conditions of the policy and proceed with an official complaint through the insurer.
In the same way that drivers should include as much detail as possible for a car insurance claim, they should have as much evidence as possible to support the case, including a record of all correspondence with the insurer.
Ryan Fulthorpe suggests that drivers can go to the Financial Ombudsman Service if this does not work, with motorists potentially getting the initial decision overturned.
LATEST DEVELOPMENTS:
The average price of car insurance is now £511
PA
This comes as car insurance premiums have rocketed by more than 20 per cent over the last year, with drivers paying an average cost of £511 for cover.
