When a claim is rejected, it is rarely because a customer has done something wrong on purpose.
Car insurance is designed to provide financial protection in the event of accidents, theft or damage, but claims are not automatically approved. In many cases, insurers reject claims because policyholders have not met specific policy conditions or have misunderstood what their cover actually includes.
One minute you’re driving to work, fetching the kids or running errands. Next, your car is at the workshop needing a major repair, with a quote you weren’t expecting.
Keagan Sloman, head of product and commercial at financial services provider The Unlimited, says that for those with a motor warranty, that’s usually the moment they breathe a sigh of relief and expect their cover to kick in. But when a claim’s rejected, the shock and frustration are real, especially when motorists don’t understand why the cover didn’t apply.
Stress of a rejected claim
“We take out cover because we want peace of mind. We want to know that when something goes wrong, we won’t be left to carry the cost on our own,” adds Sloman. “So, when a claim’s rejected, it’s more than just disappointing.”
He highlights that when a claim is rejected, it’s rarely because a customer’s done something wrong on purpose.
“It often comes down to not fully understanding what’s covered, what’s excluded, or what steps they need to take to keep their cover valid.”
7 reasons for a rejected claim
1. Skipping services or missing service records: If you skip a service or lose proof of service or repairs, your claim may be rejected.
How to avoid this: Stick to the manufacturer’s service schedule and keep all relevant documentation in a safe place.
2. Assuming everything is covered: One of the biggest mistakes people make is not knowing what their car warranty covers. Most cover applies to specific parts, under specific conditions, and there is a claim limit. If repairs exceed those limits, you may need to pay the difference.
How to avoid this: Before buying cover, ensure you understand exactly what is and isn’t included, and the Rand value of your cover for major components such as the engine, gearbox, turbocharger, and electrical systems.
3. Confusing the fault with normal wear and tear: Some parts are expected to wear out over time. Brake pads, tyres, wiper blades and clutches are common examples of everyday upkeep, whereas a warranty is generally designed to cover mechanical or electrical failures.
How to avoid this: Confirm how wear-and-tear items are handled and budget separately for everyday maintenance if necessary.
4. Ignoring warning signs or delaying action: Warning lights, strange noises, overheating or loss of power are your car’s way of asking for attention. By continuing to drive, or by delaying reporting, a smaller fault can quickly turn into a more serious and expensive repair, making it harder to assess what caused the problem in the first place.
How to avoid this: Stop driving if necessary, and report any faults to your warranty provider as soon as possible.
5. Approving the repair before the claim is authorised: When your car’s stuck at a workshop and you need it urgently, it can be tempting to approve repairs quickly. But if you give the go-ahead before your warranty provider has assessed or authorised the claim, it may be rejected.
How to avoid this: Follow the claims process carefully and wait for confirmation before repairs begin.
6. Undisclosed vehicle modifications: Modifications can affect how a car performs. If a change to your vehicle contributes to the failure, your claim may be affected. Not every modification will create a problem, but undisclosed changes can affect how a claim is assessed.
How to avoid this: Inform your provider of any plans to make modifications and check whether they affect your cover.
7. Using the car differently than declared: A car used for personal travel is not exposed to the same demands as one used for deliveries, ride-hailing or regular business travel. If the vehicle is being used differently from what was originally declared, it can affect the claim.
How to avoid this: Be transparent about the car’s purpose and update your provider if that changes.