QUESTIONS & ANSWERS
NON-DISCLOSURE OR MATERIAL MISREPRESENTATION
You must tell your insurer about previous accidents and claims, and if you have a medical condition such as epilepsy that can affect your driving. If you don’t when it comes to claim time your insurer can reject your claim on the grounds of non-disclosure.
You also need to keep your insurer up to date on your personal information such as your address.
IS THE EXCESS PAYABLE EVEN IF THE CLAIM WAS NOT MY FAULT?
Generally, yes, it is. The excess is an agreed condition of your insurance and is payable if you claim under the policy. Some insurers may waive the excess when a third party is clearly to blame and liability has been accepted by the third-party.
DRIVING RECKLESSLY OR UNDER THE INFLUENCE
If you drive under the influence of alcohol you are breaking the law and your insurer can reject your claim. The same goes for driving recklessly which is when you don’t show any care for other road users. So, if you are texting and driving you are driving recklessly. Your insurer can reject a claim if something happens while you are doing this. Speeding is another no-no. Keep to the speed limits.
TELEMATICS DATA SHOWS DRIVER FAULT
Telematics is technology that can be used to track and recover your vehicle if it is stolen, and/or monitor your driving behaviour. Some insurers insist on you fitting a telematics device to your vehicle.
The data gleaned from a telematics device can show a breach of speed limit or reckless driving leading up to an accident, which can result in your claim being rejected – and it is difficult to dispute the evidence.
But some insurers use telematics to reward good driving. In other words, telematics can be used as a carrot or a stick.
Make sure you know how the insurer is going to use this information.
PRIVATE VEHICLES USED FOR BUSINESS
Most vehicles are insured for private use, which includes using it to get to and from work on a daily basis as well as for social purposes. It excludes any meetings you need to drive to or clients you visit. So, if you have an accident while driving to a client meeting your insurer can reject your claim. If you insure your car for business use as well, you are covered for these trips.
VEHICLE INSPECTION NOT CARRIED OUT
Most insurers insist that your vehicle is inspected when you take out a policy. This is to check for any pre-existing damage. If this inspection is not done, you are in breach of contract and your claim will be rejected.
TIPS TO REDUCE THE CHANCES OF YOUR CLAIM BEING REJECTED
- Read the fine print: Know and understand the terms and conditions of your policy including terms such as the excess, exclusions and whether other drivers are covered.
- Be honest and upfront: Don’t withhold any information from your insurer. Be honest about previous accidents, who will be driving the car and if the car will be used for business purposes.
- Keep your vehicle well maintained: Keep up to date with services and maintenance and have a record of these to show your insurer.
- Drive responsibly: Any reckless behaviour that leads to an accident could see your claim being rejected so obey the law and the rules of the road.
- Stick to your promises: If you stated, for example, that the vehicle is kept in a locked garage at night, don’t park it outside.
UNLICENSED OR UNSPECIFIED DRIVERS
Some policies only cover the regular driver of the vehicle. So, your insurer can reject a claim if someone else has an accident while driving your car or the car is stolen. Tell your insurer if someone else will be driving your car and give them the driver’s details. And if your car is being driven by an unlicensed unsupervised driver, your insurer can reject your claim.
