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Sheen Resources
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Having a car accident is stressful enough, but having your insurance claim denied? That’s a whole new level of frustration.
Whether you're in Melbourne or beyond, many drivers are surprised to learn that insurers can legally reject claims under specific conditions. But what are those conditions? And what can you do if your claim is unfairly denied?
In this blog, we break down the most common reasons car insurance claims are knocked back, what rights you have, and how Sheen can help you challenge a decision, all while getting your vehicle safely back on the road.
Reasons your car insurance claim might be denied
1. Driving under the influence
Drugs or alcohol in your system at the scene of an incident will immediately result in a car insurance provider denying a claim. Refusing to take a drug test will also void any claim related to the incident.
- This applies to L and P plate drivers, who need a BAC limit of 0.0% to drive.
- Common prescription drugs like Valium, Oxycontin, and Xanax can also void claims.
Stay away from your car if you have drugs or alcohol in your system. You are much more likely to cause damage, injury and death, and you will be financially and criminally liable for the consequences.
2. Restricted or unlicensed
When you take out a policy, you will be able to choose whether or not to include an age restriction on your vehicle.
- Selecting a minimum age (usually 25 years old) for your car insurance can save on premiums.
- If a younger driver has a collision, your insurance will be void.
If you are teaching someone to drive, or need one of your children to drive you around in the future, it might be worth not having a minimum age on your policy.
Driving without a valid license will absolutely deny any car insurance claim you make following an incident. If your license has expired, renew it before you get behind the wheel.
3. Unroadworthy or unregistered
Insurance policies are designed to protect against the financial fallout of road incidents. Gradual damage that occurs over time does not fall under this umbrella.
- Broken lights, tyres, brakes, windows, windscreens, mirrors, and doors must be replaced.
- Repair any scratches and dents as soon as you can.
- General wear and tear, such as rust, mildew, rot, and mould, can also affect an insurance claim.
- Tyres damaged by braking, cuts, and bulging might void your claim.
- If you modify a vehicle without informing your insurer, your claim may be rejected.
The same applies to unregistered vehicles. If your car's registration is outdated, you need to get it up to date. Although your insurance will still be active, a claim will be denied if it isn't registered.
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4. Recklessness or racing
If you've got a bit of a lead foot, you should consider dropping down a few gears. Reckless driving and racing will likely result in your car insurance denying a claim.
- Your insurance will not cover track racing, rallies, time trials, and endurance racing.
- Illegal street racing will void your claim and put you at risk of criminal charges.
- Even if you're excessively speeding and cause an accident, chances are your claim will be denied.
In the end, it's best to use common sense. If you're a motor racing enthusiast, buy insurance that covers your hobby and only race where it's legal. If you're just a regular driver, play it safe for yourself and everyone around you.
5. Overloading
Sometimes it can be tempting to squeeze one more into the back seat. This will not only put you in danger of causing an accident but will also make you liable for the damages that follow.
- Cars must not carry more passengers than they are designed to carry.
- A vehicle carrying a load must be secured and below the legal limit for the type of vehicle.
- All windows and mirrors must remain unobstructed if the load is contained within the vehicle.
Overloading a car is illegal. Car insurance will deny a claim for those who break the law.
6. Overdue payments
Falling into arrears is a sure way to deny your car insurance claim. Missing a bill and forgetting to pay can be a very costly mistake.
- Setting up direct debit is best to ensure your insurance is paid on time each month.
- If you're falling on hard times, your insurer has ways of offering financial assistance.
Make sure you budget for your insurance and other running costs every month.
7. Other incidents
Several other incidents may see your car insurance claim denied, including:
- 'Hiring' out your car to another party, like lending to a friend or working for a ride-share service
- Damage that occurs outside of the country
- Intentional loss and damage caused by you or another party acting on your behalf
- Accidental use of the wrong fuel or lubricant
- Unauthorised repairs by an unregistered party
- A driver leaving the scene of an incident
- Using the vehicles for unlawful purposes, for example, drug trafficking
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Need help with a denied insurance claim?
If your car insurance provider has denied your claim or you're unsure where you stand, Sheen Panel Service is here to help. For over 50 years, we’ve assisted Melbourne drivers with insurance claims and expert smash repairs.
From assessing vehicle damage to liaising directly with your insurer, we take the stress out of the process. Whether your claim’s been rejected or you want to ensure everything runs smoothly, our team is ready to get you back on the road faster.
Call Sheen Panel Service today to speak with a friendly specialist or upload your smash to get started.
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