What to do if Your Car Insurance Claim is Refused

If there are reasons for an insurer to think they should not have to pay, they may turn down your claim. Here are some typical reasons for claims to be turned down, and what to do if this happens to you and you are unhappy about the decision.

If your car is stolen, or things from inside your car are taken, your insurer may refuse your claim for the stolen items. This would happen if for example your insurer thought you had not locked your car properly, or if you were lying about what had happened. If the insurer has evidence that you are being dishonest about exactly what was taken, or the circumstances in which it was stolen, then your claim will probably be refused.

Similarly, if your driving leads to an accident and you are found to have been speeding or drunk at the wheel, your policy will usually be invalidated and you will not be covered. Most policies have clauses that say that you are only covered if you act responsibly and do not break the law.

Make sure that you lock your car, and use any other security precautions that you have told your insurance company about. For example, if you say your car is kept overnight in a garage then make sure that you do. Keep proof of purchase for valuable items like mobile phones and golf clubs. Another reason for car insurers to turn down claims for stolen items is if they are also covered by your home insurance, in which case they might argue that your other policy is more appropriate to cover your losses.

If you have a classic car, it may have cost you more to restore the vehicle than its the book value. Always double check the terms and conditions, and try to haggle if you think the insurers are under valuing your car.

Read the small print before purchasing any car insurance policy. It is important to be aware of any exclusions, for example most policies do not cover you if you take your car abroad.

You may also find that your policy will cover you for theft of some items but exclude others such as golf clubs. Items damaged or taken from a roof rack may also be excluded.

If you dispute your insurance company's verdict and you have not been able to get a satisfactory outcome by raising your concerns to their attention, as a last resort you may wish to contact the Financial Ombudsman Service. You need to show that you have done everything you can to negotiate with the insurance company itself before the Ombudsman will get involved. The Ombudsman is an independent body whose role is to act as a mediator when customers and insurance companies disagree over a claim. This is cheaper and faster than legal action, and gives both parties a chance to reach a compromise.