New research by Go.Compare Car Insurance has revealed that over £47 million worth of motor insurance claims were unsuccessful during the second half of 2021.
Using Financial Conduct Authority (FCA) data, the insurance comparison site calculated that more than 14,000 motor insurance claims were rejected between July and December of 2021, equating to millions in missed payouts for drivers.
With over 1.7 million insurance claims having taken place during this period, unsuccessful cases amounted to just 0.8%, yet represent a huge sum of money lost. Some common reasons car insurance claims may be rejected include:
- Out-of-date information, such as an expired MOT or not updating an address
- Filing a claim too late – if an accident takes place, the insurer should be informed within 24 hours, as a general rule
- The policy is held by someone other than the main driver, as this counts as insurance fraud
- Negligent behaviour, such as driving irresponsibly or not performing maintenance checks
- Using the car for anything other than what is specified in the policy, such as using it to commute when it’s only covered for social use
- Modifying a vehicle without reporting it to the insurance company
Other factors that may result in an unsuccessful claim include claiming for something that is not covered under the driver’s policy, and not keeping up with premiums, as this can void insurance.
Ryan Fulthorpe, car insurance expert at Go.Compare, said: “£47 million is a massive amount of money to be rejected, especially if it’s due to easily avoidable mistakes. 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. Equally, you should make sure you have the right type of cover for your vehicle, and that you are adhering to the conditions of your policy.
“If you believe your claim was unfairly rejected, the first thing to do is check your policy’s terms and conditions and the information you provided in your claim”, Fulthorpe added. “You can then proceed through the official complaints process of your insurer, providing as much evidence as possible to support your case. I suggest keeping a record of all correspondence.
“If the complaints process doesn’t help resolve your unsuccessful claim, you can then go to the Financial Ombudsman Service. It’s free to use, and if they agree with your complaint, they can overturn your insurer’s decision to reject your claim.”