There have been too many instances where people have been in a car accident, or had other car trouble including a stolen car, and even though they are insured, their insurance won’t pay out. This is why we cannot reiterate enough how important it is to not only read a contract from top to toe, but to also read all the Ts and Cs of any contract before you sign, as this is where many loopholes to contracts can be found.

There have been too many instances where people have been in a car accident, or had other car trouble including a stolen car, and even though they are insured, their insurance won’t pay out. This is why we cannot reiterate enough how important it is to not only read a contract from top to toe, but to also read all the Ts and Cs of any contract before you sign, as this is where many loopholes to contracts can be found.

From comprehensive cover to limited cover or third-party cover, each type of car insurance policy comes with its own options and benefits (you can read more here), however there are certain reasons why your insurance won’t pay you out.

  1. You don’t have your license
  2. Your vehicle was not roadworthy – for example, you are in an accident but the insurer finds out that your tyres were smooth, so your claim will be rejected
  3. You were driving recklessly – for example you were speeding or you ignored a red robot
  4. You were driving a car that you don’t usually drive – some policies will only cover the regular driver of the car
  5. Some policies will not pay out if your car is a believed to be a total write-off. This is known as total-loss policy
  6. Certain insurance providers will insist that you install a telematics data reader into your car, which is used to track your car if it is stolen and monitor the way that you drive. If the device shows reckless driving, you will not be paid out
  7. There is no tracking device installed in your car – there are numerous options to choose from including Tracker, Netstar or Car Track
  8. No car inspection took place when you initially took out your policy
  9. Your car was damaged while using it for business purposes but you never told your provider that you would use it for business.
  10. You car was not parked in a safe place when it was stolen
  11. There is no security device installed in your car – for example an alarm or an immobiliser

Other reasons that you won’t be able to claim from insurance include:

  1. There was a break in your car insurance policy – i.e. your car wasn’t insured for a certain period of time
  2. Claims that you have submitted before were rejected
  3. You don’t pay your insurance company regularly or on time

What we are saying is don’t take the first car insurance deal that comes your way. Compare quotes and policy benefits that suit your pocket and needs best and don’t forget to read, read, read the Ts and Cs of every contract.