Paying for a Car warranty coverage only to have your claim denied when a problem occurs can be an incredibly frustrating experience. A car warranty coverage aims to bring peace of mind and take care of unexpected pricey repairs. But unfortunately, we have seen countless customer complaints regarding denied claims.
Driving scenarios and road events are unpredictable, so vehicle loss or damage can be inevitable sometimes. However, finding ways to resolve vehicle troubles while effectively managing the financial implications is still possible. Car insurance and the benefits you can avail of during complex road events (For example, car collisions, high-impact events, vehicle damage due to harsh weather, etc.) depends on the policy type. Motor warranties offer a vehicle broader coverage compared to other policies like third-party property damage and fire and theft.
So, it is best to assess your vehicle needs, usage, value, and budget, then compare the benefits of various policies before signing up. Also, while you consider purchasing the best fit policy, help yourself by reading answers to some of the common questions surrounding car insurance claims we have mentioned below.
1. If I raise a claim, will my premiums increase during renewal?
Vehicle insurance premiums depend on several factors, and your claims history can be one determiner among many others. For instance, if you are the at-fault party wanting to make a claim, your risk rating will shoot up, and so will your premiums. On the flip side, if you make a claim when your vehicle is damaged due to extreme weather events like floods, hail storms, or fire incidents, your risk rating will not be affected.
2. Will no-fault claims be recorded in my insurance claims history?
Every claim will be recorded in your car insurance claims history, whether at fault or no fault.
3. For how many years will my claims be on the record?
All your claims will stay on record depending on the nature and criticality of a road incident, your insurance company’s rules, and state regulations. When we say all claims, it includes successful, denied, withdrawn, and canceled claims.
4. Is a police report mandatory to file a claim?
When you file a claim for vehicle loss/damage due to theft, attempted theft, malicious damage, or a road event where the opposite party failed to provide necessary details, you must furnish a copy of the police report or report reference number.
5. What to do when my insurer denies a claim?
Seek help if you have concerns about your insurer’s decision at any point in time. Dial the customer care number and speak to them over a quick call to resolve any disputes. Also, you can send a mail to the specified customer service email id for clarifications regarding claim denial. At the same time, you can read your comprehensive car insurance policy’s disclosure statements to know particular grounds when your car insurer can deny a claim.
6. Read and understand your motor warranty insurance.
An extended car warranty is a multi-page document that explains warranty terms and coverage. Make sure that you understand entirely any extended warranty insurance you sign. Only buy a warranty if you need clarification about what a warranty covers. Mostly any extended warranty insurance does not cover a standard set of exclusions. Most extended warranties will not include the following :
- Covered parts damaged by non-covered parts
- Any vehicle that is involved in a severe mishap and has been given a salvage title
- Glass parts like mirrors and windshields.
- Exterior trim
- Interior upholstery
- Latches, hinges, bulbs, and fuses
An exclusionary warranty contract explicitly lists all the parts that are not covered. Therefore, read your warranty cautiously and understand the details on any such list.
Keep up with regular maintenance.
To reduce the chances of the requirement to file a claim, regularly maintaining the car is often a condition for any extended warranty insurance. For example, your lawsuit will only be allowed if you have followed your vehicle’s factory-recommended service schedule or missed an oil change.
Choose the right service provider.
The first few tips are steps you should take before a breakdown occurs. These are the essential tips for ensuring your extended warranty insurance claim is approved.
It’s no secret that some car warranty dealers offer below-par coverage. When it’s time to file a complaint, some extended warranty insurance companies will do everything they can to avoid paying. However, not all companies work this way. Some providers have an excellent customer service reputation and are known for paying out customer claims. You can check the dealer’s reputation online and customer complaints posted. Remember that, like any company, car warranty coverage providers will likely have their share of denied claims and bad reviews. You can read customer complaints for yourself. Leading extended car insurance companies will address all complaints, usually to the consumer’s satisfaction. Denied claims are often the result of buyers’ ignorance in understanding their policy and what is and needs to be covered.