How To Evaluate Car Insurance Plans, What It Does Not Cover?
It becomes very worrisome for a policyholder when his/her claims get rejected .Not only that leads to repair and damage cost completely being paid out of the policyholders pocket but it also makes him/her think that renewing the policy next time is just a waste of money. But this is technically a misunderstood fact. Buying best car insurance policy is never a bad decision to make but subject to condition one put that effort makes the right evaluation of all plans available and try to understand what is covered and what is not.
The insurer might be smart enough write in bold letters what is being covered and write in fine prints all the terms and conditions which defines what is not covered. The mistake that a lot of policyholders make is not reading all these terms & conditions.
Understanding what is not covered by the car insurance plan can help a person to take the right car insurance buying decisions. Let’s try and understand the important things which your car insurance policy doesn’t cover and we think it is.
- Remember that , if you have only opted for third party cover just to comply with the rules, the same doesn’t cover any damage which would occur to your car in case of accident. A third party car insurance plan is only liable to cover the policyholder against claims raised by third party because of damage done to him /her by the car in consideration.
- We should remember a car insurance policy is just a year long contract. In case one forget to renew that plan right time or might have missed the renewal date by just a day, any damage happening during this period will never be entertained by the insurer. One need to make sure that the policy has to always renewed on time to take the best possible of the plan.
- If any person driving the car with the consent of the policyholder in a condition influenced by alcohol or drugs and any damage occured to the car during this state will never be covered by the insurer.
- A damage occurred to the car while being driven by a person with having valid driving license is never by the insurer.
- If damage to the car engine happens due to oil leakage is never cover under any type of car insurance plan even though the plan is comprehensive in nature.
- Every car manufacturer issues a guiding manual for its owners and if the insurer finds that the damage happened to the car due to the non compliance of guiding manual the claims regarding the same will never be honoured by the insurer.
- Any damage happening to car due to reasons like social unrest,terror attacks, foreign invasion etc are never honored under a car insurance contract.
- Damage occurred to the car because of reasons which the insurer finds deliberate in nature will never be honoured by the insurer. A very common example is when somebody mistakenly tries to start the vehicle in a water drowned situation and there is an engine damage corresponding that event , then the same is never by any type of policy that one takes.
The above mentioned are some of the most common situations when your insurer can disapprove your claim and but still it is necessary to read through the terms and conditions of the specific plan that you intend to buy because there may be some specific conditions under your policy. Read Relevant article: how to buy the right car insurance policy online ?
Another important thing that one should remember that if one feels that the claim being denied by the insurer outside the purview of the insurance contract then the same has to be raised within the court of law within 12 months of the event or otherwise the insurer holds no liability.