Just like any other insurance policy, there are a number of reasons why insurers can deny your GAP insurance claims. There are very specific terms and conditions that need to be met that are outlined by insurers and, as a client, you need to fully comprehend. This is why it is very important to read your documents, especially your policy wording, as it will give you a clear breakdown of which circumstances will be liable for a pay-out.
In this article, we dive into 5 of the most common reasons why GAP Insurance won’t pay-out.
- Your insurer would not pay-out if your car was not a total loss
This means, if your car was not involved in a situation which would have deemed it a total loss, your insurer will not pay-out. This still applies even if you got into an accident but there was only a part of the car damaged.
- Your insurer would not pay-out if you bought your policy after a certain period of time following the purchase of your vehicle
Some insurers implement a specific window of time where the purchase of a policy will be valid. After that, even if you have a policy and you make a claim, the insurer will not pay-out. This clause will be clearly stated on the terms and conditions of the policy.
- Your insurer would not pay-out if your car was involved in a malicious claim or if there is not valid crime number
For a claim to be valid, the insurer must not have a reason to doubt that the car was legitimately involved in a crime or event that has resulted in its total loss. Furthermore, if you are unable to provide a valid crime reference number from the police, the insurer will not pay-out because of lack of evidence.
- Your insurer would not pay-out if you make more than one claim in a policy period
Insurers will refuse all claims that are made following the first claim within one policy period. This is because there is a high likelihood that the claimant is making illegal and fraudulent claims.
- Your insurer could not pay-out if your car is not mentioned in Glass’ Guide, or if the vehicle that is under the policy was explicitly excluded in the terms and conditions
The types of vehicles that insurers can cover will always be included in the terms and conditions and should be read before you buy the policy. Otherwise, you could end up buying insurance for a vehicle that is not covered and if you had to make a claim, it would automatically be rejected. Types of vehicles that are usually not covered in a standard GAP policy are commercial vehicles, emergency vehicles and modified vehicles. Although, there are insurance companies that will provide cover for these niche vehicles. Here are the cover details for our insurance at GAP Insurance Today.
There are many more reasons why your claim could be rejected.
According to Total Loss Gap, your claim could also be rejected if your vehicle is being used for certain commercial purposes. On the other hand, ALA suggests that most companies do not cover luxury cars such as Lamborghini or Rolls Royce. This is mostly due to the high prices of these luxury vehicles.
If you have any questions about specific terms and conditions outlined in your documents, it is always best to consult an expert, or other financial bodies like the Financial Ombudsman. To do this, call up your insurance broker or the insurance company directly. Being in the finance sector, full transparency must always be fulfilled by insurance agents. At GAP Insurance Today, our agents know our policies through and through. Call one of our experts today and start protecting your investment.