Dear Mabs
I am a new driver and my parents recently bought me my first car. However, I’m responsible for insurance and running costs. I’m a nervous driver and made sure to get a comprehensive insurance cover, including cover scratches and dents. A friend was involved in a car accident and his car was written off. He was insured with the same company as me and we have similar covers. His claim was turned down based on the fact that he had not taken the car for service when it reached a specific mileage. This had absolutely nothing to do with the accident, he was hit by a drunk driver. This had me very nervous and I began searching for information on consumer sites and it seems common for insurance companies to turn down claims on reasons that are not related to the cause of the accident. Please help me understand the circumstances that can lead to insurers refusing to settle claims.
Mabs answers:
Congratulations on your car and I’m impressed that you are trying to protect yourself by gaining as much knowledge as possible. I get questions like this one regularly. They are often from individuals who have been burned and it is often too late when they reach out.
Many people enter into contracts with insurers blindly and don’t take the time to scrutinise their policies to get a full understanding of what they signed up for. When you take an insurance policy you are bound by the insurer’s terms and conditions and it is important to know what those are. Here are some of the most common T’s & C’s to bear in mind.
Take great care of your car. Just because you are insured does not mean you should no longer maintain your car. Take it for regular service and ensure that it is healthy.
Use it for the purpose it is insured for. If you are insured to use the car for personal use only, the insurer can refuse to pay out if they discover that you have been using the vehicle for business.
The list is endless and I would not be able to list everything here, but your insurance contract is a great starting point.
