5 Reasons Why Motorcycle Insurance Claims Are Rejected

There are several situations that can cause your motorcycle insurance claim to be rejected. Learn about the five most common reasons and how to avoid them.

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Motorcycle insurance provides financial protection in the event of any unforeseen mishaps such as an accident, theft or damage. However, having insurance alone does not necessarily mean that every claim that is made will be approved.

The insurance company will assess each claim based on the agreed policy terms and conditions. If any conditions are not met or the information provided is inaccurate, there is a tendancy for the claim to be rejected.

That’s why it’s important to understand what can cause a motorcycle insurance claim to be rejected. By knowing these mistakes in advance, you can avoid them and ensure that the coverage that you picked actually comes in handy when needed.

1. Insurance Policy Has Expired

One of the most common reasons for insurance claims to be denied is that the insurance policy is no longer active. Some motorcycle owners only realize this after an accident had happened, even though their coverage had expired days or weeks prior.

Once a policy has expired, the insurance company is generally no longer responsible for any losses that occur after that date. Not only will this result in any claims made being denied, but you will also be left without coverage while on the road.

The way to avoid this is to set a reminder for your insurance expiration date on your phone so that you are notified that your insurance is about to expire, or renew it early so that your insurance policy is always active and you are always protected.

2. Accidents are Not Reported Within the Specified Period

After an accident, some riders take too long to report it to the insurance company or authorities. Even if the accident seems minor, delaying the report can affect the claim process.

Most insurance companies have a specific timeframe for receiving accident reports. If this timeframe is not adhered to, they may have the right to reject the claim because the prescribed procedures were not followed.

To prevent this from happening, after an accident, take photos at the scene of the incident, save the information of the parties involved, and report the incident as soon as possible according to the established procedures.

3. Inaccurate Information Provided

Inaccurate information when purchasing a policy or making a claim can also cause problems. Some people forget to update their personal information, while others provide incomplete information about their motorcycle or the accident.

Insurance companies will review each claim carefully. If there are discrepancies in information or evidence that is inconsistent with the report provided, the claim process can be more complicated or even worse, denied.

Therefore, always make sure that all of the information provided is accurate and complete. If you are unsure, seek clarification from the insurance company before submitting a claim so that your claim does not have the potential to be rejected.

4. Damages Suffered are Not Covered by the Policy

Many motorcycle owners are not aware of the type of coverage they are choosing. For example, if you only have Third Party Insurance, damage to your own motorcycle due to an accident may not be covered.

This is why it is important to read and understand the coverage scope before purchasing or renewing a policy. Different policies offer different benefits, so don’t just look at the premium price alone.

Take some time to read the insurance policies offered so that you understand what is covered and what is excluded in your insurance policy.

5. Motorcycle Used Outside of Policy Terms

Every insurance policy has specific usage conditions. If the motorcycle is used for purposes that are not covered by the policy, a claim may not be accepted.

For example, using a motorcycle for illegal racing activities or other purposes that are excluded in the policy may cause the insurance company to deny a claim. While this situation does not happen to everyone, it is still important to be aware of.

Therefore, read the terms and exclusions of the policy that you picked carefully so that you understand the limits of the policy that you picked.

Conclusion

Making a motorcycle insurance claim can be a much easier process if you understand the terms and conditions from the start. By keeping your policy active, providing accurate information, reporting accidents according to procedure, and understanding the types of coverage you have, you can reduce the risk of your claim being denied.

If your motorcycle insurance is about to expire or you are still confused about the type of coverage that is right for you, iMotorbike is here to help with our iMotorbike Insurance Renewal service. Our team can help you determine the right policy, and make the renewal process easier so you can continue riding with more confidence. Visit the iMotorbike Insurance Renewal website and renew your insurance with iMotorbike today.