Filing a car insurance claim is quick and straightforward, but even small mistakes can lead to delays or rejections. Many policyholders slip up by skipping policy detail checks, submitting incomplete documents, or starting repairs before inspection. 

Yet, insurers settled about 81.13% of claims within three months in 2023–24. Whether you own a private or commercial vehicle, knowing the right process matters. Read on to discover common car insurance claim mistakes and smart tips to avoid them.

7 Top Common Car Insurance Mistakes to Avoid During the Claim Process?

Here are the top common mistakes vehicle owners usually make when filing claims for car insurance online:

• Not Informing Insurer

This is the first and foremost mistake that the majority of car owners make after meeting with an accident or damage. It is mandated by insurance companies to report accidents within a fixed and specific timeframe. Failing to follow this timeline results in an invalid claim filing. 

Tip: Contact your insurance provider immediately after an accident, even if there is minor damage. 

• Not Reviewing Car Insurance Policy Details

Nowadays, the majority of policyholders skip going through the policy documents thoroughly. As a result, file claims not covered in the policy, such as normal wear and tear, breakdown, and other accidents caused by drinking and driving. 

Tip: Go through the car insurance policy document to know the inclusions and exclusions before filing a claim. 

• Providing Misleading Information

Another common error is entering incomplete and inaccurate information in the claim form. Even if there are small mistakes, it might lead to a delay in the claim process and further unnecessary complications. 

Tip: Stay honest and reliable always while filing claims or interacting with the insurance company. 

• Not Filing an FIR On Time

In case of theft, third-party losses, and reporting injuries, filing an FIR is a must. Many insured individuals find this step irrelevant and skip it. However, skipping this can lead to claim rejections. 

Tip: File an FIR immediately with the police if there is any injury, theft, or damage caused to the property of another person. 

• Initiate the Repairing Process 

Most of the car owners often start the repairing process before the vehicle inspection starts from the insurance surveyor’s side. This is a major mistake as there is a need for a valid proof of the car’s condition for claim validation. 

Tip: Begin with the repairing process only after the surveyor finishes reviewing and permission is granted from the insurer. 

• Absence of Records and Proofs

Many car owners forget to capture damaged parts of the car as proof. Thus, not keeping these damaged proofs, bills, receipts, and towing records can result in claim delay. Insurers look for records for easy claim approval without problems. 

Tip: Capture photos of the accident and damage caused to your car, keep a copy of the bills and receipts with other necessary documents. 

• Missing Renewal Dates

Some people claim insurance with a lapsed commercial motor insurance policy. But if your coverage tenure has come to an end, you cannot file complaints, even if your case is valid.

Tip: Set up constant reminders for renewing your car insurance policy and stay uninterrupted. 

A Step-by-Step Method of Car Insurance Claim

Claiming requests for motor insurance allows insurers to cover costs based on the terms and conditions of the policy. Let’s explore how to file both cashless and reimbursement claims:

• Cashless Car Insurance Claim

Step 1: Go to your insurance provider’s website or app to register your cashless claim.

Step 2: Enter the claim registration number sent to your registered mobile number. 

Step 3: For a cashless garage, move your vehicle to any of the network garages. In this instance, transactions take place directly between the garage and the insurance provider. 

Step 4: Upon submission of relevant documents, your insurance company confirms liability. 

• Reimbursement Car Insurance Claim

Step 1: Visit your car insurance provider’s app or official website to register your reimbursement claim. 

Step 2: Provide the claim registration number sent to your contact number. 

Step 3: Shift your damaged car to any nearby garage. However, for this case, it is not mandatory to service your car from any network-authorised garage. 

Step 4: Submit all necessary documents to your surveyor.

Step 5: Upon successful verification of documents, the insurance company confirms liability and starts the reimbursement claim process. 

Bottom Line

Following the key tips results in a smooth and hassle-free claim settlement process. Through on-time reporting to the insurer, providing accurate policy details, and following the policy claim guidelines, you can avoid delays and rejections in the claim procedure. 

Moreover, by communicating clearly and following an accurate documentation process, you can experience the motor insurance benefits with full coverage when you require it the most.