How to dispute a rejected car insurance claim

If you've had a car insurance claim rejected or if you're not happy with your settlement, you can dispute it. And if your insurer rejects your dispute, you can escalate it to the Financial Ombudsman Service (FOS) or even take legal action. In this guide, we'll look at how to dispute a rejected claim and what you can do to avoid this in future.

How do I dispute the decision on my car insurance claim?

If your car insurance provider has rejected your car insurance claim, or if you're not happy with an insurance settlement, you should follow these steps:

1. Check your policy documents

Look out for any exclusions in your policy documents. An example of this could be letting someone drive your car who doesn't have the right insurance. There could be cover limits too, for example, your insurance might only pay out a certain amount for something like windscreen replacement. Read your policy and check whether your specific complaint is covered, or if you're in doubt, speak to your insurer.

2. Write a formal complaint letter to your insurer

Once you've ruled out any exclusions, you can write a letter to your insurer. You can send an email too if your insurer allows it. Here's a rough idea of what to include:

• The date
• Your name
• Your policy number
• Write 'complaint' clearly, at the top of the letter
• Explain your complaint and say why the rejection is unfair
• Include the evidence that supports your complaint - for example, police reports, photos or repair estimates
• Say what you want your insurer to do about your complaint
• Say that you'll take the matter to the Financial Ombudsman Service if you're not happy with your insurer's response.

3. If you're not happy with your insurer's response, formally complain

Your insurer has replied, but if you're not happy, you need to escalate through the insurer's formal complaints process. Every insurer has a different complaints process, you'll usually find this on their website or in your policy documents.

4. If you're still not happy with the response, go to the Financial Ombudsman Service (FOS)

FOS is an unbiased organisation that investigates companies covered by the Financial Conduct Authority (FCA). This includes insurers and it's free to use.

FOS looks at both your evidence and your insurer's. It'll then decide whether you've been treated fairly or not. According to FOS, most decisions are resolved at this stage.

They'll give you an explanation of their decision and both you and the business can agree or disagree with the decision. The process usually takes around 6 months.

If FOS decides that you've been treated unfairly, the insurer has to make the situation right. It's a legally binding agreement.

Why would a car insurance company dispute a claim?

Here's a few reasons why a car insurance company might dispute a claim:

• You've been found fronting: This is where a named driver is doing more driving than the main driver. This is a criminal offence, and could have consequences beyond a rejected claim.
• You're late submitting the claim: If you don't make your car insurance claim as soon as possible, your claim could be rejected. Some insurers give just a 24 hour window, but this varies depending on your insurer.
• You don't have cover: Your policy might not be as extensive as you thought, which means some things might not be covered. When you buy your car insurance, make sure you know exactly what's covered.
• Modifying your car: You can modify your car, but if you don't tell your insurer, they might refuse your claim. Learn more about modified car insurance.
• Using your car outside of your policy terms: For example if you don't have commuting on your car insurance policy, and you have a crash when you're commuting to work. Or if you use your car for business when it's not insured for this. Your insurer might reject your claim in this case.
• Not keeping up with your car insurance payments: If you don't pay for your car insurance your insurer could void your cover.
• Negligence: Things like leaving your car unlocked or driving irresponsibly can lead to refused or rejected claims.
• Out of date information: For example, if you don't have an up to date MOT. This could delay your claim, or in some cases your insurers might reject it.

Will my car insurance go up if my claim is rejected?

Generally, any claim you make, whether it's rejected or not can affect your car insurance price. That's because it increases your risk and the likelihood of you claiming again.

Non-fault claims generally have less of an impact on premiums. But if you're found at fault, you could see your car insurance prices rise.

But lots of different factors affect the price of car insurance, for example, where you live and what kind of car you drive. That's why it's a good idea to shop around when you buy car insurance.

Can I claim against an uninsured driver?

Yes, you can claim against an uninsured driver, usually you can only do this if you have comprehensive car insurance. You would contact your insurer in the usual way and make a claim, giving them evidence and information about the incident.

The Motor Insurance Bureau (MIB) provides compensation for drivers who've been hit by uninsured drivers. The MIB generally deals with uninsured driver cases themselves rather than insurers and involves a longer investigation.

How to prevent claims from being rejected in the future

Here's how you can prevent claims from being rejected in future:

• Read your policy thoroughly before you buy it so you know what's covered
• Make sure your information is up to date
• Keep your car in good working order
• Drive responsibly
• Tell your insurer if you're planning on modifying your car
• Don't use your car for commuting or business if your insurance doesn't cover you
• Review your car insurance regularly to make sure it's still providing the right cover for your needs
• Keep a diary of any claims or accidents so you have a record to support any future claims