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Reasons your Car Insurance was Rejected | DirectAsia Insurance
Thu, 05/31/2018 - 15:09
All drivers in Singapore know that you need to have car insurance before you bring your spanking new car on the road for a ride. As such, you might be thinking, “all you car insurers must be clamouring for me to sign up for an insurance policy with you”, right?
Well yes, in a sense, because that’s business after all. But do you know that there can be instances where car insurers reject your application as well? It’s a little like applying for a credit card with a bank - you’d most likely not get through the application if you have outstanding debts. So what are some of these instances where you could be denied your car insurance and what can you do about it?
1. Having a number of traffic violations
So let’s say you have no outstanding debts with a bank, but you’ve made a couple of late payments in the last one year. Do you think it will affect your credit standing? You bet. The same goes for your car insurance; if you’ve never gotten into any accidents but has had a number of traffic violations, it can affect your insurance application as well.
2. Your car is modified
There are basically three types of vehicle modifications in Singapore:
- Modifications that do not need the Land Transport Authority’s(LTA) approval
- Modifications that need LTA’s approval
- Modifications which are not allowed
While certain car insurers may not want to insure any modified vehicles at all, DirectAsia goes ahead to insure drivers as long as their modifications are LTA-compliant. Under our standard policies, the vehicle owner is covered for the costs of original parts replacement and claims will not be voided for LTA-compliant modifications.
Additionally, if you would like to have these modified parts insured so you can make claims on them, DirectAsia has an optional My Accessories cover that will allow you to insure them against loss and damages.
3. Your Occupation
Not all insurance rejections are due to your driving records; sometimes it is linked to the driver’s profile as well. Your profession can have an impact on the insurer’s risk assessment. Some of the profession that we do not insure includes:
- Personnel of foreign armed forces
- Professionals who are involved with the entertainment industry
- Professional sportsmen or sportswomen
- Foreign diplomats and foreign diplomatic staff
- Driving instructors requiring business use
4. Failing to report on an accident
There are times where drivers prefer to go for a private settlement instead of submitting a claim in order to protect their No-claim Discount. We totally understand that, especially when you are faced with such an attractive discount, like our NCD60. However, we’ll still need you to report the matter to us, although it will not affect your No-Claim Discount. Complete and send us a copy of the Private Settlement form when you're reporting the claim.
All accidents must be reported to your insurer within 24 hours or by the next working day with your accident vehicle, no matter how small the incident was and irrespective of whether you are claiming from any insurers or third parties. Should you fail to report to your insurer about the accident, you may find yourself in a position of having your claims declined later. Failure to comply with the new policy condition will be seen as being “in breach” of the policy terms and conditions, rendering your insurer to have no liability on their part. It will result also in a loss of your No-Claim Discount. Click here to find out how to report a car accident.
When a driver has difficulty getting a car insurance, he/she might resort to “Fronting”, or using another person’s better driving profile in order to obtain a lower car insurance quote. Some may not know that doing this can have serious consequences for the “insured driver” as well as for third party victims who find insurers unwilling to pay out.
If you’ve had previous records of fronting, you are going to find it hard to get insured again. Always remember that when it comes to buying insurance, honesty is the best policy.
6. Having had previous accident(s)
This is probably one of the most common reasons for a car insurer to turn down your auto insurance application. No one wants to be involved in an accident, but if you’ve had one, there might be a chance that your current insurer would refuse to renew your insurance.
DirectAsia has come up with a specific type of insurance to cater to drivers who need a second chance - SOS Car Insurance. Our SOS plan gives you a complete range of cover including liability to third party and loss due to fire, theft and natural disasters. The SOS insurance is also a great base policy for further customisation according to your needs. Not sure how it compares with your current insurance, ask for a quote and compare now!
If you have been having difficulty getting your car insurance application approve, give us a call at 6665 5555 and we’ll help you out!