By: 12 September 2023
£47 million in motor insurance claims denied in 2021

New research from Go.Compare Car Insurance has exposed that over £47 million worth of motor insurance claims were turned down during the second half of 2021, according to Financial Conduct Authority (FCA) data. 

Between July and December 2021, more than 14,000 motor insurance claims faced rejection. These rejections made up just 0.8% of the 1.7 million insurance claims filed during this period. However, their combined value highlights the need to understand potential claims process obstacles. 

The statistics provide valuable insights into the trends and statistics related to motor insurance claim rejections. This could help insurance professionals better understand the challenges and issues faced by policyholders. 

Common reasons for car insurance claim rejections include outdated information, such as an expired MOT or failure to update one’s address. Other top reasons for claim denial include: delays in reporting accidents within the 24-hour general rule, holding a policy under a different driver’s name, and negligent behaviour like reckless driving or skipping maintenance checks. 

Using a vehicle for purposes not specified in the policy and modifying it without notifying the insurer are actions that can jeopardize claims. Additional pitfalls include attempting to claim for uncovered items and missing premium payments, which can void the insurance. 

The statistics provide a valuable perspective on the challenges faced by policyholders and how these challenges can be addressed to improve customer satisfaction, reduce risks, and enhance the overall effectiveness of insurance operations.  

Go.Compare have used the data to educate their customers about the common pitfalls and mistakes that can lead to claim rejections. 

Ryan Fulthorpe, a car insurance expert at Go.Compare, stressed the importance of thorough policy understanding and compliance, saying, “£47 million is a significant amount to be denied, especially for avoidable mistakes.” He urged policyholders to carefully read policy terms and conditions, maintain timely payments, and ensure their bank details are up-to-date to prevent accidental missed payments.  

Image: © Industrial Photograph via Canva
Josie Geistfeld
Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk