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, there are steps you can take. While we’re not here to give you legal advice, we can give you some general information around the dispute process. Let’s dive in. 

 

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

If your insurer 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

Check your policy documents for any exclusions or limits that could affect your claim. For example, your policy may not cover damage if you let someone drive your car who isn’t insured to drive it. It may also set a maximum payout for certain claims, such as windscreen replacement.

If you’re unsure why your claim was refused or reduced, ask your insurer to explain its decision in writing.

2. Write a complaint letter to your insurer

If you think your insurer’s decision is unfair, you can make a complaint, even if they say an exclusion applies. You can usually complain by letter or email. Check your insurer’s complaints process to find out how to submit 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 (FOS) if you're not happy with your insurer's response.

3. Wait for a final response

Your insurer has 8 weeks from the date of your complaint to send you a ‘final response’ letter. If they reject your complaint, they should include information about how you can take the case to the FOS and the deadline. 

Every insurer has a different complaints process, which you’ll usually find on their website or in your policy documents. And, if you bought through a broker, you can complain to them too. 

4. If you're not happy with the response, go to the FOS

You can go to FOS if you’re unhappy with your insurer’s final response, or if you haven’t had one after 8 weeks. You normally have 6 months from the final response to do this. 

FOS is an impartial 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. 

They'll give you an explanation of their decision and both you and the business can agree or disagree with the decision. Most complaints are resolved within 90 days, but it can sometimes take longer. 

If FOS decides that you've been treated unfairly, and you accept their decision, the insurer has to make the situation right. 

Why would a car insurance company dispute a claim?

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

• If you've been found fronting - this is where a named driver is doing more driving than the main driver. This can be treated as insurance fraud 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 a specific claims window, so it’s worth checking your policy documents.
• 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.
• 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 cancel 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, may affect your car insurance price. That's because insurers may see you as more likely to claim 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. Just make sure you’re upfront about your claims history.

Read our guide on tips for cheaper car insurance.

Can I claim against an uninsured driver?

If an uninsured driver hits you and the accident wasn’t your fault, you may be able to claim on your own policy, depending on your cover. Our guide explains what to do if you’ve been hit by an uninsured driver. You’d contact your insurer in the usual way and give them evidence and details about what happened.

You may also be able to get compensation through the Motor Insurers’ Bureau (MIB) if you’re hurt or your property is damaged. Conditions apply, and the process can take time. Check your policy or ask your insurer what applies to you.

What if a claim has been made against me?

If another driver, or their insurer, makes a claim against you, you can still dispute it. The process is a bit different - and separate from what’s covered in our guide on claiming against an uninsured driver.

Tell your insurer as soon as you can. It’s usually best not to respond to the other driver or their insurer directly, so you don’t say something that could affect your case. Your insurer can usually deal with the claim for you.

If you receive court papers, don’t ignore them. There are strict deadlines, so tell your insurer straight away.

If you have evidence from the time of the incident, such as dashcam footage, photos or witness statements, it can help support your case. If you have a crime reference from the police, it’s a good idea to have it to hand.

If you’re unhappy with how your insurer handled the claim, you can complain to them and then to the Financial Ombudsman Service. The FOS can’t decide who was to blame for the accident.

You may also be able to take your case to small claims court. In England and Wales, the small claims limit is usually £10,000, and it’s lower for injury claims. The limits are different in Scotland and Northern Ireland. You may want independent legal advice.

If you need support, you can get free help from Citizens Advice.

Read our guide on why your car insurance claim might be going to court for more on what to expect.

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

 

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