The secrets to getting caught in car insurance claims and a complete guide to avoiding claim rejection

In the event of an accident or loss, the success of a claim hinges on the claims process and details. Below are the claims procedures and points to note to help you reduce the risk of claim denial

Recommended vehicle insurance claim procedures for traffic accidents

The traffic accident claims process is a core part of insurance claims and directly determines whether compensation will be successfully obtained. Therefore, understanding and following the steps below can minimize the risk of claim denial:

1. Ensure safety: If necessary, place a warning triangle 50 meters behind the vehicle, and pay attention to road safety first.

2. Notify the police immediately: In the event of a traffic accident, you should immediately report it to the police and obtain the police report number.

3. Record important data

   • The license plate number of the third-party vehicle

   • The name and address of the third-party driver

   • The name of the insurance company and the policy number of the third-party vehicle

   • The injured person's personal information and injuries

   • Police report number

4. Take photos and preserve evidence: Take panoramic photos of the accident scene, the extent of the damage, and preserve dashcam footage.

5. Formal police report: If the accident was caused by the negligence of a third party, a police report should be filed within 10 days.

6. Never admit responsibility or sign an agreement: Even if the accident was caused by your own negligence, you should not admit responsibility to a third party, agree to compensation, or sign an agreement.

7. Submit claim documents:
   Complete the claim form and attach the following documents:

   • Driver's license, identification documents, and vehicle registration documents (both sides)

   • Police report number and statement, notice of proposed charge, and other official documents

   • Police breathalyzer test results

   • Dashcam footage, and photos of the accident scene and the extent of damage

   • Repair quote (applicable only to comprehensive insurance)

8. Once you receive any relevant documents, you should promptly submit them to the insurance company for processing.
   
   Note: The claims procedures for vehicle theft and windshield damage differ; please consult your insurance company for detailed requirements.

Common mistakes to avoid claim denial

1. Delayed reporting: You must notify the insurance company within 7 to 14 days after the incident to avoid exceeding the time limit stipulated in the insurance policy.

2. Failure to use designated service provider: Some insurance companies require the use of a designated trailer or garage, otherwise they may refuse to pay.

3. Handling legal proceedings independently: Upon receiving a third-party claim letter, lawsuit, or court summons, you must immediately hand it over to the insurance company for follow-up; do not handle it yourself.

4. Reporting failure to meet the highest integrity requirements: According to Hong Kong insurance regulations, reporting an incident must comply with the highest integrity principle. If an insurer intentionally conceals or provides false information, the insurer has the right to refuse compensation.

The relationship between NCD and claims

• Each claim will be subject to a 30% no-claim discount (NCD)

• Claims may affect renewal premiums    

• If no claim is made within a year, the NCD will increase by 10%. For example, for private cars, if no claim is made continuously, the maximum accumulation will be 60%

Want to understand the important knowledge behind NCD? Clickhereto read the full explanation.

Electric Vehicle (EV) Insurance Claim Considerations

• battery damage, inspection fees, calibration fees, and replacement vehiclesneed to be clarified.

• Water damage: Do not start the vehicle after heavy rain. Tow the vehicle and record the damage. Inquire whether the dismantling and inspection fees are covered.

Items not covered by comprehensive insurance

• Items inside the vehicle: Personal belongings lost in a car accident or theft are usually not covered.

• Unreported modifications: Failure to report modifications or dismantling may result in refusal of compensation.

• Intentional damage: If the damage is intentional on the part of the policyholder, the insurance company will not provide compensation.

Real Case Sharing

Ms. Chen was denied compensation because she forgot to submit the court summons to the insurance company and handled the court proceedings herself. This serves as a reminder to car owners that all legal documents and third-party claim documents must be submitted to the insurance company

Traffic accident claim checklist (can be saved to your phone for future reference)

1. Obtain the police report number

2. Record third-party information (license plate, name, address, insurance company, etc.)

3. Take photos of the scene (degree of damage, license plates, environment, etc.)

4. Save dashcam video footage

5. Avoid signing agreements or assuming responsibility

6. Complete the claim form and submit the relevant documents

7. To avoid delays in reporting the incident or responding to documents independently

8. Vehicle theft: Notify the police and parking lot, and record parking lot information

9. Windshield damaged*:

• Submit a color photo (including license plate)

• Repairman's Quotation

* Only applicable to full coverage or windshield insurance that covers windshield damage

Conclusion

Managing the claims process and details is key to securing coverage and premium benefits. We recommend that customers consult with their insurance company or agent to understand the coverage, claims procedures, and details of their existing auto insurance. AWM's auto insurance expert team provides professional assistance to find the most suitable auto insurance for you and ensure a smooth claims process. Feel free to inquire now!