Brumble Guides.
Having your car insurance claim rejected can be stressful and confusing. But don't panic – a rejection doesn't always mean the end of the road. Here's what you need to know about why claims get rejected and what you can do about it.
Having your car insurance claim rejected can be stressful and financially devastating. You've been paying your premiums, expecting protection when something goes wrong, only to be told your insurer won't pay out. But a rejection doesn't have to be the end of the road. Understanding why claims get rejected and knowing your rights can help you challenge unfair decisions and avoid problems in the future.
The scale of the problem is significant. Industry analysis for 2025 indicates that more than 20% of UK motor insurance claims are ultimately not paid out. This includes outright rejections, claims withdrawn following insurer disputes, and claims abandoned by policyholders who feel stonewalled by the process.
With UK insurers handling over 2.4 million motor claims annually and paying out a record £11.7 billion in 2024, even a 20% rejection rate means more than 1.2 million drivers are left covering their own costs each year. With the average motor claim now reaching £4,900, and some claims hitting £5,300, being rejected can represent a serious financial blow.
More than one in five UK car insurance claims are rejected or abandoned each year, leaving over 1.2 million drivers facing unexpected costs.
Understanding why insurers reject claims is the first step to avoiding problems. While every case is different, the vast majority of rejections fall into a few common categories.
This is the single biggest reason for claim refusal. Non-disclosure means failing to tell your insurer something that would have influenced their decision to offer you cover or the premium they charged. Common examples include:
Research shows that 16% of rejected claims are due to undeclared modifications alone. Even seemingly minor changes like window tints, alloy wheels, or rear spoilers must be disclosed.
Insurers check your information against the CUE (Claims and Underwriting Exchange) database, which holds records of all incidents reported to insurers over the past six years. If the information you provided doesn't match what's on CUE, your claim could be rejected.
Fronting is a specific type of non-disclosure that is illegal. It occurs when a more experienced driver, usually a parent, insures a car in their name and lists a younger, higher-risk driver as an occasional user, when in reality the younger person is the main driver. If discovered during a claim, the insurer will reject the claim and void the policy from the start, potentially leaving both parties facing prosecution.
Your policy specifies how you can use your car. If you're insured for social, domestic and pleasure use only but have an accident while commuting to work, your claim could be rejected. The same applies if you use your car for business purposes without the appropriate cover. Always check that your policy matches how you actually use your vehicle day-to-day.
Every motor insurance policy contains a clause stating that you must keep your vehicle in a roadworthy condition. Driving with illegal tyres (less than 1.6mm tread depth), faulty brakes, broken lights, or an expired MOT can lead to rejection if these issues contributed to the accident. Insurers may argue that you failed to take reasonable care of your vehicle.
Most policies require you to report accidents within 24-48 hours, even if you don't plan to claim. Waiting too long can give your insurer grounds to reject your claim. They may argue that the delay prevented them from properly investigating the incident or that evidence has been lost.
Driving under the influence of alcohol or drugs will almost certainly result in your claim being rejected, along with severe legal penalties. Using your phone while driving and causing an accident can also lead to rejection. Additionally, failing to take reasonable care to prevent theft, such as leaving keys in the ignition or windows open, may void your claim for negligence.
If your insurer rejects your claim, don't give up. You have rights and options available to challenge the decision.
Contact your insurer and ask them to explain in writing exactly why your claim was rejected. They should cite the specific policy terms or conditions you allegedly breached. Make sure you fully understand their reasoning before deciding how to respond.
Look carefully at your policy wording to see if the rejection is fair. Sometimes insurers make mistakes or interpret policy terms differently than you might. Check whether the exclusion they're relying on actually applies to your situation.
If you disagree with the decision, submit a formal complaint to your insurer in writing. Explain why you believe the rejection is unfair and provide any supporting evidence. Under FCA rules, insurers must acknowledge your complaint within five business days and provide a final response within eight weeks.
If you're still unhappy after complaining to your insurer, or if they haven't responded within eight weeks, you can escalate your case to the Financial Ombudsman Service (FOS). This service is completely free and independent.
The numbers show it's worth pursuing. In 2024/25, the Financial Ombudsman received over 305,000 new complaints across all financial products, with motor insurance complaints rising 55% over the past five years to more than 15,200 annually. Crucially, the Ombudsman upheld 34% of all complaints in favour of consumers, and for motor insurance specifically, the upheld rate was 41% in recent quarters.
This means more than one in three people who complained about their motor insurer got a result in their favour. If the Ombudsman finds your rejection was unfair, they can order the insurer to pay your claim plus compensation for any distress caused.
More than one in three motor insurance complaints are upheld in the consumer's favour by the Financial Ombudsman Service. You can contact them at www.financial-ombudsman.org.uk or by calling 0800 023 4567.
Insurers are increasingly sophisticated at detecting fraud and non-disclosure. In 2024, UK insurers identified £1.16 billion worth of fraudulent claims, a 2% increase on the previous year. They uncovered over 98,400 fraud-related claims, with motor insurance accounting for 53% of all detected fraud.
When you take out a policy or make a claim, insurers check your information against several databases:
The CUE database holds records of all motor, home and personal injury incidents reported to insurers over the past six years, regardless of whether a claim was made.
The Motor Insurance Anti-Fraud and Theft Register (MIAFTR) tracks vehicles that have been written off or reported stolen.
If the information you provided when taking out your policy doesn't match what's on these databases, insurers have grounds to reject your claim. They may also void your policy entirely, leaving you with no cover at all. This makes it essential to be completely honest when applying for insurance, even about incidents you didn't claim for.
The best approach is to prevent rejection in the first place. Here's how to protect yourself:
Be completely honest when applying: Declare all previous claims (even if you weren't at fault), convictions, modifications, and any other information that could affect your premium. Remember that insurers can check your history on the CUE database.
Update your insurer about changes: If anything changes during your policy period, such as moving house, changing jobs, adding modifications, or adding drivers, tell your insurer immediately. Failing to do so could invalidate your cover.
Match your cover to your actual use: Make sure your policy covers how you really use your car. If you commute to work or use your vehicle for business, you need the appropriate class of use.
Keep your car roadworthy: Maintain legal tyre tread (minimum 1.6mm), working lights and brakes, and a valid MOT. Keep service records as evidence of maintenance.
Report incidents immediately: Tell your insurer about any accident or incident within 24-48 hours, even if you don't plan to claim. This protects you if the other party decides to make a claim later.
Install a dash cam: Video evidence captured with a dash cam can be invaluable in proving what happened and supporting your claim. It makes it harder for insurers to dispute the facts.
Never admit fault at the scene: Even if you think you're to blame, stick to the facts and let the insurers determine liability. Admitting fault can compromise your claim.
Different insurers have different approaches to claims handling. Some are known for more straightforward claims processes, while others may be stricter about policy terms. Taking time to compare policies and read reviews about claims experiences can help you find an insurer that's more likely to pay out when you need them.
Find insurers that match your needs, whether you've made modifications, need business cover, or simply want peace of mind that your claims will be handled fairly.
With more than one in five UK car insurance claims being rejected, understanding the process and knowing your rights is essential. The most common causes of rejection, including non-disclosure, incorrect vehicle use, and poor vehicle maintenance, are all preventable with proper care and honest communication with your insurer.
If your claim is rejected, remember that you have options. The Financial Ombudsman Service provides a free, independent way to challenge unfair decisions, and the statistics show that pursuing a complaint is often worthwhile. More than a third of motor insurance complaints are upheld in the consumer's favour.
The key to avoiding problems is transparency. Declare everything honestly, keep your insurer updated about changes, maintain your vehicle properly, and report incidents promptly. Following these steps won't guarantee your claim is approved, but it significantly reduces the risk of being caught out by the small print when you need your insurance most.
As a courier, it's important you have the right level of cover, read our comprehensive guide to ensure you don't get caught short.
Student car insurance is notoriously expensive, with the average UK student paying around £2,722 per year. This guide explains why premiums are so high for those in full-time education and what you can do to bring costs down legally.
Read our comprehensive guide on Van Insurance for the self-employed that covers the essentials for tradespeople, contractors and sole traders who use their van for work.
