One minute you’re driving to work, fetching the kids or running errands. The next, your car’s at the workshop needing a major repair, with a quote you weren’t expecting.
For those with a motor warranty, that’s usually the moment they breathe a sigh of relief and expect their cover to kick in. But when a claim’s rejected, the shock and the frustration are real, especially when motorists don’t understand why the cover didn’t apply.
“We take out cover because we want peace of mind. We want to know that when something goes wrong, we won’t be left to carry the cost on our own,” says Keagan Sloman, Head of Product and Commercial at financial services provider The Unlimited. “So, when a claim’s rejected, it’s more than just disappointing.”
Sloman says that when a claim is rejected, it’s rarely because a customer’s done something wrong on purpose. “It often comes down to not fully understanding what’s covered, what’s excluded, or what steps they need to take to keep their cover valid.”
That’s why it helps to know where claims can run into trouble. He gives seven common reasons why car warranty claims could be rejected, and what motorists can do to give their claims the best chance of being paid out:
1. Skipping services or missing service records: If you skip a service or lose proof of service or repairs, your claim may be rejected. Stick to the manufacturer’s service schedule and keep all relevant documentation in a safe place.
2. Assuming everything is covered: One of the biggest mistakes is not knowing what your car warranty covers. Most cover applies to specific parts, under specific conditions, and there is a claim limit. Before buying cover, ensure you understand exactly what is and isn’t included, and the rand value of your cover for major components such as the engine, gearbox, turbocharger, and electrical systems.
3. Confusing the fault with normal wear and tear: Some parts are expected to wear out over time. Brake pads, tyres, wiper blades and clutches are common examples of everyday upkeep, whereas a warranty is generally designed to cover mechanical or electrical failures. Confirm how wear-and-tear items are handled and budget separately for everyday maintenance if necessary.
4. Ignoring warning signs or delaying action: Warning lights, strange noises, overheating or loss of power are your car’s way of asking for attention. By continuing to drive, or by delaying reporting, a smaller fault can quickly turn into a more serious and expensive repair. Stop driving if necessary, and report any faults to your warranty provider as soon as possible.
5. Approving the repair before the claim is authorised: When your car’s stuck at a workshop and you need it urgently, it can be tempting to approve repairs quickly. But if you give the go-ahead before your warranty provider has assessed or authorised the claim, it may be rejected. Follow the claims process carefully and wait for confirmation before repairs begin.
6. Undisclosed vehicle modifications: Modifications can affect how a car performs. If a change to your vehicle contributes to the failure, your claim may be affected. Inform your provider of any plans to make modifications and check whether they affect your cover.
7. Using the car differently than declared: A car used for personal travel is not exposed to the same demands as one used for deliveries, ride-hailing or regular business travel. If the vehicle is being used differently from what was originally declared, it can affect the claim. Be transparent about the car’s purpose and update your provider if that changes.
“A warranty works best when customers understand exactly what they’re taking out from the start,” says Sloman. “Ask what’s covered. Ask what’s excluded. Ask what your responsibilities are, and what could affect a claim later on. At The Unlimited, we believe in clarity and transparency so that customers are able to make confident decisions when it comes to claiming.”