7 Common Motor Insurance Claim Mistakes You Must Avoid
In the bustling streets of Mohali, where traffic congestion and unpredictable road conditions are part of daily life, car accidents are unfortunately more common than we’d like. Whether it’s a minor fender-bender on the Chandigarh-Ambala Highway or a more serious collision involving multiple vehicles, filing a motor insurance claim in Mohali can be your lifeline for covering repairs, medical bills, and other losses. As per the Motor Vehicles Act, 1988, every vehicle owner in India must carry at least third-party liability coverage, but many opt for comprehensive motor vehicle insurance to safeguard their own assets too.
However, the claims process isn’t always smooth sailing. A single misstep can lead to delays, denials, or reduced payouts, leaving you financially strained at a time when you need support the most. At Insurance Guru, we’ve helped countless drivers in Mohali navigate these waters, and we’ve seen the same pitfalls trip people up time and again. In this guide, we’ll dive into seven common motor insurance claim mistakes you must avoid—especially when dealing with claims for car accidents or third-party liabilities. Armed with this knowledge, you can file smarter, faster, and fairer claims. Let’s steer clear of these errors and get you back on the road with confidence.
Mistake 1: Delaying the Report of the Accident
One of the most frequent blunders drivers make is waiting too long to report an accident to their insurer. In the heat of the moment, you might think, but this delay can torpedo your claim.
Under standard motor vehicle insurance policies in India, you typically have 24-72 hours to notify your insurer after an incident. Missing this window risks claim rejection, as insurers view it as a breach of policy terms. For third-party claims where you’re seeking compensation from the at-fault driver’s policy the timeline is even tighter, often requiring immediate FIR (First Information Report) filing at the nearest police station.
Real-World Impact in Mohali: Imagine zipping through Phase 8’s busy markets and clipping a scooter. If you don’t report it promptly, the other party’s insurer could argue the incident was fabricated or exaggerated. We’ve seen claims denied outright because drivers prioritized over official reporting.
How to Avoid It: Snap photos of the scene, exchange details with the other party, and call your insurer right away. For accidents causing injury or damage over ₹25,000, an FIR is mandatory. Pro tip: Use apps like those from top insurers for instant digital reporting to speed things up.
Mistake 2: Not Calling the Police or Filing an FIR
Skipping the police report is a classic error, especially in minor scrapes where tempers flare and everyone wants to settle it on the spot. But agreeing to informal resolutions without official documentation? That’s a recipe for disaster.
A police FIR isn’t just a formality it’s the cornerstone of your claim. It provides an unbiased account of the accident, including time, location, and initial fault assessment. Without it, insurers have no neutral evidence, making it easier for them to lowball or deny your payout. This is particularly critical for third-party claims for car accidents, where proving the other driver’s negligence is key.
Why It Hurts: In India, running from the scene or moving your vehicle before police arrive is illegal under Section 133 of the Motor Vehicles Act. We’ve assisted Mohali clients whose claims were rejected because they agreed to pay out-of-pocket with the other party, only to face disputes later.
Avoidance Strategy: Always dial 100 or visit the station immediately, even for low-impact collisions. Get a copy of the FIR and share it with your insurer within hours. Insurance Guru tip: Keep a portable dashcam it’s admissible evidence that bolsters your case without relying solely on police.
Mistake 3: Admitting Fault at the Scene
“I’m so sorry!” or “It was my fault, I didn’t see you.” These well-meaning words, uttered in shock, can haunt you during claim processing. Admitting fault prematurely hands the insurer ammunition to shift liability, potentially voiding your coverage or reducing third-party compensation.
In car accident claims, fault determination is the insurer’s job, based on evidence like witness statements and vehicle positioning. Emotional apologies are often twisted into legal admissions, especially in third-party scenarios where the other driver’s policy is footing the bill.
Mohali Scenario: With rising two-wheeler traffic in areas like Sector 70, a split-second distraction can lead to blame games. One client of ours said “my bad” casually, and it cost them ₹50,000 in denied repairs.
Smart Move: Stick to facts: Exchange insurance details, note license plates, and say nothing about responsibility. Let professionals adjusters or Insurance Guru advisors handle the narrative. Remember, silence isn’t guilt; it’s strategy.
Mistake 4: Skipping Medical Attention or Delaying It
Adrenaline masks pain, so many drivers wave off check-ups after a bump, only to feel aches days later. This gap in treatment is a goldmine for insurers to argue your injuries aren’t accident-related, slashing medical reimbursements in your motor insurance claim.
For comprehensive policies covering personal accidents, prompt documentation links symptoms to the crash. In third-party claims, delayed care weakens your case for compensation on hospital bills or lost wages.
The Stakes: Untreated soft-tissue injuries like whiplash can worsen, leading to long-term costs not covered retroactively. In Mohali’s humid climate, post-accident inflammation hits harder—don’t ignore it.
Prevention: Head to a doctor or hospital within 24 hours, even for “minor” issues. Get a full report and bills ready for submission. Insurance Guru partners with local clinics in Mohali for cashless treatment, ensuring seamless integration with your claim.
Mistake 5: Inadequate Documentation and Evidence Gathering
“Fuzzy memory” or “lost photos” aren’t excuses insurers accept. Failing to document damages, witnesses, or the scene leaves your claim vulnerable to scrutiny and undervaluation.
Essential evidence includes: photos of vehicle damage from all angles, skid marks, and injuries; witness contacts; repair estimates; and policy details. Without this, third-party claims for car accidents drag on, as the at-fault party’s insurer demands proof of liability.
Local Insight: Mohali’s foggy winters obscure details quickly capture everything before conditions change. A client once lost a ₹1 lakh claim because blurry phone pics were dismissed as “unverifiable.”
Fix It: Create an accident kit with a notebook, camera, and emergency contacts. Submit everything digitally via your insurer’s portal. At Insurance Guru, our experts review your docs pre-submission to spot gaps.
Mistake 6: Accepting Quick, Lowball Settlements
Insurers love pouncing with “final offers” early, preying on your exhaustion. Signing off hastily means forfeiting future claims for emerging issues like chronic pain or hidden frame damage.
In motor vehicle insurance, settlements should cover all foreseeable losses: repairs, towing, rentals, and therapy. Rushing third-party claims often caps payouts below actuals, especially if fault is contested.
Mohali Warning: With repair shops in Industrial Area Phase 1 quoting variably, a rushed deal might undervalue imported parts. We’ve renegotiated settlements up 40% for clients who held firm.
Better Approach: Consult a pro before signing. Insurance Guru offers free claim audits wait 7-10 days post-accident to assess full damages, then negotiate from strength.
Mistake 7: Ignoring Policy Details and Deadlines
Policies are dense, but skimming them leads to surprises like exclusions for “natural calamities” or strict 30-day submission windows for bills. Misunderstanding coverage e.g., assuming third-party includes your repairs results in out-of-pocket hits.
For claims for car accidents, know your limits: Third-party covers only the other’s losses, while own-damage needs add-ons.
Consequence: Expired deadlines mean forfeited rights. In 2025, with IRDAI tightening norms, non-compliance is riskier.
Pro Tip: Review annually with Insurance Guru. We demystify jargon and flag renewals, ensuring you’re never caught off-guard.
Why Choose the Best Motor Insurance in Mohali? Partner with Insurance Guru
Avoiding these mistakes starts with the right policy. In Mohali, where urban sprawl meets highway perils, selecting top-tier motor vehicle insurance is crucial. Based on 2025 IRDAI data, insurers like HDFC Ergo, ICICI Lombard, and Bajaj Allianz lead with claim settlement ratios above 95%, vast cashless garage networks (over 5,000 nationwide, including 50+ in Punjab), and quick payouts.
But why settle for generic when Insurance Guru tailors it? As your local expert, we compare quotes from India’s best, securing premiums 20% lower on average. Our comprehensive plans bundle zero-depreciation, roadside assistance, and engine protection ideal for Mohali’s pothole-prone roads. For third-party claims, we streamline FIR-to-payout in under 7 days.