When an Insurance Company May Deny a Motor Vehicle Liability Claim: The 5 Most Common Reasons

Drivers in Ukraine may have their motor vehicle liability claims denied even after an accident due to common mistakes and violations of traffic rules. Find out in which cases the insurance company will not cover the damages and how to avoid having your claim denied

Get your auto insurance through Visit Ukraine—guaranteed coverage on the road in just 5 minutes!

BUY

Although motor vehicle liability insurance (MVLI) is mandatory for drivers in Ukraine, it is not always possible to receive insurance compensation after a traffic accident. The law provides for more than 20 grounds for denial, but in practice, most cases boil down to a few typical situations. This was reported by the Motor (Transport) Insurance Bureau of Ukraine (MTIBU).

Payment is not guaranteed in all cases: what you need to know

Auto liability insurance covers damage caused to third parties, but only if the driver of the insured vehicle is at fault. If this condition is not met or the procedure is violated, the insurance company has legal grounds to deny compensation. Let’s look at the most common reasons.

1. Lack of civil liability on the part of the driver

An insurance payout is made only when the damage resulted from the actions of the driver of the insured vehicle. For example, if a passenger opened the door and damaged another car, the driver is not liable. In such a case, the insurer has the right to deny payment, as the incident does not fall under the terms of the MTPL policy.

2. The deadline for filing a claim has passed

The law establishes clear deadlines for receiving compensation:

● up to 1 year after the accident — if property was damaged;

● up to 3 years — if injury or death occurred.

If the injured party did not file a claim on time, the insurance company may legally refuse to pay.

Don't want to miss important updates and useful articles? Subscribe to our weekly newsletter!

3. The claim is filed by a person without verified ownership

Compensation can only be received by the owner of the damaged property or a person who has documentary proof of ownership. This may include: a power of attorney, a lease agreement, or a certificate of inheritance. If such documents are not available, the insurance company has no grounds to make a payment.

4. Breach of obligations following a traffic accident

After an accident, drivers and victims are required to follow established rules. Violating these rules is one of the most common reasons for denial. Specifically:

● The damaged vehicle must be kept in the condition it was in after the accident;

● The vehicle must not be repaired before the insurance company’s inspection;

● the vehicle must be made available for inspection.

The insurance company has 10 business days from the date of notification of the accident to inspect the vehicle. If this process is prevented by the owner’s actions, compensation may not be paid.

5. Errors in the auto liability insurance policy

Another common reason is incorrect information in the insurance contract. This may include:

● an incorrect VIN code;

● errors in the license plate number;

● an incorrectly specified vehicle model.

In such cases, the insurance company may deem the policy invalid for a specific accident and deny payment.

That is why it is important to verify all details during the application process. For example, when purchasing auto liability insurance through Visit Ukraine, drivers can immediately verify the accuracy of the entered data and avoid common mistakes that could cost thousands of hryvnias in the future.

How to avoid a denial of insurance payment?

The MTIBU emphasizes: most issues with payouts arise due to carelessness or violations of basic rules. To minimize risks:

● carefully check the details in the insurance policy;

● adhere to the deadlines for filing a claim;

● do not repair the car before the insurer’s inspection;

● keep all documents confirming your right to compensation.

These simple steps will help you receive insurance compensation without unnecessary difficulties.

We remind you! Ukraine is gradually updating its rules for commercial transport drivers, focusing on the European approach to safety and working conditions. The changes will affect international transport, working hours, rest periods, and vehicle inspections. Read more about key changes for drivers and transport companies in 2026.

Photo: Samuel123 / Freepik

Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.

We recommend purchasing it for a safe and comfortable trip to Ukraine: 

Visit Ukraine Insurance – insurance covering military risks for entry and travel in Ukraine;

Visit Ukraine Car Insurance – car insurance with extended coverage in Ukraine;

Visit Ukraine Legal Advice – comprehensive legal support on entry to Ukraine;

Visit Ukraine Tickets – bus and train tickets to/from Ukraine;

Visit Ukraine Tours – the largest online database of tours to Ukraine for every taste;

Visit Ukraine Hotels – hotels for a comfortable stay in Ukraine;

Visit Ukraine Merch – patriotic clothing and accessories with worldwide delivery.

© 2018-2026, Visit Ukraine. Use, copying or reprinting of materials on this site is permitted only with a link (hyperlink for online publications) to Visit Ukraine.

All rights reserved.