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What To Do If A Car Insurance Company Denies Your Claim?

insurance company denies your claim

Even though being in a car accident is stressful, it gets worse if your auto insurance company denies your claim. In several scenarios, an insurance company will find a reasonable justification for declining to pay out on a car claim. If you face claim denials, it is crucial to know that-

  • Why was a claim denied?
  • What to do when a claim is denied?

Understand your letter of claim denial

The insurance provider will send a 'claim denial letter' if a car insurance claim is rejected. The insurance adjuster explains the decision-making process in this letter. To understand the insurer's justifications, it is crucial to read the complete letter of claim denial.

This Green Bay car accident attorney tells us the ways to challenge the insurance company's decision if you disagree with the claim denial.

Find out why your auto insurance provider rejected your claim.

Depending on the specifics of the situation, there could be a number of reasons why your auto insurance claim is denied. Police reports, eyewitness accounts, simulating an accident, and other factors can affect how a car insurance claim is decided. If you get a letter of refusal, read it carefully as it usually contains justification for the choice.

The following are a few typical explanations for why a claim is rejected-

Expired insurance policy

Without valid insurance, when an accident occurs, the insurance company is not liable to pay for damages. The easiest way to ensure that your coverage is in place when you claim is to pay for your car insurance renewal on time. A lapse in coverage could result in penalties depending on the state you live in, in addition to the risk that your claim would be rejected.

Policies' exclusions

Pay close attention to the coverages you select when buying car insurance and their financial protection. For instance, if your car is older, you might feel that comprehensive collision coverage is unnecessary. But without the right coverages in place, the insurance provider won't be able to help if your car is stolen or you get into an accident.

Insufficient coverage

To keep the cost of auto insurance down, you might be tempted to choose the state's minimum liability limits. While you might succeed in lowering your annual premium, you risk exceeding your liability limitations if you have an accident that results in several injuries to other people or hits a high-value vehicle or structure. For example, let's say you have $25,000 in property damage liability coverage, but you hit a  $40,000 vehicle. The motor insurance company will only pay up to the $25,000 allotted; however, they will refuse to pay the remaining $15,000, which may expose you to legal action for the unpaid balance.

Other reasons your car insurance company can deny a claim include:

You were involved in a collision with an uninsured driver:  It may be difficult or impossible to locate accurate insurance information if someone causes a collision with you and gives fake insurance information or commits a hit-and-run.

The insurer of a negligent driver rejected your claim: Providing inaccurate insurance information or not having enough or the appropriate coverage are a few examples. Additionally, you are responsible for covering your medical costs if an accident occurs in a no-fault state.

Your claim was refused unfairly: Your claim might have been wrongfully rejected in this instance. You can contest the denial of your car insurance claim. To consider while appealing a car insurance claim decision, follow these steps:

  • Gather evidence: Gather the proof you'll need for your appeal which may include police reports, witness statements, images, medical records, and other supporting documentation.
  • Create a letter of appeal: You will explain in your letter why you disagree with the insurance company's judgment.
  • Consider hiring legal counsel: It is wise to employ a lawyer if you want expert advice. They can look through your supporting documentation and the case.

Most insurance company claims denials are legitimate, while some aren’t. In this situation, appealing the insurance company's judgment can result in the decision being overturned.  With this information, you will be in a better place if your insurance company denies your claim.

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