What To Do If Your Car Insurance Claim Is Denied

It isn’t uncommon for vehicle insurance companies to reject accident claims. You might face an insurance claim denial if the company believes the accident was avoidable, if no one sustained an injury during the accident, or if health records don’t indicate pain or injury.

Denials can be stressful and frustrating, particularly if you’re dealing with huge bills and missed work days. In the event that you face a denial, identify the reason provided and ensure it’s appropriate. After all, insurance companies could make errors. Here’s what to do if you face an insurance claim denial.

What Happens if You Face an Insurance Claim Denial?

You’ve sustained an injury in an auto accident that wasn’t your mistake. You’ve even done the necessary things-filed a report with the police, informed your insurer, made an insurance claim to the other party’s insurance for your car and medical bills and presented documentation of your damages and injuries.

In spite of this, the insurer claims that the other driver wasn’t at fault and they decline to cover your expenses. When you face a denial, it’s only natural that you’d be frustrated. You might not know where to turn when you receive the denial letter in the mailbox.

However, other avenues exist where you can pursue the claim. A consultation with an informed vehicle accident lawyer might be enlightening.

A lawyer who’s experienced in handling insurance claim denials can assess the circumstances surrounding your insurance claim and present some choices for proceeding. That might involve appealing to the insurer directly or filing a lawsuit.

Appealing the Denial

Most insurance firms have a procedure for appealing denied insurance claims. A vehicle accident lawyer could assist you with gathering all the necessary documents and evidence to address the grounds for denial and issue them to the insurer on your behalf.

Your attorney can state why you should receive payment under the policy and negotiate for a settlement. That procedure might involve going to arbitration where every side presents arguments to a neutral third party and the person makes a ruling.

File a Lawsuit

If the insurance firm acted in bad faith, you might be able to file a lawsuit for improper practice. If you opt to go this route, you’ll require a proficient injury lawyer.

Reasons for Insurance Claim Denial

Although filing an auto insurance claim is a simple process, at times the company rejects the claim. While such situations don’t occur frequently, when they do, it’s imperative you identify what went wrong and why. When you face a denial, the insurer must provide the grounds for denial. Some of the reasons include:

• Accidents that were the result of negligence on the policyholder’s part

While accidents can arise anywhere, anytime, the insurance company can deny your claim if there’s a chance that the accident was avoidable. If the accident occurs due to your negligence, you can face a claim denial.

Denial can arise when the insurance firm believes you could have done something keenly that’s beyond the policy terms. Such activities comprise null driving license or drunk driving. In the event that an accident occurs when you’re under alcohol influence or another intoxicant, it isn’t just illegal, but the insurance company has the right to reject your claim. Also, if you have a fake or expired license, the insurer can deny your insurance claim.

• Policy Excursions

Insurance policies typically comprise a list of items that aren’t covered. The insurance company might use the listed items to declare that the policy doesn’t cover the accident.

Final Thoughts

An auto insurance denial can be frustrating, expensive, and disappointing. If you face an insurance claim denial, ensure you identify the reasons for the denial. It’s equally important you know to handle such a situation.

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