Can a Car Insurance Company Refuse to Pay a Claim?
The average American driver spends about $1,655 yearly on full-coverage car insurance. This significant investment is supposed to provide peace of mind, knowing you're protected in case of an accident.
But what if your insurance claim gets denied? Do you know what steps to take? This article will guide you through handling a denied accident claim. We'll explain how car insurance claims work and when to hire a car accident lawyer. Keep reading to understand how to protect your rights and ensure you get the coverage you're entitled to.
Filing a Car Insurance Claim
Being familiar with filing a car insurance claim properly is crucial for understanding why your claim might have been denied. Please complete forms or include essential details to avoid a denial.
Before assuming you know why your car insurance claim was rejected, review the forms you submitted and the information you provided. Make sure everything is accurate and complete. This careful review can help you spot any errors or missing details that caused the denial and guide you in correcting them.
Speak with a Car Accident Lawyer
After a car accident, you must report the damage to your insurance company immediately. However, you should hire a car accident lawyer to handle communications.
If you hire a lawyer, be cautious about what you tell your insurance company. Avoid admitting fault or placing blame until you've had a chance to speak with your attorney. Determining fault can be complicated, and it's best to leave it to the legal experts.
Gather the Details
Whether you hire a car accident attorney or not, collecting all the details before filing a car insurance claim is essential. Here are the critical pieces of information you should gather:
- Names and contact information of everyone involved
- Insurance policy details
- Police report
- Photos or videos of the incident
You only need the first two items to file a claim, but having the police report and recordings can provide extra support for your case.
Wait for the Review
After submitting your car insurance claim, the final step is to wait for a decision. While you’re waiting, keep detailed records of all communications. Note who you spoke with, when you spoke to them, and what was discussed.
This information will be valuable if you must involve a car accident attorney due to a denied claim.
Why Was Your Insurance Claim Denied?
If your car accident claim was denied, the insurance company reviewed your claim but decided not to pay for any damages from the accident.
If filing the claim wasn't the issue, why was it denied?
Here are some common reasons, but remember, you can still challenge the decision.
Lapsed Policy
If the at-fault driver's insurance policy has expired, they won't have coverage for damages. The insurance company usually determines this situation, but a car accident lawyer can help you look into other compensation options.
Late Accident Claim
Some policies require you to file a claim within a specific time frame. If you delay reporting the accident, the insurance company might say they don't have enough information to investigate, which could lead to a denial. It's essential to report the accident and file your claim right away, even if you plan to consult an attorney.
Lack of Evidence
A lack of evidence can also result in a claim denial. The insurance company uses your information to investigate the accident and determine fault and damages. If they can't confirm the details, they might reject your claim. Having photos or videos of the accident can be very helpful.
Disputes Over Injuries or Fault
Insurance companies only pay for damages caused by their policyholders. They may only accept your claim if there's clarity about who was at fault.
Bad Faith
'Bad faith' refers to dishonest actions by the insurance company, such as intentionally denying a legitimate claim. It violates their legal responsibilities to their policyholders. If you suspect bad faith, you may need to seek legal assistance.
What to Do After Your Accident Claim Is Denied
If your insurance claim is turned down, you can follow up and try steps to challenge the decision. While you might not change the outcome, you can ensure a fair decision.
Ask for Clarification:
Request a letter from your insurance company explaining why your claim was denied. This letter is essential evidence for your case. It can also help identify any mistakes you made in filing your claim, which you can correct.
Review Your Policy
Ensure you fully understand your car insurance policy before accepting the denial, mainly due to a coverage issue. Contact your insurance company to clarify the differences between your policy and the denial letter. They should help clear up any errors.
Hire a Car Accident Attorney
If you can’t resolve the claim independently, consider hiring a car accident lawyer. It’s best to consult with a lawyer soon after your accident. They can help you provide the correct information and handle communications for you.
Hire a Car Accident Lawyer for Denied Claims
Be sure to talk to a car accident lawyer if your insurance claim is denied. The right car accident attorney knows how to work with an insurance company to get you the necessary coverage while saving you time and effort.
The Law Offices of Clinton O. Middleton can help. Call 703-777-9630 today to request a free consultation.
