Insurance companies are responsible for covering the costs associated with an auto accident, including repairs to the insured’s vehicle, medical care, and transportation costs. However, in certain cases, drivers have their claims denied by their insurers, leaving them responsible for paying all of the costs associated with an accident out of pocket.
A car accident is a traumatic experience, but having an insurance claim denied may be extremely upsetting and challenging. If you want to get the most money out of your vehicle accident insurance claim, you need to know how to negotiate with your insurance company after an accident and why they could refuse your claim. This article will explain why your auto insurance claim was refused and what you can do about it. Car insurance claims are often denied for the following reasons:
Full or Partial Liability
In most cases, an insurance company will not pay for damage caused by a motorist who is found to be at fault in an accident. Drunk driving and other serious offenses will certainly nullify insurance. Not having a valid driver’s license, breaching traffic regulations, texting while driving, and other similar offenses can also lead to a claim being denied by an insurer.
The motorist would be wise to get in touch with a lawyer that specializes in vehicle accident cases. There may be complications with insurance claims if a motorist is found to be partially at blame for an accident and this is reflected in the official police report. Speaking with a lawyer who specializes in vehicle insurance claims is also a good idea.
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The Insurance Plan Is No Longer Active or Has Expired
If a policyholder fails to pay their premiums on time, their insurance will expire and they will no longer be insured while driving. This can occur for several reasons, including but not limited to drivers who fail to change their address, don’t pay their bills on time, or have outdated payment information. A driver who has let his or her vehicle insurance coverage to lapse is generally responsible for covering any resulting damage costs personally.
It can be challenging to establish fault in cases involving vehicle accidents when the injured party has not received a diagnosis for their injuries or when the injuries manifest themselves sometime after the collision. Insurance companies for both cars and people may dispute a claim for compensation or medical treatment if they believe the driver’s injuries were caused by something other than the collision.
If the motorist was not hurt at the site of the accident, the insurance company may use that as grounds to reject the claim. To prevent this from happening, drivers should never report being unharmed after an accident. You should be checked out by a doctor after an accident, even if you feel fine and see no signs of injury, just to be safe and so that you have proof that you did so.
Dispute Regarding Liability
Accident responsibility disputes can emerge when insurance companies and drivers cannot agree on who is at fault. This might be problematic for drivers who just have liability insurance, since they may be forced to pay for the damages themselves. If this is the case, the motorist may want to consider getting legal representation throughout the insurance claims process.
Insurance claims that involve a disagreement over culpability can be strengthened by obtaining a copy of the police report filed at the site of the accident. This will allow the claimant to see who is considered liable and proceed with the claim accordingly.
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Insufficient Notice to Insurance Provider
A driver has an obligation to promptly report accidents to their insurance provider. If they don’t, it might hurt their prospects of getting compensation. Get in touch with the insurance company without delay so they can start their inquiry and pay you what you’re owed.
People should not wait until they have fully recovered physically and emotionally before filing a claim. Most insurance companies have a 30-day deadline for filing an accident claim, however, some may be more lenient. Don’t forget to review your coverage and know when you may make a claim.
The Insurance Policy Does Not Provide Coverage For Damages
Insurance companies are not required to make payments if a policyholder’s losses are excluded. After an automobile accident, many costs may arise that aren’t covered by insurance. While insurance may help with medical expenses, it often does not cover additional damages such as lost wages or earning capacity, “out-of-network” medical treatment, therapy fees, and so on.
Submitting a False Claim
Insurance claims that have been filed fraudulently will always be dismissed. Insurance claims that contain fraudulent information, such as exaggerated descriptions of losses or injuries, false medical diagnoses, or attempts to collect benefits for pre-existing ailments or injuries, will nearly always be denied.
The insurance provider may also terminate coverage or assess penalties for any discrepancies between the submitted claim and the actual expenses if the applicant is suspected of filing a false claim. To avoid filing a false claim and being responsible for the costs associated with your automobile accident out of pocket, you should speak with an attorney who is familiar with the ins and outs of auto insurance.
What to Do If Your Insurance Claim Is Denied
You may be concerned about what steps to take if your insurance claim is rejected or if your insurer just refuses to pay. If your claim is refused, you will get a letter explaining the reasoning behind the decision and your next steps.
If your claim has been denied, you may want to look into appealing the decision. During the appeals process, you can submit evidence including police and accident reports, witness statements, medical records, and cost estimates to back up your claim.
Also, if your insurance claim was wrongfully denied, you can appeal the decision by submitting a demand letter detailing your case and attaching copies of supporting documentation. It might be useful to consult with an experienced lawyer who specializes in car accidents to assist with your claims.
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