Even if your insurance company rejects your claim for compensation after an auto accident, you may still have options. No one ever wants to use their own or someone else’s auto insurance. Claims are typically filed after unfortunate events, such as vehicle accidents. In the event of a loss, you anticipate compensation. Things get much worse when the insurance company rejects your claim. In this piece, we’ll examine potential reasons for claim denials and what steps you may take if your claim is denied.
What’s a Claim Denial Letter?
An insurance adjuster will investigate your car accident claim and write a report detailing what happened. After reviewing the evidence, the insurance adjuster will decide whether or not to pay for the vehicle accident. If that is their decision, the insurance company will give you a formal letter explaining why the accident was not covered. Even if your auto insurance claim is first rejected, you may still be able to pursue compensation. You can file an appeal with your insurance carrier if you do not agree with their decision to deny your claim.
To apply for free, call (877) 735-0016
Common Reasons for Claim Denial
The following are some of the most common explanations given by insurance providers for denying claims:
- Policy exclusions
- Expired insurance policy
- Your plan does not provide complete coverage
- Involvement of an uninsured driver in an accident
- You are guilty of a crime
- Invalidity of your driver’s license
- You are not covered by this insurance policy.
- Bad faith
- You failed to make a prompt report of the incident
- A liability controversy exists
What To Do If Your Car Accident Claim Is Denied?
If the insurance provider has denied your car accident claims, you should take the following steps, where possible:
Get Assistance from a Car Accident Attorney
The first step you should take after an automobile accident is to hire an attorney. Having an expert legal representative on your side is vital, despite your hesitation and worries about being accused of making a claim frivolously. Your vehicle accident attorney will determine who is at fault, obtain evidence that proves it, and be ready to take the matter to court. Your attorney will also act as your representative during any insurance negotiations.
Learn the Reasons Your Claim Was Rejected
The next step is to investigate the reason(s) your claim was turned down. Companies who issue denials of claims have a legal responsibility to explain why they did so. Sometimes, this is because the insurance adjuster lacked the proper supporting materials. On the other hand, they may claim that the policyholder wasn’t covered or didn’t have enough insurance to cover what happened. Your legal representation can evaluate your rejection and advise you accordingly. You can then decide whether or not to file a formal appeal or continue with negotiations.
Show the Insurer More Proof
Your insurance claim may have been rejected because the claims adjuster lacked sufficient documentation or details to evaluate your case correctly. Providing them with the appropriate paperwork is a simple solution to this problem. The following is evidence your automobile accident attorney is expected to provide
- Pictures from the scene of the accident.
- A video of the accident.
- Photocopies of your health records.
- Additional material proof that the policyholder is at fault for the accident that the insurance company needs to know
Most denials can be overturned by providing either more proof or previously lacking information. However, there are other actions your automobile accident attorney can take if necessary to persuade the insurer to reconsider their decision.
Reconsider Your Settlement
If the insurance company rejects your claim or makes an unsatisfactory settlement offer, you may need to keep bargaining with them. Let’s say your insurer has reason to suspect the value of your claim is more than they’re offering. Your attorney must renegotiate with the insurance adjuster in such a situation. You should consult a lawyer before accepting a settlement from an insurance company that previously denied your claim but then unexpectedly made you an offer. The last thing you need is for insurance firms to try to save money by taking advantage of you.
You Might Want to File a Bad-Faith Claim
It may be essential to file a bad-faith insurance claim if your insurer insists on upholding their initial denial of your claim and makes no effort to resolve the matter outside of court. To assess whether a bad faith claim is warranted following your vehicle accident, your attorney will thoroughly examine the available evidence and conversations with the insurance company. Imagine that your insurance company unfairly withheld payment on your claim, gave you conflicting information about your coverage, or otherwise failed to pay you for the losses to which you were entitled under the terms of your policy. If that’s the case, your attorney will see they face consequences.
Appeal a Denied Auto Insurance Claim
If your auto insurance claim was denied, you can file an appeal by following these procedures. The appeals procedure is notoriously tedious and time-consuming. Hiring a lawyer specializing in vehicle accidents might help you get your life back on track quickly after an accident. While you concentrate on getting better and moving on with your life following a vehicle accident, your lawyer will handle appealing the denial of your claim.
Your lawyer will first collect evidence before writing an appeal letter on your behalf. Once you’ve gathered all of your supporting documentation, you may send a letter to your insurance provider explaining your case and asking for a reconsideration of their original decision. This is a letter of appeal. You have the right to submit a complaint with the state insurance commissioner’s office if your appeal is denied by your insurance carrier. If your claim was denied, this department will look into it to see if they were justified. If they determine that your claim wasn’t fraudulent, the insurance company may be ordered to reimburse you.
Get Ready To File a Car Accident Lawsuit
Denials of insurance claims are sometimes quite justified. The motorist who hit you might not have insurance because they fell behind on their payments. Sometimes, even a minimal level of insurance is not enough to cover a loss. Even if the insurance company first refuses to pay for all of your damages, they have to eventually pay up to the maximum allowed under the policy. You can file a civil action against the person you hold responsible for the vehicle accident and seek compensation for any extra damages.
Get Lawsuit Funding for Car Accident Lawsuits from High Rise Financial
High Rise Financial offers affordable settlement funding for your car accident lawsuit. Call us today at (866)-407-6404 to schedule a simple consultation. Our dedicated legal funding team will be happy to meet with you and help you with your settlement loan application.