What To Do When Your Car Accident Insurance Is Denied

Car accident Insurance

When you’re involved in a car accident, one of the things you should do is to file an insurance claim to your insurance company to receive compensation for the injuries and other damages you sustained. However, filing the claim itself isn’t a guarantee that you’ll get reimbursed for all your losses. 

There are instances in which the insurance company is compelled to deny your claim due to a variety of reasons. Hence, when this happens, you need to be prepared for the next steps to take right after the denial of your claim. 

So, when your car accident insurance claim is denied, below are the things you should do from the get-go:

Know The Reasons Behind The Car Accident Insurance Denial

After receiving the news that your insurance claim has been denied, the first thing you should do is know the reasons behind the denial. By doing this, you’ll understand why the insurance company has come up with that decision and determine if you can still do something to remedy the situation and get the recovery you need, including different treatments and ways to overcome anxiety after the accident

Common Reasons For The Denial of a Car Accident Insurance Claim:

  • You were the one who caused the collision. Depending on the laws applicable in your state, the claim of the driver who was found to be at fault for the accident may be denied. 
  • You failed to pay your premiums, and, as a result, your policy has lapsed. In such a case, you’re no longer covered by the insurance, so the claim may be denied. 
  • You weren’t named as a party to the insurance policy, which is why your claim may be denied. 
  • Your damages exceeded the limits provided by your policy. When this happens, the insurance company may reject your claim. 
  • The type of coverage you have doesn’t include the accident you were involved in. In most cases, the insurer may reject your claim if the collision is covered by insurance you didn’t purchase at all. 

Appeal The Denial of Your Car Accident Claim

Now that you’re aware of the common reasons for claim denial, it’s time to appeal the decision with the insurance company involved. Typically, appealing the denial doesn’t have to be a difficult process. All you need to do is review the pieces of evidence you submitted along with your claim and send a letter to the insurer explaining why you’re not in favor of their decision. 

At this stage, you may want to submit further documents, including medical records, police reports, pictures, and other essential information that may support your letter and your claim once again. Hence, if you believe you have a strong claim and the insurer’s decision will be reversed, then it can be a good idea to hire an attorney from a reliable law firm in your area to help you navigate the process. 

However, if you want to better understand how a legal professional can help you with your car accident and insurance claims, you may click fasigbrooks.com for more information

Consider A Claim of Bad Faith Against the Insurance Company

In case you find yourself in a situation where you think there’s nothing you can do to reverse the insurer’s denial decision, you may want to file a complaint against the state’s insurance commissioner or hire an independent claims adjuster. But if there’s one thing that may increase your chances of getting a reversal, it may be the filing of a claim of bad faith against the insurance company. 

Generally, the insurance company has the responsibility to review and investigate your claim and work with you to come up with a fair settlement offer. However, if you strongly believe that they failed to handle your claim reasonably, such as their failure to investigate, losing necessary paperwork, or deliberately choosing not to respond to your claim, then you may pursue a legal claim of bad faith or negligence against them. 

Although most states differ on how they describe insurance bad faith, its most fitting definition is that it’s an insurer’s act of intentionally or deliberately refusing to provide insurance benefits under a certain policy. That being said, it’s best to hire an attorney to assist you. Their knowledge, skills, and expertise in car accident cases and insurance claims would make a huge difference in the success of your insurance claim. 

The Bottom Line Insurance Claims

Indeed, dealing with a denial of your car accident insurance claim can be a frustrating experience. But, there’s nothing to lose hope for because you can still get the insurer’s decision reversed by following the steps mentioned above. 

While the insurance claims can be complicated and intimidating, understanding how it works may make it easier for you to navigate the whole process and ensure a positive outcome in your favor. As a result, you’d be able to obtain the compensation you deserve to maximize recovery and get back to your normal life in no time.