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Car insurance claim denial FAQs

On Behalf of | Sep 30, 2024 | Insurance

When you’ve been injured in a car accident, you have medical expenses, lost wages and property damage. If you’ve diligently paid your insurance premiums, you might be comforted by the thought of your policy covering some of these losses. Yet, the sad reality is that a lot of car accident insurance claims are denied. This can leave you with several questions. We hope to answer some of the most frequently asked questions here so that you’re better informed and have a better understanding of what your next steps need to be to protect your interests.

If you’ve found yourself to this post, then you probably have a lot of questions about your insurance claim denial. Here are some that you may be grappling with:

  • Why was your accident claim denied? There are multiple reasons why an insurance claim may be denied. This includes missed premiums, lack of coverage, liability dispute, and even the existence of a pre-existing condition. Your insurance provider should send you a denial letter that gives the specific reason for your claim denial. Once you have this information, you’ll have a better idea of your next steps and how to contest the insurance company’s determination.
  • What should you do after your claim is denied? Once your claim is denied, you need to figure out your next steps. In most instances, claimants can appeal their claim denial. Here, you should draft a letter that clearly lays out why your claim should’ve been approved, provide any additional evidence that supports your claim, and articulate why the denial should be reconsidered. If the appeal is denied, then you may need to think about taking legal action.
  • Where can you look for evidence to support your claim? Before submitting your claim, you should gather as much evidence as you can. This includes taking pictures of the accident scene and your injuries, gathering witness statements, securing expert opinions, and tracking your losses. To strengthen your claim as much as possible, think through weaknesses in your case that the insurance company may try to exploit to deny your claim. That way you can focus on gathering evidence that could contradict their assertions.
  • How quickly does an insurance company have to pay your claim? There’s no set timeframe during which the insurance company has to pay your claim. However, the insurance company is required to assess and pay your claim, if payment is to be made, in a reasonable amount of time. If they stall too long, then you may have an argument that they’re acting in bad faith.
  • Will your policy cover damage if your car is used for business purposes? Not if your policy is a personal policy. So, if you drive for a rideshare business or use your car to make deliveries of some sort, then you should make sure that your insurance policy covers business uses, or that the company for which you’re providing services offers third-party coverage, otherwise you might be stuck with your losses if you’re involved in an accident while you’re on the job.

Do you have additional questions about your insurance claim denial?

If so, don’t let them go unanswered. Instead, discuss your circumstances with your attorney so that you know what you need to do to protect your interests. Hopefully then you’ll be able to secure the compensation needed to offset your losses, treat and recover from your injuries and reclaim your normal life.

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