It’s easy to quit and walk away when an insurance adjuster dismisses your car accident claim. However, remember that just because your claim was denied doesn’t imply it is invalid. The many reasons people find themselves with a denied car accident claim and often it’s because insurance companies are for-profit businesses with entire departments dedicated to reducing and denying accident claims for compensation.
Common Reasons for Insurance Claim Denials
Your insurance provider wants you to be satisfied with the outcome of your claim. After all, you’re the one who’s paying the insurance premiums, and you have the option of moving your business elsewhere.
The insurance company, however, is incentivized to make a profit, something it achieves by paying out as little money as possible for each claim filed. Read on to learn more about some of the most typical causes for insurance claim denial.
1. The Insurance Company Found You to Be at Fault
One of the most common causes for receiving a claim denial letter is when your insurer determined you were at fault for the accident. For example, there may be proof you violated a red light, or the police could have issued a reckless driving citation as a result of the accident. The insurance company may also interpret something you say as an admission of guilt.
2. Lack of Relevant Medical Records
You will need to provide documentation from a doctor if your claim includes a request for reimbursement for medical care required as a result of the accident. This evidence could include a diagnosis, such as a whiplash injury, or medical papers proving you were treated for an accident-related ailment.
If you are unable to provide any of these documents, the insurance company will be forced to refuse your claim due to a lack of evidence. When you’ve been harmed in an accident, always seek medical attention and document the injuries you sustained.
3. The Insurance Policy Wasn’t Enough to Cover the Claim
Accidents that completely destroy your vehicle and leave you seriously injured can result in a loss that exceeds your insurance policy’s coverage limits. You may receive a low-ball offer, or the insurance may simply reject your claim entirely.
In such circumstances, consider your legal alternatives for redress. And although you may not be able to receive additional money through the insurance company, a lawsuit can open up new avenues for compensation directly from the liable individual.
4. Questionable Liability
In some circumstances, the insurer is unable to determine who was liable due to insufficient evidence or contradictory statements. As a result, they may deny your claim if they consider there is a fair probability you were to blame for the accident. A car accident attorney could be able to assist you in determining the truth and modifying your claim so you can receive compensation.
5. You Didn’t Make Your Insurance Payments on Time
To keep your insurance coverage active, you must make timely payments. If you’ve skipped payments, your insurer may deny any claims you file during the overdue period altogether.
Only when you keep your account in good standing does your insurance policy provide protection. Be on the safe side and make your payments on time.
Perform Due Diligence and Hire a Lawyer
Now you’re aware of the scenarios in which your claim might be denied. Make sure you don’t leave any loopholes on your end so your claim can be processed to a favorable outcome.
Additionally, consider hiring a dedicated car accident lawyer. Insurance adjusters are likely to take advantage of an accident victim’s inexperience when they know they have no legal representation.
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