It can be disheartening and infuriating when an insurance company denies your accident claim. However, you must stay calm and not call the insurance company, but give them a piece of your mind. Auto insurance companies usually deny claims to avoid dispersing payment.
If the insurance company denies your claim, you may believe that you will have a battle on your hands to get compensated for your injuries, lost income, and property damage.
Here at The Paul Wilkinson Law Firm, we know the complications of car accident claims and the annoyance of denied coverage. In this blog, we provide some measures you can take if your claim has been denied and how a car accident attorney in Denver can assist you.
Table of Contents
Why Insurance Companies Will Deny a Claim
You have the right to get compensated if another motorist is at fault for your collision. If the driver has auto insurance, filing a claim with their insurer is usually what you’ll do first. However, insurance companies don’t approve every insurance claim they get. As a matter of fact, insurance companies often deny claims, and there are many reasons why they do.
Bad Faith
When a motorist buys auto insurance, they generate a contract with the insurance company. The insurance company then has a responsibility to act in good faith when it gets a request for benefits, including third-party claims that are submitted by accident victims.
An insurance company must use due diligence and provide your claim with the attention it deserves. Your claim should be:
- Handled promptly
- Evaluated by an insurance adjuster
- Investigated completely
If, after painstaking consideration, an insurance company wants to deny your claim, it has the right to do so. However, the company must have a valid explanation for the denial.
Bad faith practices still occur. Insurance companies have been able to create methods that let them avoid the law. Some companies will deny a claim without ever looking at its accomplishments. Others will needlessly delay processing so that victims get nervous and become keen on settling. Some might even avoid the responsibility of investigating the accident at all.
Claim Not Filed in a Reasonable Amount of Time
Most insurance companies don’t have a definite deadline for when you must file a claim after a collision. However, these companies do have the right to deny your claim if it is not submitted within a reasonable amount of time after an accident.
A reasonable amount of time depends on the other motorist’s insurance policy and company. In some instances, a reasonable amount of time is a couple of days. In other cases, it means you have a few weeks to file a claim.
No Insurance Coverage at the Time of the Accident
An insurance company will deny your claim if it verifies that no insurance coverage existed at the time of the accident. You can be sure that the insurance company will examine the driver’s policy to ensure that it existed when you were injured. An insurance policy can be void, and there might not be any insurance if the driver didn’t pay the premiums, and the policy lapsed. If no effective policy exists, the insurer will clarify that the policy has lapsed and decline the claim.
Damage Excluded from Policy
Auto insurance companies will only pay for damages that are covered by the at-fault driver’s insurance policy. Most policies have exclusions. Exclusions are things that the insurance company may decline to cover. For example, most insurance companies won’t cover damages due to adverse weather. Therefore, insurance companies will likely only pay for damages that are related to the accident.
Disputed Liability
When you submit your insurance claim, you’ll give a thorough, comprehensible account of the accident and proof to corroborate your request. Once the insurance company gets your demand letter, it will assess the accident and decide if your claim is valid.
If there is evidence to suggest that their insured driver might not be responsible for the crash, the company can deny your request for compensation.
Steps to Take After an Insurance Claim Denial
Though getting a letter of a car insurance claim denial isn’t pleasant, it doesn’t need to be the end of your effort at receiving a positive resolution. By thoroughly following specific steps, you can boost your odds of successfully handling the denial and getting an outcome in your favor.
Working with a Denver car accident lawyer is always a good decision. Your lawyer can explain the process, guide you in the right direction, and help you avoid any pointless obstacles.
Review the Denial Letter
You will get a written notice when your insurance company rejects your car accident claim. The first step to take is to meticulously review the denial letter to better understand the insurance company’s stated reasons for the denial. Learning about these reasons for denial is crucial when it comes time to decide the right response.
You should also partner with an attorney to review the letter in detail to look for any errors. There’s a chance that mistakes in the insurance company’s investigation process could generate a denial letter.
Review Your Insurance Policy
When dealing with a denied insurance claim, another first step is to thoroughly review your insurance policy. The steps to take when reviewing your policy include:
Request a copy of your policy – If you don’t already have a copy of your insurance policy, request one and review it carefully. Pay close attention to the exclusions, provisions, and coverage limits.
Understand the policy language – Insurance policies are usually (on purpose) complex and filled with legal jargon. This is why it’s best to hire a legal professional to help you understand what your policy says.
Get clarification – Reach out to your insurance company if your policy includes ambiguous terms. Understanding your exact coverage will help verify if the denial is valid. Partner with a skilled car accident lawyer to reread your policy and your claim denial. They are knowledgeable in understanding these policies and the legal terms, knowing the methods insurance companies will use to try to deny claims that are valid.
Collect evidence – You and your attorney must collect all pertinent supportive evidence in response to your denied insurance claim. You should completely document everything regarding your car accident including:
- Medical treatment
- Damage to your vehicle
- Collision scene (street signs, road conditions, property damage, etc.)
- Witness statements and expert testimonies
Working with your lawyer to gather this evidence will provide you with a solid foundation to dispute your claim denial.
Contact the insurance company – You can have professional communication with your insurance provider during the entire process.
With that being said, it’s a good idea to let your car accident attorney handle all communications with the insurance companies after a car accident, especially if your claim has been denied. This way, you can avoid making any statements that the insurance company could use against you.
Your Options After You Get a Denial
Your pursuit for payment after a car collision shouldn’t stop just because an insurance company has sent you a denial letter. You still have options to get the compensation you deserve.
Appealing Your Denied Insurance Claim
You have the right to appeal an insurance claim denial. Insurance companies handle appeals in a couple of ways such as:
Internal appeal – The appeal process for some insurance companies is done internally. This means that you’ll submit your appeal to a certain appeals department within the company. This department will review your claim and request for an appeal.
Arbitration – Some insurance policies will require any claim appeals to be resolved through arbitration. Arbitration is like a private trial. You and the insurance company go before an unbiased third party, referred to as an arbitrator, and present your respective cases. You might each have the chance to present evidence and witnesses. The arbitrator will examine all relevant testimony, information, and evidence before rendering a decision. The arbitrator’s ruling is binding and final.
The appeals process can be complicated, and you don’t want to make any mistakes. Instead of appealing your claim yourself, talk with an experienced car accident attorney. They will go over your denial letter, prepare a convincing appeal, and act on behalf of your interests. Your appeal will have a good chance of success with a lawyer by your side.
Was Your Car Insurance Claim Denied? Contact One of Our Skilled Car Accident Attorneys Today
Handling a denied car accident insurance claim can be perplexing, difficult, and annoying. However, knowing your rights, reviewing your policy, collecting evidence, and getting legal assistance can drastically improve your odds of success.
If you hire one of our skilled car accident attorneys, they can take on all these responsibilities. This lets you have time to recoup from your injuries, knowing your insurance claim is in good hands. If you have a denied insurance claim from a car accident, contact us today for a free consultation.
