Denial of Auto Insurance Claims

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Auto insurance is required by law to be able to drive. It also protects us in the event that we are involved in an accident. You can file a claim to replace, pay medical bills or for theft depending on how much coverage you have. Good auto insurance companies will quickly handle your claim. Be aware, however, that insurance does not guarantee acceptance of your claim.

Common Reasons to Deny a Claim:

Not included in coverage

You may not get the full extent of your insurance’s support if you have only minimum liability coverage. If you are involved in an accident, your minimum liability coverage will not protect your vehicle. You should have collision or Underinsured motorists coverage if the other driver is un/underinsured. Otherwise, you could lose your compensation.

You are not eligible to be covered by the policy

If you are not legally covered by the policy, you will be denied coverage. If you’re a high-risk driver or teenager, your name might be exempted from the policy. In that case, you won’t receive any compensation, and any claims will be denied.

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Lapped coverage

You could lose your insurance if you don’t pay your premiums. Even if your insurance company cancels your policy within a few days, you will be uninsured. You will have to cover all damages.

Exceed

The insurance company will deny your claim if the amount you are claiming exceeds the limits set forth in your policy. Your policy will specify that the insurance company will only cover a specific amount. Any amount above that amount will be denied.

Fraud

The insurance company may deny your claim if it is fraudulent. This will most likely result in your policy being cancelled. You could be facing serious consequences if you are charged with insurance fraud. This includes fines and jail time.

If you claim has been wrongfully denied,

In some cases, insurance companies incorrectly deny claims. You don’t have to be helpless if this happens. If your insurance company fails to pay legitimate claims within their policy limits, there are steps you can take to make sure they do.

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Get documentation from your insurance company

First, contact your insurance company. You should ensure that all evidence, including eyewitness testimony, policy reports, and photographic evidence, is present to your insurance company. Ask them to reconsider their decision and reevaluate the claim.

Appeal to the State Insurance Commissioner

If you are unable to reach an agreement with your insurance company, you can appeal to your State Commissioner. In your appeal, attach the letter from your insurance company that denied your claim. They are required to give you written notice of denial.

Find an Attorney

Next, you can hire an attorney to sue your insurer for bad faith, breaching a contract, and/or violating your state’s insurance codes. You should take immediate action as each state has its own time limits for filing claims. If you exceed that limit, you may not be permitted to sue the insurance company.

Switching to a New Provider

Even if your car insurer comes around after you have taken these steps, the deliberate wrongful denial or rejection of a claim is a clear indication that they are unreliable and unethical. This knowledge is enough to get auto insurance quotes online from trusted, reputable providers. Then, switch to the one offering the best rates.

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Although you have the right to file a claim when you need it, your claim will be denied if it is not within the limits of your policy. If you are denied a claim, you must fight for your rights and seek the rightful compensation.