STEPS YOU CAN TAKE TO RECEIVE COMPENSATION
Car accidents are stressful enough, but they can become even more stressful when an insurance company denies your claim. Even if you followed all the rules by filing a police report, gathering supporting evidence, and submitting documentation promptly, The coinsurance company might still deny your claim. Understanding the reason for the rejection and what you can do about it can help you move forward in receiving funds for damage and injuries.
The experienced legal team at the Karam Law Office can help you understand your rights following a motor vehicle accident. You may still be entitled to compensation after an insurance company initially denied your claim. The process for appealing a denied insurance claim is frequently complex. If one or more insurance companies have denied your accident claim, contact our office at (832) 753-1769 to speak with one of our experienced attorneys.
REASONS FOR A DENIED CLAIM
The circumstances surrounding your accident would produce several factors that result in a denied claim. Reports from law enforcement and eyewitness, recreating the accident scenario, and more can influence your claim’s status. Sometimes, insurers may deny claims due to bad faith or misrepresenting facts by anyone involved in the accident.
Following are some of the most common reasons for an insurance claim denial:
- Lapsed insurance policy. Whether it’s your policy or one owned by others involved in the accident if premiums go unpaid, so will your claim, as coverage essentially doesn’t exist.
- Policy exclusions. Pay attention to the coverage your policy provides. Filing damage claims when you don’t have coverage will result in a claim denial.
- Insufficient coverage. Drivers who choose the state minimum liability limits to keep the cost of coverage low can quickly exhaust their liability limits. This situation can result in only partial payment, leaving you on the line for the rest.
- Uninsured motorist. If an uninsured motorist hits, provides false information or commits a hit-and-run, your claim may be denied if you do not carry uninsured or underinsured motorist coverage.
- At-fault driver’s policy denied the claim. Several reasons can explain this, including incorrect insurance details or not having enough or the proper coverage. In no-fault states, you are responsible for paying medical expenses no matter who caused the accident.
THE CLAIMS DENIAL LETTER
After filing a claim with your insurance company or the at-fault driver, an insurance adjuster will document the accident’s details and analyze the facts to determine whether to accept or deny the claim. If the insurer denies the claim, it must send you a formal denial letter outlining the reasons for the denial. A denied claim isn’t the end of the process. You can appeal the decision with the company or file a lawsuit against the insurer.
FILING AN APPEAL OR A LAWSUIT
Most auto insurers have a specific process for contesting a denied claim. Carefully gather evidence supporting your case, including police reports, eyewitness information, photographs, medical records, and other pertinent information. Draft an appeal letter spelling out why you disagree with the insurer’s decision, providing as much detail as possible with the supporting evidence.
You may also elect to file a lawsuit with the help of an attorney against the company, either while the appeal is underway or afterward. Understanding your chances is essential, as is realizing your case will have a higher level of scrutiny if you take this route. However, you should also consider that insurance companies are for-profit operations, and large claims represent a threat to their bottom line, resulting in claim denials or undervalued settlements.
Insurance companies have a duty to act in good faith to settle claims, and if they fail to do so, a lawsuit can be an effective way to make them pay the damages they should. Dealing with insurance companies in these circumstances is usually time-consuming and stressful, as the appeals process can become complex.
HIRE AN EXPERIENCED ATTORNEY TO GET THE COMPENSATION YOU DESERVE
You shouldn’t have to pay for damages to your vehicle, property, or medical expenses that an auto insurance policy should cover. If you feel an insurer has wrongly denied your claim, contact our office at (832) 753-1769 to schedule your free consultation.